Zcash (ZEC) is a major Digital Asset known as a Privacy Coin in the cryptocurrency world. Unlike Bitcoin, which has publicly visible transaction records, Zcash is designed to provide maximum protection for user privacy.
This content summarizes and explains the key features, advantages, and disadvantages of ZEC.
What is ZEC (Zcash)? 🤔
Zcash started in 2016 and is based on the technology of Bitcoin.
Main Difference: While Bitcoin allows anyone to see the sender's Address and the amount sent, this information can be concealed in Zcash.
Technology: It uses an advanced technology called zk-SNARKs. This technology can prove that a transaction is valid without revealing 'how much is sent, or to whom it is sent.'
* Main Advantages of ZEC
The features that make ZEC stand out compared to other Cryptos are -
1. Full Privacy
ZEC has two types of addresses: Address (T-address) and Shielded Address (Z-address).
Using a Shielded Address, the sender, receiver's Address, and the amount sent are all concealed, so no one can trace it.
2. Compliance with Regulations (Optional Privacy)
The main advantage of Zcash: there is a View Key that allows the transaction details to be disclosed if necessary (for example - for audits or legal compliance).
Thus, it can offer more convenience in exchanges compared to other Privacy Coins like Monero.
3. Strong Technical Team
The founders of Zcash are experts in Cryptography and Computer Security.
* Disadvantages of ZEC
Points investors should be aware of are -
1. Regulatory Risks 🛑
Privacy Coins are under constant scrutiny by governments and regulators, claiming they can be used for money laundering.
Therefore, there is a possibility of ZEC being delisted from some exchanges.
2. Market Acceptance (Adoption) is Limited
Compared to major Cryptos like Bitcoin and Ethereum, the usage rate of ZEC is still low in terms of Daily Trading Volume. It will take time for everyone to accept the concept of a Privacy Coin.
3. Technical Complexity
Zcash's technology (zk-SNARKs) is extremely advanced and complex, making it difficult for the average user to understand.
* Conclusion Analysis
ZEC (Zcash) is one of the best Cryptos that can truly guarantee Digital Privacy. As the need for privacy increases among investors, ZEC's value may rise, but it is also necessary to be aware of regulatory challenges.
Currently, it continues to stand out as one of the most interesting coins in the crypto world.
