Privacy Coin

Privacy coin are kinds of cryptocurrencies that allows for privacy(hinders public view) and anonymity in blockchain transactions which records of both sending and receiving isn't made available for the public to view.

They use a mechanism of changing wallet addresses of every user per transaction, hiding the wallet balance of the user and also mixing up multiple transactions together.

This coin has certain advantages such as it's high level of security, most users prefer them because of this reason and also it makes them feel safe and untraceable. Whereas the disadvantages in this is that, it is hard to trace hackers and take tax from users by government or trace criminals in a nation.

Most countries didn't legalize the use of private coin, due to some factors considered by the government of the nation. This has also caused the delisting of most coin from some exchanges.
Some of the few examples of private coin are Bitcoin, Monera, Zcash, Dash, Grin, Beam etc.

Let's do a quick analysis on one of the privacy coin.

FUNDAMENTAL ANALYSIS OF ZCASH.

Zcash also known as zerocash is a decentralized cryptocurrency that offers privacy to it's user with strong security. It claims to be a Bitcoin extra. Its described as Https and reffered Bitcoin as http which means it offers more than Bitcoin does.

It created a blockchain that operates with a decentralized anonymity payment scheme called DAP scheme. This DAP scheme doesn't allow for the destination, origin and amount of token be open to the public, but it provides an option to show the data of transactions for auditing purpose or regulation purpose.

The transaction on the blockchain is less than 1kb which makes it's fast in handling transaction. A time of 6ms is taken for each transaction.

Zcash which is forked from Bitcoin development started in 2013 by John Hopkins and Mathhew Green, but the development was finalized by FOR PROFIT ZCASH COMPANY which is owned by Zooko Wilcox a computer security expert. He was seconded by Cypherpunk and was officially launced and mined on October 2016.

It uses a cryptographic tool called zk-SNARKs which means zero zero-knowledge succinct non-interactive arguments. This kind of ledger stores the transaction details with a different address from the users own and still does not never it to the public. It uses the Proof of work vlickchain mechanism like Bitcoin and it is mineable. Some of the exchanges where zcash is available and can be traded on are Binance, Okex, Bkex, huobi, hitbtc etc.

Zcash uses 2 pool to perform transaction which are: the transparent pool known as the t- address whereby the details of transaction is made public but the details made public are limited and the other pool is the use of the zk-SNARKs that doesn't reveal transactions to the public, it is reffered to as z-address.

Zcash has an all time high of $5,941.80 on the 29th of October 2016 which was as a result of its high demand which made it hit $5000 in a week, it has an all time low of $18.94 on the 13th of March 2020. It is ranked #54 on the world coin rank and has a dominance of 0.1%.

it uses Bitcoin codebase so it has same maximum supply as Bitcoin of 21 million, with a circulating supply and total supply of 11, 890,106.
Its current price as at today is at $156.14 dollars with a trading volume of $551,007,872.40. it's market capacity is $1,856,516,713.33.
Wallets that is compatible for zcash

There are various categories of wallet where zcash can be stored.

The first are mobile wallets that support shielded address, this wallets doesn't show data like the sender, receiver and amount sent.

Examples of this wallets are zecwallet lite nighthawk wallet, unstoppable etc.
The second one is the wallet that allows for the transaction of zcash to be open to all. It operates the second mechanism. These wallets are Trustwallet, Atomic wallet, coinbase etc.

Lastly, these type of wallets are complicated and for the technology savvy users. They are called the full node wallet. They allow a user to be able to mine with the application and at the same time store, send and receive zcash without showing the transaction details to the public.

How to set up wallets for zcash.

To see the various wallets available for zcash, one will first go to z.cash/wallets/ on his or her browser. Then select the wallet you wish to download, after downloading you then set it up.

For this tutorial we will be using zecwallet lite. The zecwallet gives one access to have both a t-address and z-address on the same.wallet.

To setup a zecwallet lite after downloading from playstore or app store, one will then launch the application.

After the launch of the application, you will then click on create new wallet as indicated on the screenshot above. After clicking that it will bring your seed phrase which should be kept well and kept private so others can't have a chess to your wallet or steal from your wallet.

After securing the wallet seed, then click on I have saved the seed. It will then take you to the homepage. Which will show your wallet balance, where to send and where to click when to receive.

To get your wallet address you will click on the receive button, it will then show you the two types of 8wallet address available the t-address which is the transparent pool and the z-address which is the shielded pool. Like I said earlier all transactions done with the t-address will be visible to the public while all transactions with the z-address is not made public.

Setting up zcash on trust wallet.

Firstly one has to download the trust wallet application from playstore or appstore. Then one create a new account. If one has created an account, all you have to do is to activate the zcash on your wallet and then use it for sending and receiving token.

To activate the zcash follow the steps below. Launch the app, then click on where the arrow is directed at. After which you search for the coin zcash, it will bring out the result of the search.

You the activate it by clicking the toggle button, after clicking the button the coin will appear on your coin list. You have successfully activated the zcash coin.

Advantages and disadvantages of zcash.

Advantages

1. It has high security for it's user.

2. It enables one to have a transparent wallet address and a shielded wallet address.

3. It is totally anonymity

4. It processes transaction within 6ms.

5. It enables a person or a company to help hide their assets from priving eye.

6. It gives room for mining by users.

Disadvantages

1. It allows for criminals to send and receive the coin without anyway to trace them.

2. Cybercriminals can make use of it without any form of tracking.

3. The mining mechanism uses a high rate of energy.

Conclusion

In Conclusion, zcash is a Haven for those who loves privacy, be it the t-address pool or the z-address pool. The transaction of both pool isn't always useful for the public to use in tracking a user. Just as shown in the screenshot below.

The peculiarity of zcash made it possible for higher authority to monitor transactions or auditing an account if given access by the zcash admins.

It also allows for people to buy things without fear or shyness. Zcash is a fork of Bitcoin and its like a Bitcoin + because it provides more scalability and more security than Bitcoin.

Bitcoin and other coin are also reffered to as anonymous, which isn't quite true they are better reffered to as pseudonymous while zcash is a better definition of anonymity because of its high privacy Level.

@levycore