Bitcoin has been a market leader since its inception, and until a few years, it had very little competition. However, The Bitcoin users had to bear some of the flaws of this digital currency until the founder of ZCash launched an alternative to Bitcoin that could fix its flaws. Irrespective of whether you are a long-term user or a first-timer in this market, it is better to know about each of these currencies and their differences.
Cryptocurrency became popular in the financial world due to the blockchain visibility it provides. That prevents people from double-spending coins. In a Bitcoin transaction, there is a lack of privacy in terms that the transaction history can be viewed, and so is the balance of the specific user in their wallet. With some research, you can link the true identity of the user with the personal details. If you are looking for a ZEC vs BTCcomparison, the above-mentioned holds true.
In contrast to Bitcoin, Zcash uses ‘Ak-SNARKS’ to confirm the transactions without revealing any personal details. It not only prevents double-spending but also ensures the privacy of the user by keeping the identity safe. It also has many other privacy features for additional security.
The Zcash mining reward currently is at 12.5 per block. Though Bitcoin also has the same reward for a block, the Zcash vs BTC values are totally different. There is a cap set at 21 million for both coins, and after 4 years, the reward is cut to half. The reward is also reduced after 840,000 blocks are mined.
The process of mining is different in Bitcoin and in Zcash. The mining in Bitcoin is decentralized, and a public ledger is used to verify the transaction. It uses the blockchain technology to confirm the transaction in the ledger. On the contrary, Zcash mining is open-source cryptocurrency. There is no third-party involvement in transactions, and all the transactions are encrypted, hence safer compared to Bitcoin.
Bitcoin used the revolutionary blockchain, which is a distributed ledger technology. But despite using this powerful technology, it has very low transaction processing speed. To overcome this challenge, Bitcoin made the block size bigger so that more data verification can happen at a time. But despite that, it has been unable to compete with Zcash with respect to the block size. Zcash has a block size of 2MB, whereas Bitcoin has 1MB. Even the average block time for Zcash is better as the transaction confirmation happens in about 2 minutes. The Bitcoin takes up to 10 minutes to confirm the transactions. That makes Zcash transactions more scalable, faster, and cheaper.
The hash algorithms used by Zcash and Bitcoin are completely different. While Bitcoin uses the SHA-256, which has many disadvantages, like making it slow. It is also considered more vulnerable to transferrable state attacks.
Zcash uses EquiHash, which is a proof-of-working algorithm. It is a memory-oriented technology, and anyone with a machine of even 1 GB free RAM can mine cryptocurrencies. It also helps in maintaining the privacy and anonymity of transactions.
When it comes to Zcash vs Bitcoin investment, Zcash has received support in the market, and on the first day of its launch, it was at $4,000 for a coin. Due to its similarity in terms of design and better privacy features, Zcash is becoming a popular alternative for Bitcoin. Additionally, Zcash is implementing smart contract features as added functionality, which can take away the first to market advantage of Bitcoin if it does not act soon.
Bitcoin adds great value to your asset and portfolio, and Zcash provides full anonymity of transactions. Each has its fair share of advantages and hence choose one based on your preference.
Zcash is implementing smart contract features as added functionality.
Yes, Zcash has a high potential for success.
Bitcoin is the most popular cryptocurrency and tops the list as per teh market capitalization. Zcash is not far behind as it is one of the top 30 cryptos in the world.
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