Review on Zcash by Fanuel PORPORTY
Zcash, an anonymous currency
Zcash (ZEC) is a cryptocurrency allowing both public transactions (like Bitcoin for example), but also anonymous transactions. This possibility of making a transaction anonymous or not is its main contribution to value. Zcash’s anonymous transactions are based on the zk-SNARK algorithm To keep it simple, these algorithms allow you to check the validity of information:
• Without having access to the information itself;
• Without the beneficiary of the transaction needing to interact with the issuer.
Zcash is based on the work of Professor Matthew D. Green on Zerocoin protocols and especially Zerocash, which are anonymizing protocols developed from 2013.
Zcash’s goal is to provide a version of Bitcoin that offers more discretion when it comes to transactions. The BTC has a pseudonymous transaction system, all the details of which can be found on its public blockchain. Zcash allows this type of pseudonymous transaction, but also allows for anonymous transactions.
Pros
- Improving transaction privacy through anonymity using the zk-SNARK algorithm - and the "optional" aspect of this anonymity - is Zcash’s main advantage.
- Thanks to anonymity, ZECs are fungible and interchangeable, unlike Bitcoin where it is possible to trace the history of each bitcoin, and know where it went.
- Only 21 million units: since there are no more ZEC units than bitcoins, this gives an idea of its possible valuation if a greater adoption of cryptocurrencies - and Zcash in particular - should take place.
Cons
- Hostile state reactions: this is a valid point for all anonymous cryptocurrencies. With states that want to suppress cash to be able to trace any transaction, not sure that these same states are not doing everything possible to repress this “digital cash”
- the anonymous crypto sector is very competitive, there are many projects that want to be the best in private transactions.
