When and why the cryptocurrency Zcash was created?
Cryptocurrency Zcash was founded in early 2016 and is based on the Zerocash protocol, created for anonymous transactions. Like many other cryptocurrencies, it is based on a blockchain. At the request of the sender, transaction data can be public or private. The Zerocash protocol was originally created as an add-on to the Bitcoin protocol and adopted many features of cryptocurrency Bitcoin. As with Bitcoin, only 21 million Zcash can exist. The Proof of work modification of the Equihash algorithm is used. Since Equihash has high RAM requirements, it is not very suitable for mining on ASIC and is perfect for mining on powerful GPUs. The more public crypto nodes cryptocurrency Zcash is mining, the more decentralized the network becomes.
How did the creators of Zcash ensure the anonymity of transactions?
To ensure the anonymity of transactions, Zcash uses a zero-knowledge proof algorithm. The authenticity of the transaction is checked without disclosing the data about the recipient and the sender. Just like Bitcoin, cryptocurrency Zcash relies on public crypto nodes. Like in Bitcoin, the transaction is transferred from one public node to another public node, which is called a process of distribution over the network. However, unlike Bitcoin, full free Zcash nodes do not have to store all blockchain. A full free Zcash node is enough to store and update a small block of the network state. Block size is smaller than Bitcoin and block formation is faster. A new block appears in the network about every 2.5 minutes. Just like Bitcoin, Zcash cuts the reward for a block in half every four years.
What are the technical features of Zcash?
Users have wallets for Linux, Windows, and OS X as well as mobile applications to store Zcash. The addresses of Zcash wallets can be both open and closed. Transactions to the Zcash address that start with t (from the word transparent) are visible to all members. Transactions between public crypto nodes Zcash, which must be hidden, are forwarded between addresses that begin with Z. There are also hardware wallets to store Zcash.
What are the updates of Zcash?
Zcash has regular software updates for the ZEC node and wallets. The update of Heartwood allowed miners to receive compensation directly to hidden addresses. With the update, the Flyclient public node can check a transaction using the minimum amount of information contained in the header. This way, the Flyclient update speeds up transactions between ZEC nodes. With the ZIP protocol update, it is easier to communicate between the ZEC node of Zcash blocker and the public node of another cryptocurrency such as Ethereum. ZIP protocol update also improves protection of light public node Zcash.
How to run Zcash via Tor?
The highest degree of user anonymity is ensured by the collaboration between Zcash and the Tor protocol. Running Zcash through the Tor protocol will make all outgoing connections anonymous. All you need to do is download and run the Tor Browser. It will start a SOCKS proxy which is easy to connect the zcashd client to the public node in a hidden way. It is possible to make the public node zcashd available from the Tor network, in this case, the free nodes will get a .onion address. If Tor is running, you can connect to your free nodes Zcash implicitly by running the zcashd client from the command line with additional parameters. The Zcash developers and the Tor developers are working together on a Walking Onions extension to scale the Tor network.