Zcash (ZEC) is a cryptocurrency with the utility of Bitcoin but with faster transactions, scalability, and high privacy features. It might not have been a very popular cryptocurrency like Bitcoin, but it has some unique features that tempt investors to know whether Zcash can be a millionaire-maker.
Zcash is one of the best alternatives to Bitcoin and is one promising token with a high anonymity level. ZEC has seen a significant variation in its price range since its initiation in 2016. It has an increase of over 437% from the beginning of 2020 to March 2021. The price of ZEC in January 2020 was almost $27.66, while today, its price is $115.
Known as the 'leading privacy coin,' let's see what Zcash has for the future and its uniqueness in other cryptocurrencies.
Why Is Zcash A Unique Cryptocurrency?
ZEC's uniqueness starts from the fact that it is a successful fork of the original Bitcoin code and was designed to solve the issue of privacy and scalability that Bitcoin couldn't achieve. Though Bitcoin was a favourable option for many, it was an open-book where all the transactions were available for everyone to see. Anonymity was not an option for Bitcoin users. Though not explicitly, the public addresses provided to each user are easily trackable with technology.
Therefore, Zcash was created with a vision to facilitate a blockchain that allowed people to send and receive funds with the leisure of anonymity. All the data, address, and transaction history are encrypted carefully with Zcash. Like Bitcoin, it is built on a decentralized, open-source blockchain network and has a limited number of 21 million coins.
The significant factor of Zcash is that it has a low-rate transaction while the transaction rate is much quicker and more scalable than Bitcoin. ZEC hides the identity of both the sender and receiver. While it also provides users the liberty of choosing. For instance, if users want to share their address and transaction information, it provides an option to select to comply with audits and regulations.
Read More: Zcash Price Prediction Forecast
What Makes Zcash A 'Leading Privacy Coin'?
Well, thanks to its science-backed technology, Zcash is popularly known as the 'privacy coin' in the crypto market. The advanced technology behind ZEC that facilitates anonymity and increases privacy is Zero-Knowledge Proofs or zk-SNARKs. This unique mechanism allows users to validate transactions without disclosing any information that might affect the user's privacy.
Zero-Knowledge proof, as the name resonates, verifies transactions without the need for exchanging passwords. Most importantly, what ZEC offers is optional anonymity. There are two major ways of ZEC transactions. One is a Transparent transaction akin to Bitcoin that is sent between public addresses and is recorded on an immutable public ledger. But here, an outsider can only have access to the public addresses and not the original user identity.
The second one is the Shielded transaction, which facilitates complete anonymity and privacy in transactions by deploying the zk- SNARK protocol. Though the proof that transactions have happened is recorded in the ledger, the user information, amount, and address are completely secured from public access.
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Where Does Zcash Stand Today?
Though Zcash offers all the advantages of decentralized, permissionless digital currency with the complete right to privacy, it still ranks 59 in the CoinMarketCap ranking. ZEC has a market cap of $1.8 billion currently, with a price of $139.40. It has a limited number of 21 million coins like BTC and currently has a circulating supply of 13,519,668.75 ZEC coins.
Well, analyzing Zcash, we can see that it performed tremendously well in 2016 when it was created, with a price of $1,442.42 as of October 2016. Further, it even hit an all-time high of $5,941.80 on October 29, 2016. But, the coin has seen a huge decline after that and has gone down to a relatively low price today.
But predictions say that ZEC is still worth over $1 billion and will eventually soar higher with future developments to its blockchain technology.
Could Zcash Be A Millionaire-Maker?
Zcash has partnered with major financial institutions like JP Morgan, which will eventually increase its value in the future. JP Morgan is interested in installing the Zero-Knowledge Proof protocol into their blockchain project. Such an institutional interest from an established and huge company will eventually provide value and credibility to ZEC.
Being a highly secured cryptocurrency with low-rate transactions, optional anonymity, transaction expiration, and various signatures for transactions, Zcash hopes to become a global payment system for people worldwide. There is a good chance of a slow and steady increase in ZEC's value and price in the foreseeable future, making it the best for a long-term investment.
Check Out: Zcash Price Prediction Forecast
The Bottom Line
Despite all its ups and downs, Zcash seems to be a good option for investors if they are looking for future returns.
One significant factor that could make Zcash a millionaire-maker is its privacy feature itself. Though there are various cryptocurrencies with high scalability and security in the market, Zcash still leads to be a crypto asset with high-defined privacy features and transaction mechanisms.
If, in the future, the developers of this scientifically-backed cryptocurrency make advancements in its network or introduce novel ideas, Zcash has the potential to be a millionaire-maker.