Even though ZCash (ZEC) has been outplayed by Dogecoin (DOGE) in one of the most recent bull runs of DOGE in the matter of market capitalization, ZEC easily makes up for one of the rare cryptos among the top list that is actually showing some progress in the market on September 25th.
ZCash has earned its spot near top 20 list by a strong reputation of a privacy coin with a near flawless reputation of its ZEC’s zk-SNARKS technology, that might just help out with Ethereum’s issues regarding scalability.
One of the possible reasons why ZEC is seen in a wave of resistance on September 25th, despite the fact that the majority of currencies are dropping, is the case where Vitalik Buterin, the CEO of Ethereum, stated that ZCash’s zk-SNARKS could easily increase the number of transactions per second for ETH from 15 transactions that Ethereum network is currently able to support, to astonishing 500.
Moreover, if you are looking for a solid good privacy coin, should ZCash become your privacy coin of choice?
ZCash Brings “P” to Privacy: Is ZCash the Best Privacy Coin?
If you are looking for a way to hide your wallet address and make sure that no one can trace your transaction data, the most practical way of doing so, and possibly the only way of making sure that all your data is private on the blockchain, is to turn to a privacy coin.
The first generation of cryptos brought up an idea of moving money as fast as we are moving information today over the internet, however, with Bitcoin, just like with most currencies, including Ethereum as well, you can’t hide your transaction data as all info regarding your transactions is fully transparent.
What privacy coins like Monero and ZCash are offering is the possibility of keeping your transaction records totally private.
But how do you know which privacy coin to go for?
While Monero (XMR) is currently taking the spot of the tenth-largest currency by its market capitalization with a cap of over 1,8 billion dollars, there are some indicators pointing out at the fact that ZCash, ranked as 21st, might hold more value as a privacy coin when compared to the perhaps most popular privacy coin in the market, XMR.
For instance, Monero is related to a number of mining pools that are known for pulling in computing power from visitors of various websites without them actually giving consent.
Moreover, back during the 51% attack crisis where more than a few currencies were deeply affected alongside with revealing the by far unknown vulnerability to these notorious hack attacks, Monero suffered from more than a single 51% attack, also showcasing its own vulnerability that way.
Aside from vulnerability in Monero that was brought up to light during these attacks, ZCash poses as a serious competition to the established privacy coin by utilizing a far superior technology when it comes to establishing privacy.
While Vitalik Buterin has most recently reminded the crypto community on the importance and more importantly the functionality of zk-SNARKS that was also proposed as one of the answers for Ethereum’s scalability issues, zk-SNARKS also speaks in favor of ZCash as possibly one of the most functional privacy coins.
The Value of zk-SNARKS for ZCash and Its Privacy
To try and answer the question on the matter of whether ZCash might be anyone’s choice when it comes to using privacy coins, we need to reflect on the most important aspect of its technology.
What makes ZCash completely private and most of all safe is its technology zk-SNARKS. Based on zero-knowledge cryptography, zk-SNARKS is not only hiding transaction data from curious eyes, but it also removes any potential vulnerability from the system as it actually enables validating transactions without some otherwise crucial data.
This is why the info regarding your transactions is indeed hidden, which is not the case with Monero and its technology RingCT. Although RingCT is doing its job of hiding transaction data from the public, it actually works in a way that allows the system to mix up data received from both recipient and sender, so that it appears that one has established an ultimate privacy.
However, bits of that crucial information that Monero is said to be hiding can actually be tracked down by a motivated individual, which is not the case with zk-SNARKS and ZCash.
This makes a case that ZEC might be the best option for keeping your privacy and safety up to date in the blockchain space thanks to the unique and secure structure of zk-SNARKS, moreover having ZCash lonely in the latest rebound against the fiat and due to the most recent momentum regarding Buterin’s proposal.