TOP 5 wallets for Zcash (ZEC) cryptocurrency

What is Zcash?

Now there are many projects on the crypto market that can provide their users with complete or partial anonymity. One of these very interesting projects is the ZCash (ZEC) cryptocurrency, which has long since taken a strong position in the market and received the trust of a large community. The main reason for the demand for this project is completely untraceable transactions, which allow you to hide all your financial transactions within this network with a 100% guarantee. But this is not the only advantage of ZCash.

Over the course of 2020, the ZEC currency was able to grow by 1400%, starting at the beginning of the year at $50 and reaching a peak of $680. Thus, ZCash can be used with

History of the creation of the ZCash project

The ZCash cryptocurrency appeared on the digital market quite recently - in 2020. However, the development of the project began much earlier - in 2014.

From the very beginning, programmers decided to take the creation of their digital asset seriously and develop a special protocol for ZCash called Zerocash . It took quite a long time to perfect it, which is why ZEC was released only two years after its creation.

We can say that the history of the creation of the ZCash cryptocurrency began even earlier - back in 2013. Then the Zerocoin Electric Coin Company, led by Zuko Wilcox, successfully completed the creation of its personal Zerocoin protocol, which allowed the exchange of bitcoins for zerocoins, and at the same time provided an improved level of information privacy. This protocol also made it possible for each crypto user to convert (split, merge, exchange back to bitcoins) zerocoins at will. Later, it was this development of the Zerocoin Electric Coin Company that became the main platform for the ZCash cryptocurrency.

In 2014, the development team was able to improve the protocol, achieving privacy efficiency. Thus, the electronic currency Zerocash appeared, which was similar to Bitcoin.

In January 2020, ZCash creator Zuko Wilcox announced the release of his new system, which was called ZCash (symbol ZEC). First of all, it was a separate monetary unit, and not another typical payment system copying Bitcoin.

October 28, 2016 can be considered the official entry of ZCash into the market. After two months of proper operation of the company, special equipment for mining ZCash was released, immediately after this the intensive promotion of this Blockchain project and its development began.

Zcash [ZEC] “Sapling” update has become even more anonymous

Privacy-focused cryptocurrency Zcash (ZEC) has implemented a monumental upgrade to the Zcash network known as “Sapling.” The announcement was made by the cryptocurrency's parent company, Cash Company (ZCC), via Twitter on Sunday evening.

Sapling protocol and what it does

The "Sapling Protocol" has been in development for months, if not years, and arrived during the network's 419,200th block. With this network upgrade, the Zcash cryptocurrency will adopt a new form of secure addresses, introducing a new privacy system for ZEC by allowing users to hide transaction and address data.

Read also: Nick Szabo: Ethereum (ETH) is becoming a “centralized cult”

The Sapling update uses zero-knowledge technology that makes private transactions much more efficient than before the update.

The ZCC blog talks about Sapling's influence:

Sapling introduces new secure addresses with significantly improved performance: reducing transaction build time by 90% and reducing memory footprint by more than 97%.

In addition to the statement above, ZCC Chief Technology Officer Nathan Wilcox recently said in an interview:

“Zcash Sapling will allow secure transfers (transactions) to take place in approximately 100 times less memory and likely six times or more faster.”

Read also: The future of Ethereum Classic

By dramatically reducing transaction size and increasing transaction efficiency, private transactions will become more accessible to ZEC users. Even cryptocurrency exchanges will be able to improve issuance and secure transactions by creating “diversified addresses.”

A step forward, but still a lot left to achieve

While the Sapling update brings many benefits and improvements to the Zcash network, there is still a lot of work to be done.

For example, ZEC is currently unable to conduct a private transaction from legacy-protected addresses to Sapling-enabled addresses. Transaction data will simply be exposed in this process, which ironically goes against the ethics of what the Zcash network stands for.

However, despite the improvements that still need to be made, Zcash is very ambitious in its project.

Read also: Bitcoin (BTC) may soon stand out amid inflation: CryptoCompare

They sum up this optimism in their blog:

In fact, it is the light that gives us direction and illuminates our sense of purpose as we continue to innovate, create, and experiment. We look forward to the future milestones outlined in our outreach program that show privacy is the path to economic freedom and opportunity.

As Sapling upgrades and continues to innovate, we can expect the ZEC cryptocurrency to increase in value. However, at the time of the Sapling update announcement, the ZEC price was at $123, and has since fallen 6.5% to $115 at the time of writing.

Regardless of the current price, many in the Zcash community are hopeful that the Sapling update will bring further progress, as well as an increase in the long-term value of the privacy-focused crypto asset.

Cryptocurrency ZCash. Main idea of the project

So, what is the ZCash cryptocurrency? This is the first decentralized digital coin with a unique open source Blockchain, ensuring complete anonymity of transactions.

First of all, the developers had the idea of creating an anonymous currency that solves the problem of Bitcoin, which is the ability to track the owners of certain wallets. After all, as you know, Bitcoin was not originally created as an anonymous currency.

The main feature of ZCash is that the open Blockchain system is used for transfers, but the name of the recipient/sender and the amount of transferred funds are kept secret. The developers achieved a similar principle of network operation using the cryptographic zero-knowledge proof method, which is also called “ zk-SNARK ”. It is he who allows you to confirm all transactions on the network, keeping the details of transactions closed from prying eyes.

ZCash may also be interesting for its technological feature - the presence of “XCATs”, which allows cross-platform “atomic transactions” (where transactions are executed completely or not at all) between users without using a centralized exchange.

Guide to creating a Zcash account

Many beginners do not know how to create a Zcash wallet. First of all, you need to decide on the type of storage. The simplest option is browser-based. Step-by-step instructions for registering a Zcash account in the online service:

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Go to the official website of the selected resource.
Click on the “Registration” tab.
Filling out the opened form. Due to the anonymity of Zcash, most wallets require minimal data (email and password). The client can optionally enter personal information in his personal account after registration.
Confirm your email address by clicking on the link in the letter sent to the specified email address.
The process is complete. To enter your personal account, you must log in.

For desktop programs, the procedure is identical, but additionally requires downloading and installation of the software. The complexity of installing a working client is comparable to a similar action for any computer program or game.

If you lose your password in Zcash online wallets, access is restored via email or after contacting technical support.

Development team. Plans and prospects

The development team that was initially involved in the development of the Zerocoin Electric Coin Company is almost at full strength and has continued to work on the ZCash cryptocurrency. In general, the development team consists of scientists, engineers, consultants and investors.

Founder and CEO

Zooko Wilcox. He has more than 20 years of experience working with open and decentralized systems, cryptography and various startups.

The team includes a large number of different employees: researchers, scientists, programmers, advisors, and so on. It should be noted that Vitalik Buterin appears among the project’s advisers.

The team of scientists includes:

Eli Ben-Sason.
Alessandro Chiesa
Christina Garman.
Matthew Green.
Jan Myers.
Eran Tromer.
Madars Virza.

Advisors to the Zcash ZEC project
The team actively publicizes its activities on the project. On the official website (which, by the way, has many language versions), there is a section with a blog where developers regularly publish reports on their achievements.

The site has a clear and understandable interactive road map, which outlines the main stages and plans for the future.

Prospects for the development of Zcash

Best ZEC Mining Pools in 2020

It is not profitable to mine Zcash solo, which means you need to choose a mining pool. We can advise you on the five most popular pools, which have demonstrated enviable stability over a long period of time.

#1. Poolin

Poolin.com generates the largest portion of Zcoin's mining hashrate at 34%. It was designed by the developers of the Blockin blockchain platform, which specializes in creating innovative technologies and applications. On the Poolin website you can mine 9 cryptocurrencies: Bitcoin (BTC); Bitcoin Cash (BCH); Bitcoin Cash SV (BSV); Zcash (ZEC); Litecoin (LTC); Electroneum (ETN); Decred (DCR); DASH (DASH); Monero (XMR).

Poole fees: 3%
Minimum Withdrawal: 0.01 ZEC
Payment Scheme : PPS

#2. F2Pool

F2Pool generates 19% of the Zcash (ZEC) hashrate. Founded by Chinese developers in 2013 under the name Discus Fish, the platform is one of the oldest in the world. F2pool has a network of servers located both in its home region (China and other Asian countries) and in the USA.

Experts agree that the service will continue to hold its place in the top five mining pools. The project remains attractive to users and allows you to mine all the most profitable cryptocurrencies.

Poole fees: 5%
Minimum Payout : 0.01 ZEC
Payout Scheme : PPS

#3. Antpool

Antpool is the leader among pools and occupies 20% of the market. It accounts for 13% of ZEC hashrate. AntPool, unlike other platforms, offers advanced configuration options for mining, as well as an abundance of working tools. The interface allows you to see all the relevant information about the current level of performance, speed, and even user success.

Please note: here you can choose how payments will be made. The best option is PPLNS. If you work under the PPS scheme, the system charges a commission of 5%.

#4. Slushpool

SlushPool is the world's first Bitcoin mining pool and a pioneer among cryptocurrency mining projects. The developer and manager of the project, launched in 2010, was Satoshi Labs. The company's main office is located in the Czech Republic.

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The developers have implemented their own payment method on the site. The pool operates a hybrid reward system, which consists of PPLNS and PROP:

Pay Per Last N Shares (PPLNS) – payment for the last number of shares; the reward is calculated for the number of shares sent by the miner if the block is found by the pool;
Proportional (PROP) – proportionally; the reward is calculated in proportion to the contribution of each pool participant to the mining process.

The commission is only 2%, and ZEC mining is free.

#5. Luxor Mining

Luxor is another popular Zcoin mining pool. To start receiving rewards for mining, instead of a wallet in the settings of the miner’s ASik or BAT file, you need to enter your login specified during registration.

The pool uses Pay-Per-Share (PPS). This payment method offers a fair, guaranteed income for the miner. The pool pays miners regardless of whether the pool finds a block. In the case of Luxor, miners receive payment for each share without waiting or confirmation.

Payments occur every hour after the minimum balance for payment has been accumulated. Automatic payment for Zcash is set when a balance of 0.1 Zcash is reached and is made without commission.

Finally

So, what is the best way to mine ZCash? It is not very easy to answer this question unambiguously, since each miner chooses a pool according to his needs and needs.

Benefits of the ZCash network

The advantages of this anonymous cryptocurrency include the following:

high level of network confidentiality;
the ability to create applications using this Blockchain technology using the non-disclosure proof method;
the ability of the system to operate without linking coins to the entire history of the network.

This system also has disadvantages:

six parties to the transaction can agree among themselves to preserve the public key;
the ability to create a new public key due to a possible information leak;
a lot of calculations are required to complete a network transaction.

Where to buy ZEC cryptocurrency

Now almost every major cryptocurrency exchange has added this currency to its sales list.

The most popular trading platforms where you can purchase ZEC:

Binance
EXMO (it is possible to create a fiat account and buy for dollars)
Bittrex
Poloniex
HitBTC
CEX.IO (it is possible to create fiat and buy for dollars)
Bitfinex
Huobi

The greatest demand/supply of the ZEC coin is on the LBank exchange - the daily trading volume reaches $44 million.

ZEC Storage Wallet

You can store ZEC cryptocurrency directly on the exchange where you purchased it. However, this method is not very reliable, since the private keys to your wallet do not belong to you. It is better to prefer different e-wallets.

Now there are many services that provide the ability to store ZEC online. The most common ones are:

Jaxx;
Cryptonator;
bitpie;
Coinomi;
HolyTransaction;
FreeWallet.

To use these wallets, you need to install one of the proposed options on your PC operating system and then follow the simple registration instructions. As a result, you will receive the necessary keys and addresses to transfer your cryptocurrency to your wallet.

The advantage of these wallets is speed and convenience. The downside is that there is some possibility of your account being hacked by scammers, since e-wallets require an Internet connection. To install a wallet where you will store cryptocurrency, it is best to use a separate laptop, on which at least an antivirus will be installed and network security rules will be followed.

This is very important and should not be neglected. Read how, for example, they steal cryptocurrency from Myetherwallet web wallets.

Another option to store ZCash is to use the local official wallet from the developers of this cryptocurrency, which is called “ Zcash4 ”. However, to use it you will have to download the entire ZEC Blockchain, which will take quite a lot of time and a lot of free space on your hard drive. This is the main disadvantage of a local wallet. One of the advantages is high security.

And finally, storing ZCash is supported by cold storage hardware wallets such as Ledger and Trezor. This is the most secure way to store your cryptocurrency, but you will have to pay about $100 for such a wallet.

Varieties

You can find out popular services for storing coins in the Wallets section on the official website of the project. The information is presented by the developers for informational purposes, since the portal does not have the most complete list of options. Wallets are needed to purchase coins, for mining, etc.

Main types of Zcash storage:

online wallets;
desktop;
mobile wallets;
hardware wallets.

Each type of holder is a place where the cryptocurrency is safe. Depending on the preferences of the coin holder, you should choose a specific holder. To protect your own savings as much as possible, it is recommended to create several wallets in parallel.

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Online services

To open an account, simply register on the website. No software installation is required, access is via a browser. Easy-to-use, functional and simple services make it easy to manage virtual savings. Disadvantage: weak level of security. Zcash online wallets: Guarda, BitGo, Mobi.

Web services are more suitable for storing small amounts or for regular use. For long-term storage of large savings, it is better to choose a safer method. In services, to increase the level of protection, it is recommended to set two-act authorization and transaction confirmation in the settings.

Each service sets its own digital currency rate, based on indicators from major exchanges. Some services additionally display the Bitcoin to ruble exchange rate and similar information about other virtual assets.

Desktop

Local wallets are storage facilities that involve downloading and installing software on a PC. They are more secure than browser-based versions. They can occupy a large amount of memory (up to several tens of GB). Popular examples: zec-qt-wallet, Jaxx, ZelCore.

To eliminate the risk of losing access to money due to losing the password to your personal account, it is recommended to periodically create backup copies: the identification data necessary to log into your account and make transactions is stored simultaneously in several places.

The official wallet released by the developers of the Zcash project is intended for use on a PC. You can download the software on the startup portal https://z.cash/ru/. The program is designed for the 64-bit version of Linux. For full use, at least 2 GB of RAM on the device is required, and at least 10 GB of free space should be left on the disk.

The software client is equipped with a user-friendly interface and a standard set of functions that allows you to transfer coins and other transactions.

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Hardware

Autonomous devices for cold storage of Zcash. The main advantage is a high degree of security. One of the disadvantages is the inaccessibility of money for immediate use. Additionally, you will have to buy a storage gadget (7–12 thousand rubles). Popular devices: Trezor and Ledger.

Storing Zcash in each of them is a guarantee of the safety of funds from hacks and fraudsters, which eliminates difficulties with access to money.

Mobile applications

The advantage is ease of use. Control is carried out via an application on a smartphone. In terms of functionality and security, they are comparable to web wallets. Examples: Mobi, Jaxx. Coinomi is a popular multi-currency application that allows you to simultaneously open accounts for different cryptocurrencies (more than 500 assets).

Most large companies have several wallets:

mobile;
browser-based;
desktop.

Accounts are synchronized, allowing customers to use one wallet on different devices.