Cryptocurrency Zcash (ZEC) is an open source project developed by Zerocoin Electric Coin Company, built on the zk-SNARK cryptographic protocol, which provides the highest level of privacy.
Zcash is based on the Bitcoin code, the issue is limited to 21 million coins, Mining-Proof of Work algorithm. There are two types of addresses on the network:
– transparent addresses, starting with the letter “t”, in fact, these are the same addresses as in the bitcoin network;
– hidden addresses that start with the letter “z” and are protected by zero-knowledge proof.
The user himself decides what type of addresses to use, it is possible to send funds between transparent and hidden addresses. For hidden addresses, the blockchain confirms transactions, but no information is left on the network about the sender, recipient or amount of the transfer. Thus, maximum anonymity is achieved.
The Zcash network was launched in October of the 2016 year after almost 4 years of development. The project was financed by private investment. ZEC emission is built in such a way that 10% of all coins will fall into the “founders” wallets, this is the code name of investors, developers and employees of Zcash.
The presence of a bonus for the founders of the cryptocurrency outraged part of the community, therefore, 8 days after the launch of Zcash, the hardcore ZClassic was produced. The only difference between the “forks” is that the miners keep all mined coins for themselves, without transferring anything to the “founders” account.