According to Reddit user,‘zeroknowledge proofs’ Zcash has the potential to overtake Bitcoin (BTC) in both price and market value. While many in the crypto sphere might out rightly sideline the user’s views, he has some solid points which he shared with the subscribers of the Zcash sub-reddit.
The begins by outlining that Zcash has more utility in comparison to the world’s largest cryptocurrency by market capitalization, Bitcoin. Bitcoin utilizes the proof of work (PoW) consensus algorithm that has been said to be high energy consuming during the mining process. Moreover, the high transaction fees and centralized mining makes it very unfavorably as a digital asset for the future.
Bitcoin takes roughly 10 minutes to process a block of transactions and supports an average of seven transactions per second (TPS). There some other projects in the industry like Ripple which is capable of achieving 1,500 TPS while the blockchain developed by IBM has been tried and tested for 1,000 TPS.
Zcash, on the other hand,is a privacy focused cryptocurrency project that was built from the ground up and backed by science. The team behind the coin believe that the future of the financial system and money as a whole is in decentralized and private structures.Therefore, the transactions on Zcash network are encrypted end-to-end and shielded from public scrutiny as opposed to the transactions in Bitcoin, Ethereum, Bitcoin Cash among other coins.
It is essential to note that, Zcash has some resemblance to Bitcoin since the transactions are posted on a publicly accessible blockchain, however, while Bitcoin’s protocol leaves all the transaction details on the chain for all to see, Zcash public blockchain hides the identities and the transaction data from the public eye.
The protocol utilizes an algorithm referred to as Zero-Knowledge Proofs. This protocol allows the normal processing and verification of transactions. However, the sender’s/receiver’s/transaction figures remain private. There is an addition feature that is called selective disclosure where a user can choose to allow certain data for the purpose of audit or even compliance. It also takes into account the need to have transparent transactions for platforms that do not have support for anonymous wallets and tokens.
“ZEC is a darkhorse that will rise if it continues to have the low fees it has now. Once T addresses are done away with, ZEC will be like a blackhole virus that cannot be stopped. It will truly change the world. We just need to ensure mining does not become centralized like BTC has now with jihan wu and his mining cartel,” the Reddit user explained.
The cryptocurrency industry has finally embraced private coins. Governments still have questions when it comes to anonymous transaction due to the fear of money laundering activities, tax evasion and other illegal activities. The Financial Services Agency (FSA) already ordered the delisting of privacy focused coins from Japan-based crypto exchanges. Other governments around the world still ignore the issue of virtual currencies.
However, this Reddit user believes that Zcash has a massive potential and it will rise above Bitcoin(BTC) to become the face value of digital money.
Zcash (ZEC) is trading at$54 and is slightly in the green. It has a market cap of $297 million and a 24-hour trading volume of $109 million. Zcash is ranked the 19th largest asset at the time of writing. Bitcoin (BTC) on the other hand, is trading at $3,426. It is slightly in the red having a 24-hour exchange volume of $3.9 billion and a market capitalization of $59 billion.