The world of Cryptocurrency is expanding fast with technological advancements. There is a countless number of virtual coins any new trader would choose to freely invest in. This even gets better when two major players merge to form one virtual coin.
At the start of this week, Bitcoin Exchange Gemini, which is owned by Internet entrepreneurs Winklevoss twins announced to the amusement of virtual traders that they would introduce an additional virtual coin called Zcash from May 22nd this year. After the announcement, the price of Zcash quickly went up by 40 percent to settle at 360 USD from 250 USD.
Gemini is a US-based Cryptocurrency exchange that operates on a smaller scale compared to the other big exchanges but also competes fairly well. Currently, Geminis exchange platform only allows users to exchange the two common Cryptocurrencies, Bitcoin and Etherum. The addition of this new coin Zcash is a good start and indicates the confidence Gemini has in its future performance.
What You Need To Know About Zcash
Zcash is originally designed and maintained by Zerocoin Company. It has features that are a lot more similar to Bitcoin. First, its design is entirely placed on Blockchain technology that makes it robust and able to mine. It is a digital currency just like Bitcoin or any other virtual coins available in the Cryptocurrency market.
However, one feature of Zcash stands out – privacy. Eric Winer, Geminis VP of engineering explained that unlike Bitcoin, Zcash enables users to conceal information about how much money a transaction carries. The users can also choose to hide their identity if they so wish. Information about transactions remains private between the transacting parties just like in FIAT money.
Bitcoin, on the other hand, maintains a definite data of all transactions carried out. This means that all the transactions under bitcoin are transparent to all the miners in the Blockchain. Miners cannot, therefore, shield their activities from other users.
Currently, there exist roughly about 3.9 million Zcash coins successfully mined globally. There is, however, a slight variation of how the mining of Zcash is done compared to Bitcoin. When Zcash coins are mined, part of the proceeds directly goes to the company as income generated. These proceeds are then used to fund the company’s daily operations such as paying its engineers.
It Costs Less To Make Transactions On Zcash Blockchain
There have been concerns about the cost of transaction incurred on a single transaction using Bitcoin’s Blockchain. During the high season in December last year, the cost of a single transaction costing 1 USD was averagely 55 USD in mining fees. It is therefore not realistic to make small purchases because they are relatively expensive.
This is however not an issue with Zcash because of its relatively fast mining and is mined in larger Blockchains compared to Bitcoin. Jack Gavigan, CEO of Zcash company explains that mining one block of Zcash will require averagely 2.5 minutes compared to bitcoin’s 10 minutes per block. This makes transactions less expensive because it is mined more frequently.