This year, there has been a significant increase in demand for anonymous coins, which allow you to hide both the identity of participants andtransaction amount.ZCash is the second largest private network by capitalization with $1.4 billion. On May 11, the developers announced the upcoming 5.0.0 update, which caused the coin to grow by 37% from the local minimum in the following days.
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ZCash uses the zk-SNARK protocol, wheretransactions are encrypted, and zero-knowledge proof is responsible for the reliability of transactions. It allows one participant to prove to another the truth of a statement without disclosing any information beyond the statement itself. Simply put, transactions do not need to have all the information, and at the same time they will be checked to the right extent.
In the first zero-knowledge protocolsparticipants needed to go through several rounds of information exchange to confirm the validity of the statement. Now one message is enough for this, the length of the proof itself is less than a kilobyte, and it takes several milliseconds to check.
On May 31, there will be an update at block 1 687 104NU5, which includes the Orchard secure payment protocol and the Halo verification system. The update will open up the possibility of conducting confidential and secure transfers on mobile phones. According to ZCash founder Bryce Wilcox, NU5 is a historic step for all of humanity, as it moves zero-knowledge proof into a general-purpose technology.
Image source: twitter.com/zooko
Zcash is highly secure andrelies on the work of miners, like Bitcoin. However, Bitcoin is a public network that attackers can use to track wallets with large transactions in order to subsequently identify a potential victim. In addition, the sender can compromise himself in the case of transfers to "undesirable" persons. In ZCash, these risks are excluded.
In April of this year, it became known that one of theThe ZCash launch ceremony was attended by Edward Snowden. As an ex-employee of the US NSA said: "free trade is impossible without a free currency, and it is ZCash that brings us closer to this ideal."
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