Posted on: 22. March 2018

Zcash Coin

# Provider of the Month - Passive income through Masternodes
The GetNode Club offers its members a stake in the only ever Masternode pool. to the provider - (https://www.getnode.io).

What is Zcash Coin?

Zcash Coin is a cryptocurrency, offering a high degree of privacy and the option of selective transaction transparency. In addition, all completed transactions are published in the public blockchain.

However, users have the option of anonymizing the data of the sender, recipient and the amount transferred, so that no one can view this data. The technical basis of Zcash is the Bitcoin blockchain, which has been altered.

In particular, the maximum number of tokens has been kept constant, so Zcash can have a maximum of 21 million tokens.

Privacy of cryptocurrencies

Classic blockchains store all data such as sender, recipient and amount in one block after the verification of a transaction. This achieves maximum transparency, but the transactions can also be traced back to individual users.

To prevent this, there are several approaches. The first approach to protection was taken by JoinCoin. Here, users could bundle their transactions, so that no distribution of the individual tokens could be traced.

The disadvantage was found in securing the active participation of all users. Another approach was presented by Bitshares 1.0.

Here, users could hide their entire transaction volume, but had to disclose the data of the sender and recipient. Thus, there was still the danger that by a review of past and future transactions, a calculation of the hidden transaction could be performed.

A different approach, taken by Monero, for example, introduced dummy transactions to increase security. Through these dummy transactions, more incoming and outgoing payments are recorded, so that tracking of the actual destination addresses is particularly complex.

Through these traceable transactions, it is still possible to find the users, meaning that in the last three years, around 62 percent of all transactions could be linked to the actual accounts. This is actually a positive value, as other tokens reveal 90 percent of the transactions.

Privacy of Zcash Coin

Contains the following two topics.

Hidden Transactions at Zcash Coin

Zcash Coin takes a completely different approach to data protection, and uses what is known as zk-SNARKs, which are also referred to as zero-evidence. This makes it possible to conceal the sender, recipient and the amount in the context of special transactions.

This procedure increases the amount of inbound and outbound transactions to each potentially protected address. As a result, attackers have more trouble tracking these transactions and assigning them to the appropriate account.

Fundamentally, however, it should be noted that not every transaction is equally secure, since older addresses, in particular, have a low probability of activity. In addition, the public transaction does not release any data, but a record can be derived from the timing and metadata.

Experts believe Zcash Coin's privacy is greater than any other public blockchain and that a certain risk of traceability will always exist, due to the transaction verification.

Public transactions under Zcash Coin

In addition to the encrypted transactions, the blockchain also offers transparent transactions that do not offer any private property rights. These are transactions that are performed on protected addresses that lack special features such as multi-signature wallets, or hardware requirements to generate a protected transaction.

The hardware has a mechanism to generate a protected transaction, as there must be a copy of the blockchain and at least 3GB of memory. Due to this, it is also possible that transactions can be traced back.

If an unsecured address is used in the transaction history, a derivation of the entire history can be created on the basis of the input and output data. In addition, Zcash users have the option to use selective disclosure, which allows third parties to view the completed transaction.

The intention behind this function is the prevention of money laundering and the simplified compliance with country-specific tax laws. Thus, the transactions can be audited, but this process is subject to the consent of the parties involved.

According to the founder of Zcash, this feature is particularly important because Zcash was not designed as an instrument for tax evasion and money laundering.

What is parameter generation in Zcash Coin?

Unlike other cryptocurrencies, Zcash relies on so-called parameters, which are used to create the monetary base. But parameters are a major disadvantage in terms of security, because they can be used to fake the currency.

However, this is only possible if the parameters (also known as toxic waste) are not destroyed after the transaction verification. The toxic waste poses no threat to the anonymity of the transactions and users, but may lead to quiet inflation and thus to a depreciation of the deposits.

To minimize this risk, a multiparty system was developed that required the co-operation of six people to manipulate the currency. Here Zcash CEO Zooko, Peter Todd (chief developer of Bitcoin) and four other developers worked together.

All parameters outside of a network were generated and then destroyed. For data transfer, only DVDs were used and the hashes of the content published.

What is the current market capitalization of Zcash Coin?

Zcash Coin's first trading day was October 29, 2016. The initial price per token was $4,293.37, resulting in a market capitalization of $1.38 million. A subsequent token increase led to a dilution of the token price, although the market capitalization was able to grow.

At the current time, the token has a market capitalization of $1.43 billion, with the price per token at $483.98. In daily trading, a volume of $123.8 million is being transacted.

The most important trading centers are Bithumb and HitBTC. In addition, most of the trading takes place with the Bitcoin token, though the USD and the KRW token also play an important role.


Passive income through Masternodes
Editor's recommendation: The Masternode Pool Club GetNode is the only provider of its kind. GetNode allows its members to participate in a unique masternode pool that is already over 100 Bitcoin in size. Through active management of the pool and constant purchase of new masters, GetNode has achieved very good results. So who ever wanted a passive income through Masternodes , here is the change. With a minimum of 1000 Euro or 0.2 Bitcoin a quick start is possible. The deposit can be made via Bitcoin or Euro. The payment is made automatically every two weeks via Bitcoin. We are even invested in GetNode with 1.2 Bitcoin and so far we are very satisfied with the results.

Leave a Reply

Your email address will not be published. Required fields are marked *

Bots can not vote

4.79 / 5 Stars
728 reviews for Coin-Report.net submitted.