Most of the cryptocurrencies in the market are pseudonymous in the sense that you are not directly exposed to the public when using them. However, you can still be traced through blockchain forensics and data science using your public address or addresses. ZCash is built differently and it emphasizes providing optimum anonymity to users unlike Bitcoin and other cryptocurrencies.
So, what is it about the ZEC token that is to be excited about? In this beginner’s guide, we will take a look at the ZEC coin and how to exchange the ZCash digital currency for other cryptos and vice versa on Swapzone.
The watchword for ZCash is anonymity and privacy, which is why the ZCash technology uses zk-SNARK. zk-SNARK is a zero-knowledge proof technology that prevents the exposure of sensitive data as network nodes process these data during a transaction. This differentiates ZEC from other pseudonymous cryptocurrencies.
Although, the transactions on ZCash still pass through a public blockchain. However, the zero-knowledge proof ensures that by default, the amount sent, the addresses that sent or receive the ZEC coin are not revealed. Only in the case of regulatory compliance or auditing will these data reveal.
The ZEC crypto went live on October 28, 2016, the ZCash chain was initially built using Bitcoin’s codebase.
ZCash coin is built to be better equipped than the coin on which it was modelled, which is the Bitcoin. It processes faster and it is cheaper too at the same time available on popular exchanges and supported by major wallets.
The key appeal around ZCash value is the privacy it affords users through private addresses and transactions. This way, you can send or receive payment without disclosing the details about you or the transaction. For good-minded folks that value their privacy, ZCash ZEC often appeals to them. All the same, the protocol also has transparent transactions and addresses.
In the case of auditing or a regulatory breach, ZCash users can disclose their addresses or transactions for the sake of compliance. This portrays the protocol as also being security conscious despite the preaching and hammering of protecting users’ privacy.
Just like many other blockchain protocols, ZCash is a decentralized network that has no central base for data making hacking extremely difficult for attackers. Instead, several network nodes are handled by machines and people maintain the network.
The founder of ZCash is Zooko Wilcox who has more than 20 years of experience in the blockchain industry with knowledge in cryptography and information security as well as decentralized systems. However, scientists from the prestigious John Hopkins aligned with the team from MIT have been working on the ZCash chain as far back as 2013. They were not the only ones though as there were contributions from Tel Aviv University and UC Berkeley.
The ZCash protocol was launched in 2016 initially as the Zerocoin protocol and the name changed to Zerocash before it eventually became ZCash. The ZCash founder Zooko Wilcox also formed the Zerocoin Electric Coin Company in 2014 before announcing the launch of the ZEC token in 2016. The ECC team has notable names among its list of advisers which include the co-founder of Ethereum Vitalik Buterin, popular Bitcoin developer Gavin Andresen, and Arthur Breitman the creator of Tezos.
Just as we have it in other cryptocurrencies, ZCash can be used to make or receive payments using ZEC coins. As these transactions occur they are recorded to the blockchain by mining new blocks.
However, with ZCash you can choose to encrypt your data during transactions, which makes your data invisible to participants in the network. The process uses the zk-SNARKS technology to achieve this. The cryptography team of ZCash developed this ZCash technology. This helps prevent the occurrence of double spending and proves that nobody has cheated or stolen.
On the ZCash protocol, you can choose to make your transactions private or transparent. Transparent transactions allow the details of the transactions to be visible and it is easy to know from the wallet address if the transaction is transparent. The wallet address will begin with “t” and this type of transaction is just similar to Bitcoin.
For private transactions, the transaction details are shielded for enhanced privacy using the zero-knowledge proofs. In this type of transaction, the wallet address will start with “z”, which means it is encrypted.
You can send payments from both types of addresses to each other, which means you can send payment from a transparent address to a shielded one and vice versa. Also, ZCash supports any type of transaction done on the Bitcoin network.
Even though the transaction can be made private on the ZCash chain, you can still give access to a third party to view your transactions via the dual-key feature. It is crucial for the sake of regulatory compliance and auditing.
You can use the View Key to allow third-party access to your private addresses while you use the Spend Key when you want to spend your funds on the ZCash protocol.
As of July 2, 2021, the ZCash coin is trading at $115.01 with a verified circulating supply of 12,117,981.25 ZEC coins. It currently ranks 59 on CoinMarketCap with a market cap of $1,393,740,147. The ZCash value has seen major ups and downs in the crypto market reaching an all-time high of $5,941 on October 29, 2016, before dipping to a record low of $18.94 on March 13, 2020.
You can easily buy ZEC tokens through exchanges as the coin is listed on popular exchanges around the world. ZCash exchange rate will differ per token, for example, the rate for BTC/ZEC will be different from the rate of USD/ZEC, etc. Nevertheless, you need to pick an exchange to buy the coin from and register on its platform if you don’t have an account yet.
Swapzone is a good place to get ZEC coins as you can exchange ZEC tokens from the list of listed pairs. What Swapzone does is aggregate ZEC exchanges where you can convert to ZEC token by giving you the best rates from various available exchanges.
Before concluding this piece, you should now have an idea of what is ZEC and how to exchange it via Swapzone. This unique token is among the most popular privacy-focused tokens. Similar tokens to ZEC include Verge (XVG), Monero (XMR), and PivX (PIVX). However, one thing that stands out for ZEC is the ability to send private and transparent transactions.
An exchange rate is the rate at which one cryptocurrency can be exchanged for another through a certain crypto exchange provider. Cryptocurrency exchange rates on Swapzone reflect current prices of crypto assets and are updated every 30 seconds for you to keep track of any market changes and fluctuations to profit when buying the dip or going with the best exchange rate and the lowest exchange fees. All cryptocurrency exchange providers have their own rates, which depends on supply and demand, mining rewards, costs and so on. See what else might affect the rate in our article on prices.
There are two types of exchange rates aggregated by Swapzone – fixed rates and floating rates. To receive the exact amount of crypto that is displayed at the beginning of the exchange and shield yourself against the market's volatility, opt for fixed-rate offers. If you're ready to take a risk and receive less or more than the sum displayed, go with floating-rate offers but bear in mind that floating rates may drastically change any second. You can refresh your memory on how to get the best exchange rate here.
Crypto transaction fees may vary depending on the network (Ethereum transaction fees tend to spike during the congestion on the network), your chosen cryptocurrency, an instant exchange provider as well as its transaction processing speed and internal policy. These fees may be relatively low but it’s crucial to know they may be imposed in the first place.
If you want to exchange cryptocurrency with the lowest fees, beware of the offers with a grey-colored “Transaction fees are not included” label displayed under the exchange rate. To avoid having to pay an unexpected amount of fees during the exchange, opt for those that do not have that label. Read our articles to learn more about how to exchange cryptocurrency with the lowest fees and find out which assets have the lowest transaction fees.
Transactions usually take from 5 to 30 minutes to be processed, especially if you choose currencies with speedy networks. However, there are several factors that may affect and slow down the exchange process, i.e. transaction volume, blockchain capacity, network updates, cryptocurrency itself and the capacity or chosen exchange platforms.
The processing may take longer due to the large transaction volume, congestion of the network, blockchain overload and market overload, technical issues or system failures, lack of liquidity or network maintenance.
The transaction may be also stuck if you forget to add a required Extra ID, mistake networks or use the wrong wallet for a chosen crypto asset. If you worry that the exchange processing is taking too long, please, contact us at [email protected] or via our live chat on the landing page.
To exchange, buy, sell or trade cryptocurrency and store your crypto keys safely and securely, you need a crypto wallet. Choosing the best cryptocurrency wallet is a question of preference and need. To learn more, read our guide on how to choose the best cryptocurrency wallet for your needs.
There are several types of wallets for different crypto assets and tasks. Software wallets, or hot storage wallets, are connected to the Internet and come in many forms: Web, Desktop, Mobile or Browser Extensions. If you want to build a large crypto portfolio, you might want to look at multi currency wallets like Exodus, MetaMask, TrustWallet, Atomic or Guarda. If a coin or a token of your choice isn’t available there, you can always opt for a single-currency wallet that is usually designed by the project that launched the asset.
If you take safety and security matters seriously, go for hardware wallets, or cold storage wallets, like Ledger or Trezor, or even paper wallets. We strongly recommend you to do your research before creating a wallet: read the reviews to see what the community thinks, learn about the fees a particular wallet imposes for performing transactions, check out supported currencies and networks and see its security policy.
There are loads of different crypto exchange services, with new platforms emerging every month. Exchange providers differ by supported currencies, liquidity providers, fees, customer support, user interface, level of privacy and anonymity and customer support, which makes it hard for beginners to understand which one to choose. To learn more about what these exchanges offer and how you can assess them, read our guide on how to choose the best exchange platform.
To navigate them through the field full of services, we conduct research and thorough analysis of the market & list both prominent and promising exchange providers, keeping in touch with their teams 24/7. We give you all the necessary data on the offers they provide as well as their brief history, KYC/AML policies, reliability and advantages, while also indicating their downsides so that you don’t have to do that yourself.
Swapzone is an instant non-custodial cryptocurrency exchange aggregator that helps users make an informed choice when exchanging crypto assets. To make this possible, we gather the information on the exchange providers, select the parameters for comparison, aggregate and sort available deals & give an option to make a swap through providers' APIs in the same interface with a common user flow for every exchange. Still have doubts? Here's 9 reasons why you should use Swapzone to exchange crypto.
Learn how to exchange cryptocurrency with the lowest fees or zero fees as well as how to find the best crypto exchange rates and choose the safest cryptocurrency exchange provider.