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Zcash

Zcash
Zcash logo.svg
Zcash logo
ISO 4217
Code ZEC[a]
Demographics
Date of introduction 28 October 2016; 20 months ago (2016-10-28)
User(s) Worldwide
  1. ^ Unofficial.

Zcash is a cryptocurrency aimed at using cryptography to provide enhanced privacy for its users compared to other cryptocurrencies such as Bitcoin. The Zerocoin protocol was improved and transformed into the Zerocash system, which was then developed into the Zcash cryptocurrency in 2016.[1] Development of protocol improvements and the reference implementation is led by the Zerocoin Electric Coin Company, colloquially referred to as Zcash Company.[2][3] The founder and CEO of Zcash Company is Zooko Wilcox-O'Hearn. Its founding team includes cryptographer Matthew D. Green from Johns Hopkins University. Roger Ver was one of Zcash Company's initial investors.[1]

Details

Zcash payments are published on a public blockchain, but users are able to use an optional privacy feature to conceal the sender, recipient, and amount being transacted.[1] Like Bitcoin, Zcash has a fixed total supply of 21 million units.[2] In the first four years, 20% of the coins created in that period are allocated to a "founders' reward" shared between investors, developers, and a non-profit foundation.[4]

Transactions can be "transparent" and similar to bitcoin transactions in which case they are controlled by a t-addr, or can be a type of zero-knowledge proof called zk-SNARKs; the transactions are then said to be "shielded" and are controlled by a z-addr. Zcash coins are either in a transparent pool or a shielded pool; as of December 2017 only around 4% of Zcash coins were in the shielded pool and at that time most wallet programs did not support z-addrs and no web-based wallets supported them.[5]

Zcash affords private transactors the option of "selective disclosure", allowing a user to prove payment for auditing purposes. One such reason is to allow private transactors the choice to comply with anti-money laundering or tax regulations. "Transactions are auditable but disclosure is under the participant's control."[6] Wilcox has hosted virtual meetings with law enforcement agencies around the U.S. to explain these fundamentals and has gone on the record of saying that "they did not develop the currency to facilitate illegal activity".[2]

Network upgrade

The first network upgrade of Zcash will be done through a hard fork at the block number 347500[7] which is expected to be on 25 June 2018. A new feature will be introduced that allows users to set transaction expiration times.[8] Five Zcash Improvement Proposals namely, 143, 200, 201, 203 will be implemented[9]. This upgrade also improved the signature verification that helps improve the transaction speed.

See also

References

  1. ^ a b c Jon Southurst (2016-06-07). "Snowden: Anonymous 'Zcash' Could Solve Bitcoin Surveillance Risks". Bitcoin News. Retrieved 2016-10-08. 
  2. ^ a b c Popper, Nathaniel (2016-10-31). "Zcash, a Harder-to-Trace Virtual Currency, Generates Price Frenzy". The New York Times. 
  3. ^ "THE ZEROCOIN ELECTRIC COIN COMPANY LLC". Delaware Department of State: Division of Corporations. Retrieved 2017-12-19. 
  4. ^ Peter Todd (2016-11-14). "Cypherpunk Desert Bus: My Role In The 2016 Zcash Trusted Setup Ceremony". 
  5. ^ Quesnelle, Jeffrey (2017). "On the linkability of Zcash transactions". arXiv:1712.01210Freely accessible [cs.CR]. 
  6. ^ Clozel, Lalita (October 31, 2016). "How Zcash Tries to Balance Privacy, Transparency in Blockchain". American Banker. 
  7. ^ "Zcash - Overwinter Network Upgrade". z.cash. Retrieved 2018-05-05. 
  8. ^ "Overwinter – A Zcash network upgrade". eCoin4Dummies.com. 
  9. ^ "zcash/zips". GitHub. Retrieved 2018-05-05. 

External links