ZCash (ZEC) is one of the top privacy-focused blockchain networks. At the time of writing, it is only the 23rd most valuable coin (according to CoinCheckup). But this currency has had one of the least terrible week on the market – it has gained 4% in the past seven days while most top-20 coins are into double-digit losses.
ZCash is also climbing in volume, becoming the 8th most-traded coin on HitBTC yesterday:
— Crypto Coin X (@cryptocoin_x) February 6, 2018
You’ll probably also notice that Monero (XMR) and Dash (DASH), which are also both focused on privacy, are higher on the list than ZEC.
So, how is this coin different from other privacy coins?
ZCash (ZEC) allows users to send transactions with their identities and values hidden from the public ledger. They do it through what they call shielded addresses, something that is achieved with their zero-knowledge proof construction, zk-SNARK:
“These constructions allow the network to maintain a secure ledger of balances without disclosing the parties or amounts involved. Instead of publicly demonstrating spend-authority and transaction values, the transaction metadata is encrypted and zk-SNARKs are used to prove that nobody is cheating or stealing.”
But with ZCash (ZEC), privacy is an option
Alongside shielded addresses, ZCash allows users to make their addresses transparent – effectively making the values of the transactions they send and receive public. It’s sort of like an on-and-off switch for privacy, so you can pick and choose when you do or don’t want to use that feature:
Verge (XVG) actually offers a similar feature, which it calls its Wraith Protocol. It’s essentially the same concept: you have a switch you can engage to make each transaction private or public.
But the lack of attention toward Zcash might hurt it
Sure, this coin is rising through the ranks, but it offers a pretty similar product to a number of other cryptocurrency options on the market. And, sure, sometimes we get stories like these:
— Barry Silbert (@barrysilbert) January 31, 2018
But, overall, there aren’t that many cryptocurrency news sites or popular social media accounts heavily covering this coin. The team working on ZEC doesn’t come close to other coins’ teams when it comes to hyping up their coin and gaining PR.
This coin has managed to have a better trading week than Monero (XMR), PIVX (PIVX) and Verge (XVG), but other than that – this coin isn’t really doing that much to stick out from the crowd. If top-10 coins start to offer the same privacy features, and are already more available on other exchanges, then we could soon forget about Zcash.
But who knows, this coin has a strong reputation and a solid price journey.
We are keeping our eyes on ZEC.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.