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John McAfee is not only a successful IT entrepreneur, but was also an expert in crypto currencies for a while. With a single tweet, he was able to raise or lower prices. In his assessment, he attached particular importance to data security and privacy. In a now legendary tweet he wrote: "Coins like Monero (XMR), Verge (XVG) or Zcash (ZEC) can't lose".
In the meantime, it has become clear that he was not quite right with this assessment. Nevertheless, it's worth taking a closer look at Zcash. After all, the currency rose to dizzying heights immediately after its foundation: A token was worth several thousand bit coins for a short time.
The strange emergence of the Zcash coin
At the beginning of the digital currency there was a ceremony - which is basically rather unusual. A total of six people took part, two of whom still do not know their identity. In order to carry out the ceremony, a prescribed program had to be installed first and then a number of work steps had to be carried out. The result: several public and private keys were created. The public keys still form the basis of the ZCash coin today.
The private keys, on the other hand, were to be destroyed during the ceremony - one speaks of cryptographic garbage. But there is also a danger here: if the participants did not adhere to it, they could create a kind of masterkey and secretly produce more tokens with it. Apart from that, the number of tokens is limited. Inflation is not planned.
The initial popularity of the Zcash coin was also related to the development of the Bitcoin. On the one hand it became more and more popular. On the other hand it became more and more known that the transactions are not completely anonymous. Rather, all relevant data can be read out by analyzing the blockchain. The individual payment transactions are also publicly stored in a block chain in the ZCash coin.
However, sender, recipient and amount are encrypted and thus made anonymous for third parties. This protective device can also be circumvented under certain circumstances. However, this is much more complex than with many other crypto currencies. Developers use this advantage to attract investors.
Zcash is a conservative innovation of the Bitcoin
In general, the Bitcoin is now the reserve currency for all non-governmental payment units. However, the similarities between the Zcash coin and the Bitcoin go even further. The makers describe their approach as "conservative innovation". This means in concrete terms: The Bitcoin code was simply adopted - unless the developers had an idea for improvement.
Many personal details are also identical: At the beginning, the team behind Zcash was recruited almost exclusively from Bitcoin activists. Initially, it was even planned to integrate the Zerocoin protocol into Bitcoin. But especially Bitcoin core developer Peter Todd was very critical of the request - which is why the initiators finally started their own project. There were also changes in the mining algorithm and the mining difficulty. In addition, a levy of ten percent of the proceeds was introduced, which goes directly to the developers.
The transactions can be subsequently disclosed.
With the Zcash Coin the private transactions are basically anonymous. However, it is possible to disclose them to certain other participants afterwards. The prerequisite for this is that all persons involved give their consent. This function was introduced to enable users to cooperate with state authorities. Accordingly, Zcash founder Zooko Wilcox repeatedly emphasizes that the crypto currency was not designed to support illegal activities.
This cannot be prevented completely however naturally. The developers of the anonymous Monero coin, which has since enjoyed great popularity on the Darknet marketplace AlphaBay, also had to make the same experience. Also the Zcash coin cannot prevent the use in Darknet.