Note From Kalen: This article does not necessarily reflect my opinion on crypto or ZEC, but I hope it gives you more understanding about this new type of crypto.
When cryptocurrency came on the scene with its blockchain technology, it was totally amazing and it looked like a system that was hack proof had finally been created and indeed it was and pretty much is as far as we know.
This is because of the open ledger system upon which it operates which practically makes it impossible for a currency to be duplicated or transaction altered.
However, this same thing that powered its uniqueness became the source of concern for many as there was absolutely no privacy. The open ledger system makes transactions open to all. So while keeping things transparent and above board, it also made it impossible for individuals to enjoy some privacy in their transactions.
To correct this, other cryptocurrencies were created and one of these is the ZCash also known as ZEC.
What is ZEC?
Zcash started in 2016 as Zerocoin protocol and then became Zerocash system before changing one more time to Zcash. It was founded by Zooko Wilcox, the CEO.
It is among the top cryptocurrencies that promotes privacy. Yes, it operates on the usual decentralized system that other cryptos operate on which allows information to be held by many rather than at a point. However, using special cryptography, it at the same time offers complete user privacy which is something that other cryptos like bitcoin do not offer at all.
With ZCash, users can decide just how much information they want to make open. A user can decide to leave their transactions open or they can choose to totally shield it. They can also reveal some information while shielding others. Simply put, it gives the user total control over how they choose to share the details of their transactions.
The way it achieves this is through the use of zero-knowledge proof constructions known as Zk-Snarks which is an acronym for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. If you are really interested in the technicality of how this system works then read this extensive explanation in this article.
Where Can I Use ZEC?
The value of a crypto currency is hugely tied to the level of acceptance it enjoys. While Bitcoin is the obvious granddaddy of cryptocurrencies, Zcash is also growing in popularity especially as a result of the added benefit of anonymous transactions that it offers.
You can spend Zcash on a number of sites today. For mobile users, Jaxx wallet supports ZEC so you can use it for transactions. You will also find a number of Virtual Private Networks (VPNs) that have accepted payments using Zcash again because of the anonymity that it offers.
For an extensive list of where you can use this cryptocurrency for payments check this link: https://www.zcashcommunity.com/pay-with-zcash/.
How to Exchange ZEC
This is where many cryptos have issues especially with regards to converting straight to fiat. While many will offer exchanges to other popular cryptos like bitcoin and ethereum, converting to fiat can be a bit more difficult.
By the way, converting to fiat simply means converting the crypto to its equivalent value in dollars, euros or other physical currencies.
There are two ways you can go about exchanging ZEC. You can either use other cryptocurrencies like bitcoin or you use an international currency like the U.S. dollars.
Needless to say, the former is a longer route which requires that you first purchase the more common cryptos and then use them to exchange for ZEC. If you have some Zcash that you wish to convert to fiat, then using this same route is going to cost you more in fees.
There are fees associated with cryptocurrency transactions therefore when you have to convert from one crypto to another crypto before finally converting to fiat you will likely have attracted more fees which will of course eat into your profit.
The more sensible option which sadly is not on offer everywhere especially with regards to ZEC exchanges is the direct purchase with physical currency via credit or debit card and direct conversion to fiat. This will eliminate the additional fees that would have been paid for converting first to a different crypto.
You can click here for a way to buy Zcash with USD.
ZEC or Zcash clearly offers value that many other cryptos do not offer. This ability to control how much information regarding any transaction will be revealed is sure to appeal to folks who do not like their business being a public matter.
This singular feature and the impact it will have on how businesses can transact with themselves and individuals is sure to continue to fuel the growth of this cryptocurrency. It currently has about 7.08 Million coins in circulating supply and each coin is currently valued at about $67.45.
This value is almost certain to continue to rise, making this a good crypto to invest in now.