ZEC
Zcash (ZEC) is a cryptocurrency that prioritizes user privacy and anonymity. It's built on the foundation of Bitcoin's blockchain technology but incorporates advanced privacy features that set it apart. Here are its key features:
1. Enhanced Privacy:
- Zero-Knowledge Proofs: Zcash utilizes a cryptographic technology called zk-SNARKs (zero-knowledge succinct non-interactive arguments of knowledge). This allows transactions to be verified without revealing the sender, recipient, or the amount being transferred.
- Shielded Transactions: Zcash offers the option to conduct "shielded" transactions, where all transaction details are encrypted and hidden from the public blockchain. This provides a high level of privacy for users who need it.
- Optional Transparency: While privacy is a core feature, Zcash also allows for "transparent" transactions, similar to Bitcoin, where transaction details are publicly visible. This gives users flexibility in how they want to use the cryptocurrency.
2. Core Functionality:
- Decentralized and Open Source: Zcash operates on a decentralized network, meaning it's not controlled by any single entity. The code is also open source, allowing anyone to review and contribute to its development.
- Proof-of-Work Consensus: Zcash uses a Proof-of-Work (PoW) consensus mechanism, similar to Bitcoin, where miners compete to solve complex mathematical problems to validate transactions and add new blocks to the blockchain.
- Limited Supply: Like Bitcoin, Zcash has a fixed supply of 21 million coins, which helps to create scarcity and potentially maintain its value over time.
3. Additional Features:- Fast Transaction Times: Zcash transactions are generally faster than Bitcoin transactions, making it more suitable for everyday use.
- Low Transaction Fees: Zcash transaction fees are typically low, making it cost-effective to send and receive ZEC.
- Community-Driven Development: Zcash has a strong community of developers and users who contribute to its ongoing development and improvement.
In essence, Zcash is designed to be a digital currency that provides users with greater control over their financial privacy. Its advanced cryptographic features make it a popular choice for those who value anonymity and security in their transactions.
Story behind Zcash:The story of Zcash is rooted in a desire to enhance privacy and anonymity in the world of cryptocurrency. It emerged from a team of researchers who sought to address perceived vulnerabilities in Bitcoin's transaction tracking mechanisms. Below are the key moments and motivations behind its creation:The Zerocoin Roots:- In 2013, a group of scientists, including Eli Ben-Sasson, Alessandro Chiesa, Christina Garman, Matthew Green, Ian Miers, Eran Tromer, and Madars Virza, began working on "Zerocoin," an experimental proposal to improve privacy in Bitcoin.
- They recognized that while Bitcoin transactions were pseudonymous, they could still be linked to individuals through various analysis techniques.
- Zerocoin aimed to break these links by introducing a system of zero-knowledge proofs, allowing transactions to be verified without revealing the sender, recipient, or amount.
From Zerocoin to Zcash:- The Zerocoin project evolved into "Zerocash," and eventually, in 2016, it was launched as Zcash by the Electric Coin Company (formerly known as Zerocoin Electric Coin Company).
- Zcash retained the core idea of zero-knowledge proofs, utilizing zk-SNARKs technology to provide enhanced privacy.
- Zooko Wilcox-O'Hearn, a computer security specialist and cypherpunk, played a crucial role in the development and launch of Zcash.
Regulatory challenges: Zcash operates globally, facing diverse regulations. The U.S. SEC's stance on cryptocurrencies as securities impacts Zcash, especially given its privacy features. FinCEN's AML/KYC requirements for Money Service Businesses (MSBs) also apply. Furthermore, state-level regulations, like New York's BitLicense, add to the compliance burden for Zcash businesses.In the EU, Zcash faces a complex regulatory environment. The proposed MiCA regulation would establish a comprehensive framework for crypto-assets like Zcash, including licensing, custody rules, and AML/KYC compliance. Additionally, Zcash companies must comply with directives like PSD2 (payment services) and GDPR (data protection).
Japan has legalized crypto, requiring exchange registration and AML/KYC compliance. South Korea's approach is mixed, with proposed laws for registration and AML/KYC. China has banned ICOs and restricted trading but invests in blockchain and its own CBDC. Switzerland, a crypto hub, has a permissive environment but still requires compliance with Swiss law and international standards.
Past Performance:
| Duration | Returns |
| Past 3 Months- | 11.7% |
| Past 6 Months- | 24.6% |
| Past 1 Year- | 49.6% |
| Past 5 Year- | -61% |
Although, the past performance of the ZEC is not looking very appealing, having delivered negative returns over the last 5 year period. Zcash's price has fluctuated significantly over the past 5 years, with periods of both rapid growth and sharp declines.
Technical analysis and Future growth:
As it can be seen from the above chart, Zcash has made an ascending wave forming Higher High (HH), Higher Low (HL) structure. Currently Zcash is trading near a previously formed HL around the accumulation zone, giving a good Risk to Reward ratio based on our expected target of 110$ by 2026 year end.
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