Zcash (ZEC) is one of the most famous and popular privacy coins. Privacy and anonymity are at the heart of this unique cryptocurrency. However, Zcash has already had some ups and downs – is it still worth investing? ZEC is currently trading around 96% below its all-time high. An entry could be enormously worthwhile if the coin succeeds in returning to its highs. We say: What is Zcash (ZEC)? What are the advantages of Zcash (ZEC) over other privacy coins? And what are the Zcash price forecasts, such as the ZEC 1-year price forecast or the ZEC 5-year price forecast?

Buy ZEC on eToro now

What is Zcash (ZEC)?

Zcash (ZEC) is a cryptocurrency focused on anonymity and privacy. It was released in 2016 and uses a technology called zk-SNARK zero-Knowledge-Proofs. This makes it possible for nodes in the network (so-called nodes) to verify transactions without revealing sensitive information.

Bitcoin (BTC), for example, is not anonymous, but merely pseudonymous: the cryptocurrency does not explicitly disclose the identities of its users – but each user has their own public address or addresses that can be traced using special methods and blockchain forensics.

With Zcash (ZEC), this is different: By default, neither the address of the sender nor that of the recipient is shown here. If necessary, however, these CAN be disclosed.

What are the advantages of Zcash (ZEC)?

The main advantage of Zcash (ZEC) is optional anonymity. ZEC transactions can be sent in two ways: transparent and shielded. Transparent transactions work in a similar way to Bitcoin: they are sent between public addresses and recorded on the blockchain. All information about these transactions can be viewed online.

Although these transactions do not directly reveal the identity of users. However, due to the efforts of data scientists and law enforcement agencies, blockchain analysis has now become so advanced that public addresses on a blockchain can be connected quite reliably to the real identity of a user.

To prevent this, ZEC uses shielded transactions. These use the technology of “zero-knowledge succinct non-interactive arguments of knowledge” – or abbreviated zk-SNARKs, with which completely anonymous transactions are possible. Although it is recorded on the blockchain THAT the transaction took place – but not from whom it comes and where it goes.

How does Zcash (ZEC) differ from e.g. Monero (XMR)?

There are several ways to protect privacy with a cryptocurrency. Zcash (ZEC) takes an innovative approach: in a fully shielded Zcash transaction, the sender, recipient, and amount are fully encrypted and completely private.

These shielded transactions protect financial privacy by making it harder to link transactions together.

Projects such as Monero use so-called ring signatures for this purpose. They cover up the sender and the recipient. However, Monero only hides the transaction amount – but not the transaction graph. However, various forensics and analytics companies claim that they are able to track these types of transactions. For example, the blockchain analysis company Ciphertrace wants to be able to track Monero transactions with patented software.

Zcash (ZEC), on the other hand, hides both the transaction amount and the transaction graph.

In addition,: The sword of Damocles of regulation is always hovering over privacy coins-after all, the technology must fit into a regulatory framework. If it does not, the regulatory threat may be imminent and the coin will be banned or only listed on a few exchanges. Zcash (ZEC) has the advantage of being offered by regulated exchanges as well. The US exchange Gemini, for example, has announced support for so – called shielded withdrawals-i.e. shielded withdrawals in which anonymity is maintained.

Is Zcash (ZEC) really completely anonymous?

Yes. Zcash (ZEC) improves privacy by encrypting sender, amount, and recipient data within single signature transactions. However, Zcash does not encrypt data for multi-signature transactions and does not protect against correlations with public transactions (e.g. when Zcash is traded into / from another cryptocurrency). Also, Zcash does not obfuscate IP addresses.

What are “transparent Zcash addresses”?

As mentioned, Zcash (ZEC) offers shielded transactions that do not allow conclusions to be drawn about the sender and recipient or the amount. However, Zcash users can also access transparent Zcash addresses. These start with ” t ” and work similarly to Bitcoin addresses: they display addresses and balances on the blockchain. Addresses starting with “z”, on the other hand, are called shielded addresses: they contain improved privacy through zero-knowledge proofs.

By the way: It is possible to move ZEC back and forth between these two address types.

Who invented Zcash (ZEC)?

Zcash (ZEC) was founded in 2016 by a computer security expert named Zooko Wilcox-O’Hearn. He has been working in the crypto and IT industry for more than 25 years, including projects such as DigiCash and the peer – to-peer data storage software Mojo Nation. Wilcox-O’Hearn was also co-inventor of the cryptographic hash function BLAKE3.

Wilcox-O’Hearn is also the founder of the technology company “Least Authority Enterprises”. Its focus: improving digital security and safeguarding the fundamental right to privacy.

“Zooko”, as he is called in the crypto community, has also founded the” Electronic Coin Company ” (ECC). Which manages the development of Zcash.

What is the Zcash Foundation?

The Zcash Foundation is a non-profit organization for the further development of the Zcash protocol. Initially, the Zcash Foundation was funded by a donation from Zcash stakeholders. Since the activation of the Canopy upgrade, the Zcash Foundation receives its funds from the “Community Development Fund”.

Zcash – ZEC) – what does the future hold?

Zcash (ZEC) is based on robust, innovative technology and is also one of the best-known cryptocurrencies in the top 100. Many analysts also assume that privacy-oriented coins will have a strong influx in the future. In addition, the US Treasury Department of Companies from 2023 requires reporting cryptocurrency transfers of $ 10,000 or more to the IRS (Internal Revenue Service, the federal tax agency of the United States). Developments like this could change the course of a privacy coin like Zcash drive up enormously.

Zcash Price Forecasts 2021-2028

What are the ZEC price forecasts? ZEC is currently trading at $ 124.68, down 96.1% from the all-time high of $ 3.191 reached on October 29, 2016, according to Coingecko. Is a return to these highs possible?

  • CoinCodex.com is generally neutral at Zcash: 19 technical analysis indicators give bullish signals, 10 bearish signals.
  • Long-term price losses forecast LongForecast.com. The forecast model’s tendency to be cautious sees Zcash initially rising to $ 146 by the end of 2021. This is followed by a mixed ZEC price action in 2022, and ZEC ends 2023 according to the price prediction then even at only 79 dollars. Maximum price in 2024 for ZEC is LongForecast.com according to them, only 66 dollars, and in exactly four years ZEC is quoted at only 48 dollars.
  • WalletInvestor.com predicts an increase at ZEC to $ 189.39 within the next 12 months. The ZEC 5-year forecast sees Zcash (ZEC)then already at 529 dollars.
  • Also DigitalCoinPrice.com predicts a continuous increase in ZEC: by the end of 2021, ZEC will rise to $ 187, by the end of 2022 it will be $ 228, and by the end of 2023, ZCash will break through $ 300 with $ 332. According to the forecast, Zcash will eventually rise to $ 559 by the end of 2028.
  • Gov. Capital’s ZEC forecast is bearish: within the next 12 months, the algorithm at ZEC predicts a decline to $ 27.65.

Buy ZEC on eToro now

Last updated on June 29, 2021

Top Brokers for buying and trading cryptocurrencies

  • Buy Real Bitcoin or Bitcoin CFDs
  • Wallet and Exchange in one
  • 14 + Cryptos
  • EU regulated
  • Over 40 cryptos on offer
  • Fees rather in the midfield

Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.