Zcash is a new cryptocurrency that was launched on October 28, 2016. A Bitcoin clone based on the same code, but differs from this and Ethereum by the added functionality of totally private transactions. For that reason, Zcash is said to be ” impossible to find ”
To allow the transactions to be completely private, Zcash employs a technology of a branch of cryptography and computer science called zero knowledge test.
Even the world’s most intelligent mathematicians have described zero-knowledge tests as “impossible mathematics,” and only a handful of researchers around the world have a complete understanding of the details of how it works.
What is a zero knowledge test?
A zero knowledge test means that it is possible to show that a calculation has been made, without having to do it again. In other words, you can prove a true statement without having to reveal anything about it.
Zero knowledge tests make Zcash untraceable by creating private transactions. Zcash encryption hides the sender and recipient of such transactions, as well as the value of each of them. In this way, the only data that could be found in the blockchains is that they made a move at some point.
The addresses to which the Zcash is sent are completely anonymous, which means that if you do not know the real identity or the real address, you will not be able to see to whom or where the currency is flowing.
Who would want financial privacy?
There are a lot of cases of legitimate use of financial privacy. In fact, if we think about it, financial privacy is probably desired for most of the transactions taking place in the world, for example:
- A company that wants to protect information about its supply chain
- A person who does not want to be known publicly who is paying a lawyer to divorce
- A trading desk or other intermediary company between buyers and sellers of various products, who want to prevent them from finding out the trade.
- A rich person who does not want any criminal to see their activities and possibly try to extort for them.
How does the size factor work in Zcash?
Size is a scarce resource in blockchains or block strings. If you have a transaction that takes up half a Mb of space, you will increase the size of the blockchain to half a Mb.
That is, if you make 2000 transactions in two hours, you would already have a GB of space. Blockchains grow so fast that they would soon become a system that would consume many resources.
It is important to say that the Zcash team was able to optimize the size of private transactions to the point of making the system really usable, reducing to only about 1500 bytes per transaction.