Transaction data of most cryptocurrencies like Bitcoin are distributed on a public ledger that anyone can view. It is the rising concern over the privacy of most cryptos that paved the way for privacy-protecting cryptocurrencies. Zcash, Monero, and Dash are examples of such privacy-focused cryptocurrencies.
When it comes to choosing a privacy-protecting cryptocurrency, the major concern lies in determining the best. Is Zcash a better option than Monero and Dash? This is one such question that plagues the minds of most crypto users. In this article, we have compared Zcash with Monero and Dash to determine the better option.
Understanding Zcash and Its Privacy Features
Zcash is a private virtual currency that enables people to transact more securely and efficiently with low transaction fees. It was created and launched in 2016. The development of Zcash was based on intensive research of some of the best cryptographers from MIT, Johns Hopkins, Tel Aviv University, Technion, etc.
Zcash supports multiple transaction types, of which the shielded Zcash transactions ensure the utmost confidentiality. So, what makes Zcash one of the privacy-focused cryptos? Zcash transactions, particularly the shielded transactions, allow people to share addresses and transaction information selectively. Thus, users can selectively share the transaction details for regulatory compliance or auditing when required.
Development of Zcash
Zcash was a fork of Bitcoin. Although Bitcoin was the first cryptocurrency that gained popularity for its user anonymity, it did not offer much privacy. It was for this reason; Bitcoin was forked, leading to the launch of Zcash.
Zcash, alongside user anonymity, brings in the privacy element that is lacking in Bitcoin. The transactions are processed and verified much faster. Compared to Bitcoin’s 10 minutes transaction verification time, it takes only 2.5 minutes in the case of Zcash.
The Technology That Powers Zcash
Zcash algorithm also differs from that of Bitcoin’s proof-of-work hashing algorithm, which is SHA-256. That said, Zcash uses the zk-SNARK algorithm. Abbreviated as zk-SNARK, Zero-knowledge Succinct Non-interactive Argument of Knowledge is the technology that enables Zcash’s privacy protection feature.
Unlike Bitcoin, Zcash allows the users to choose between two different address options where they opt for either the public or the fully private address. The latter shields important information from the public, ensuring confidentiality. Nevertheless, there are other privacy-focused or privacy-protecting cryptocurrencies that were launched before Zcash. So, let’s compare Zcash with these major privacy-focused digital coins.
Comparing Zcash With Monero
Monero was launched in 2014 and is based on the CryptoNote protocol or algorithm, unlike Zcash, a fork of Bitcoin. Based on the type of algorithms used, Monero is trustless crypto compared to Zcash, which uses the zk-SNARK protocol. However, Monero is a privacy cryptocurrency by default, unlike Zcash, which allows users to either go public or private.
At the time of writing this article, the value of Monero (XMR) was $386, while Zcash (ZEC) was priced at $239. Apart from CryptoNote, Monero uses an obfuscated public ledger that enables anyone to broadcast Monero transactions. However, the viewers cannot find the source, amount, or destination of the transaction. Needless to say, as a fork of Bitcoin, Zcash is a more trusted private crypto coin.
Comparing Zcash With Dash
While Zcash is a fork of Bitcoin, Dash is a fork of Litecoin, which yet again is a fork of Bitcoin. Unlike Zcash, the Dash coin uses the X11 proof-of-work algorithm for hashing, which is believed to be the most effective and safe algorithm. At the time of writing this article, the value of Dash was noted at $239.
In terms of anonymity, Zcash is considered more anonymous as non-private transactions and using Dash can be traced. Also, Zcash is a direct fork of Bitcoin as opposed to Dash. Most importantly, Dash is not truly decentralized crypto.
|2.5 minutes block time
|Private crypto by default
|Trust and reliability
|2 minutes block time
|2.5 minutes block time
|Privacy and anonymity
|Fixed supply cap of a total of 21 million only
|Can be exchanged against many currencies
|Can be mined using only CPU
|Not a decentralized currency
|Can be exchanged against limited currencies
Is Zcash Still the Best Privacy Coin in 2021?
Zcash is a privacy-protecting digital currency owing to its zk-SNARK protocol. Zcash also provides its users the option to go either public or private. Dash and Monero are also privacy-focused digital coins that work on a different protocol, as explained in the article. In terms of efficiency, privacy, and user anonymity, Zcash is a better alternative as it is untraceable if the user opts for a shielded transaction. Click here to know more zcash price predictions for 2021.