What is Zcash? – Crypto Trends – Bitcoin, Cryptocurrency And Blockchain News

Zcash (ZEC) is an open source decentralized cryptocurrency that guarantees privacy and selective transparency of transactions. Coin payments Zcash They are posted on the public blockchain, but the sender, recipient, and transfer amount are confidential.

The level of anonymity of Zcash It is observed by many well-known companies and people. For example, WikiLeaks began accepting donations at ZEC. Edward snowden said that cryptocurrency was the most interesting alternative to Bitcoin. Europol on the other hand, officially expressed concern about the growing popularity of the cryptocurrency.

The Zcash cryptocurrency is based on the Bitcoin protocol, but has its own blockchain and currency token. Zcash can be shipped worldwide and traded through exchanges, personal transfers, etc.

The issuance capacity of the Zcash coin is 21 million coins. New blocks are created with a size of 2 Mb each 2.5 minutes. Block reward does 12,5 ZEC And it will be reduced twice every 4 years from the time of launch in October 2016.

The main technical quirk of Zcash is the use of Zero Knowledge Proof (ZKP). This allows confirming transactions without revealing additional information and makes the use of the crypto currency completely anonymous.

A little history

In 2014, the developers of Zerocoin from Johns Hopkins University and cryptographic teams from the Massachusetts Institute of Technology, the Israel Institute of Technology, and Tel Aviv University. These study centers jointly developed the Zerocash Protocol, improving on the original design. In that sense they declared:

Thanks to the New Zerocash Protocol, unlike Zerocoin, users can make direct payments to each other using a much more efficient cryptographic protocol that hides not only the origin but also the amount of the payment.

The Zcash project was officially announced by the Executive Director Zuko Wilcox, on January 20, 2016 as the evolution of the existing Zerocoin project. With the use of the new Protocol, the independent cryptocurrency Zcash (ZEC) appeared, it was no longer a “supplement” to Bitcoin. On October 28, 2016, Zuko Wilcox held the official “crypto ceremony” for the launch of Zcash.

How does Zcash work?

Zcash is a privacy protection digital currency based on sound science. Zcash has two types of addresses: private (z-addresses) or transparent (t-addresses). Z directions start with a “z”, and t directions start with a “t”.

A transaction from Z to Z appears on the public blockchain, so it is known that it occurred and that the fees were paid. But the addresses, the transaction amount and the memo field are encrypted and not publicly visible. The use of encryption on a blockchain is only possible through the use of zero-knowledge proofs. This is made possible thanks to the implementation of the protocol zk-SNARK de Zcash.

For example, the owner of an address may choose to disclose the address z and the details of the transaction with trusted third parties, through the use of display keys and disclosure of payments. In this way, you can enable the option of viewing to trusted third parties, for auditing purposes. On the other hand, transactions between two transparent addresses (t-addresses) work the same as Bitcoin: the sender, the receiver, and the value of the transaction are publicly visible. While many wallets and exchanges use t-Addresses exclusively these days, many are moving to protected addresses to better protect user privacy.

Despite having different addresses, both types of Zcash addresses are interoperable. Funds can be transferred between z-addresses and t-addresses. However, it is important that users understand the privacy implications of protecting or unprotecting information through these transactions.

Zcash transaction example

Features and functionalities

  1. Low-cost transactions: transactions have costs close to 0.0001 ZEC.
  2. Address and privacy of the transaction: Zcash offers two types of addresses: shielded and transparent. Protected addresses are not visible. Transactions between protected addresses do not reveal the address, the transaction amount, or the content of the encrypted note field. Transparent addresses and transactions between them can be seen publicly on the Zcash blockchain, in the same way that Bitcoin addresses are visible.
  3. Encrypted Memoranda: A memo field is available for protected transactions. This allows the sender to include information relevant to the receiver, fully encrypted. This is useful to convey messages and instructions, or to ensure compliance with the “Travel” rule of the Bank Secrecy Act.
  4. Display keys: Protected address owners can release transaction details for regulatory compliance or auditing. The owner has the option to reveal all incoming transactions and the memo field, but does not have access to the sender’s address unless identifying information is included in the memo field. Zcash will soon support full display keys that reveal all transaction values ​​inside and outside the address.
  5. Payment disclosure: The sender or recipient of a transaction may disclose specific details of the transaction to third parties. This as needed for an audit. The receiver can reveal a transaction value and a note, but does not have access to the sender’s address. This is currently an experimental Zcash feature.
  6. Transaction expiration: Zcash supports transaction expiration to minimize the impact of an unexploited transaction. By default, a transaction will expire and funds will not be taxed if the transaction is not withdrawn after 50 minutes (20 blocks).
  7. Multi-signature transactions: Zcash supports transactions that require multiple signatures. This means that a transaction may require two or more parties to agree to the transaction before the funds are sent. However, multi-signature transactions are transparent and cannot be made private.

What are zk-SNARKS?

Acronym zk-SNARKS stands for “Succinct Non-Interactive Knowledge Argument of Null Knowledge”, and refers to a proof construct where possession of certain information can be demonstrated, for example. a secret key, without revealing that information, and without any interaction between the verifier and the verifier.

The “zero knowledge test” allows a part (the promoter) prove another (the verifier) that a statement is true. This without revealing any information beyond the validity of the statement itself. For example, given the hash of a random number, the researcher could convince the verifier that a number with this hash value indeed exists, without revealing what it is.

In a “zero knowledge test,” the researcher can convince the verifier not only that the number exists, but that he actually knows that number, again, without revealing any information about the number.

Zero-knowledge “succinct” tests can be verified in a few milliseconds, with a test length of only a few hundred bytes, even for very large program statements. In early zero-knowledge protocols, the tester and verifier had to communicate back and forth over several rounds, but in “non-interactive” constructs, the test consists of a single message sent from one verifier to another. Currently, the most efficient way to produce zero-knowledge proofs that are not interactive and short enough to be published on a blockchain is to have an initial setup phase that generates a common reference chain shared between the verifier and verifier. We refer to this common reference string as the public system parameters.

The value of zk-SNARKS in modern blockchain technology it is clear. It integrates seamlessly with smart contract technology. A smart contract is basically a deposit of funds that is activated once a particular function is performed. When the tasks to be done are multi-layered and confidential, problems arise. You may be required to go through several steps to receive your payment. zk-SNARKS demonstrates that those steps have been taken in the smart contract without revealing what they really are. You can simply disclose part of the process without showing the entire process itself and showing that you are honest about your claims.

The acronym for zk-SNARK can be deconstructed as follows:

  1. Brief: the sizes of the hash functions (tests) are very small compared to the actual process time required to create them.
  2. Non-interactive: there is no or only little interaction. For zk-SNARKs, there is typically a setup phase and then a single point of contact between the tester and the verifier. Also, SNARKs often have the property called ‘public verifier’, which means that anyone can verify without interacting again, which is important for blockchains.
  3. Arguments: the verifier is only protected against computationally limited testers. Providers with sufficient computing power can create evidence / arguments for incorrect assertions. (Note that with enough computing power, any public key encryption can be broken.) This is also known as ‘computational robustness’, rather than ‘perfect robustness’.
  4. of knowledge: the prover cannot build a proof / argument without knowing a supposed witness (eg the address it wants to spend on, the preimage of a hash function, or the path to a certain Merkle tree) node).

The zero knowledge prefix is ​​added, you also need the verifier to know nothing during the interaction apart from the validity of the statement.

zk-SNARKS
zk-SNARKS

Technical characteristics

Project start: October 28, 2016
Last version: Sapling
Transaction size: unshielded, 500 bytes; shielded, 2,000 bytes
Fork: Fork del Bitcoin
Algorithm: Equihash
Mining: Proof of work
Block size: 2MB
Block time: 2.5 min
Block reward: 12,5 ZEC
Fee (default): 0,0001 ZEC

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What is Zcash? – Crypto Trends – Bitcoin, Cryptocurrency And Blockchain News

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