Anonymous cryptocurrency

Anonymous cryptocurrency

The article is about:

  • Control and monitoring of the movement of capital
  • Anonymity bitcoin
  • What is Zerocash?
  • About Zerocash in general terms
  • Mining processes Zerocash

Anonymous cryptocurrency appeared because the authorities of the most countries of the world have made enormous efforts to establish control and monitoring of the movement of capital, not only of their citizens but also of non-residents. At the same time, they actively impose the opinion that if the information about money is money, then only criminals who are engaged in money laundering or sponsor terrorism do it. In a number of countries, the use of cash, precious metals, offshores and digital currencies, which make monitoring difficult, immediately attracts the interest of special services.
However, many people still understand that the silence in the matter of finance is necessary for terms of caution since a normal person will not write and tell everyone about their incomes and banking operations. This issue is becoming more relevant in corrupt countries, as financial data can reach criminals, and here anonymous cryptocurrencies can become the lifebuoys that many have sought.

Anonymity bitcoin

At the moment, there is a very limited and complicated use of the list of legitimate means for saving the secrecy of finance. The creation in 2009 of the first digital currency has returned people the belief that they will be able to receive completely anonymous and uncontrolled cash. After all, the concept of this digital currency was laid new, innovative technical solutions.
Of course, bitcoin is now better than an account in a financial institution in terms of independence: the digital currency can neither block nor be confiscated, which is a very important advantage of cryptocurrency. However, the anonymity of bitcoin is now much worse than bank accounts, since all transactions with bitcoin are always written in the database – a block that is publicly available, that is, they can be analyzed and tracked using the public software.
When making a payment, its amount, balance and all user transactions appear in the public access. And until the correspondence between the purse and the concrete person is established, this information will be abstract. However, right after the interaction with the outside world occurs, you can easily trace all the transactions of a particular person because the transaction chain is permanently recorded and becomes available.
If you need to hide your transactions, you can use certain “mixers”, when using them there are certain risks because you have to pass your crypt to third parties or institutions.
It is worth noting that now bitcoin is not a leader either in terms of ensuring anonymity or in the speed with which payments are made. In addition, it does not differ from the others in the dynamics of improvements.
The digital currency Zerocash (Zcash), which has the abbreviation ZEC, is a relatively new cryptocurrency and will soon “celebrate” the first year from its inception.

What is Zerocash?

The moment of appearance of Zcash is considered the end of October last year, without looking at the fact that the idea arose much earlier. The creation of Zcash was worked, in addition to the main founder, by specialists in the field of cryptography, scientific personnel of some university establishments in Israel and the United States.
Anonymity for currencies is a relative concept. Developers and supporters of the Bitcoin system have repeatedly stated that their offspring is highly confidential. But, as shown by practical actions, Bitcoin to the concept of “anonymity” is irresistibly far away.
Transfers of bitcoins are not accompanied by an indication of specific names of payers and recipients, as well as their home. But, having the address of the payer and the recipient, you can find out a lot of information about the way of movement of coins and their number.
Such information from the blockbuster can be obtained for everyone by typing a request at the command line of the browser with the following requisites and a specific address (taken from the TOP 100 of the richest bitcoin. Today, there are a lot of programs that are able to compute all the related information on the transaction. So, the birth of absolutely anonymous cryptocurrency has acted as an objective need of the entire Internet community.

About Zcash in general terms

This completely anonymous currency was Zcash. Capitalization of the cryptocurrency for today reaches $ 449,995,102 with the extracted quantity of coins 1,552,468 ZEC.
The basis of the existence of ZEC is the basic principles of the Bitcoin network. The cryptographic system Zcash is realized by the formation of transaction blocks written in the block as a chain.

The basis of Zerocash’s functioning today is the specific nuances that make it special. These include:

  • To the emergence of Zerocash has a very respectable developer relationship – the company Zerocoin Electric Coin Company;
  • The largest investment companies supported the currency even before the start;
  • The developed mathematical algorithm of the Zerocash system functioning is worthy of awarding the Nobel Prize (but, alas, mathematicians do not give it);
  • The presence of the Zcash protocol “zero-knowledge proof” (“evidence at zero disclosure”) makes it the first cryptocurrency that provides complete anonymity.
  • The essence of this protocol is the fact that when you commit a transaction, there is no data about it.

The appearance of the most anonymous currency – a significant leap forward on the way to progressing cryptocurrency in general. As for the perception of it by the general public, the question is quite interesting. Individual residents begin to wonder whether an anonymous currency is profitable, based on the approaches of financial and fiscal authorities of states, whose purpose is to maximally curb the rights of Internet users. Authorities perceive Zcash without much enthusiasm, more often putting questions on its prohibition.
Initially, the idea of creating an anonymous protocol was that they could be used as a separate payment system and cover up bitcoin-transactions. The developers proposed the idea of transferring bitcoin into a zerocoin, carrying out a transfer of funds, presupposing a reverse conversion. Thus there was a “wiping” of the chain of transfers in Bitcoin’s blockade. Based on the Zerocoin protocol, the Zcash coin itself appeared.
The young coin quickly began to gain weight and for today, on September 30, 2017, it is estimated to be almost at the level with Ether and DASH

Mining processes Zerocash

The production of Zcash was launched on October 28 last year, after a presentation. The launch of mining led to the coin attention from Genesis Mining, which offered the cooperation and development of the Zcash-miner.

Mining ZeroCash has a number of features:

  • The protocol of evidence of the work of Equihash is launched;
  • The production limit of the cryptocoin will be 21 million, as in bitcoin;
  • Ten percent of coined coins go to the purse of those who developed and improved the project “Award for Founders”.

Transactions Zcash does not leave traces in the transaction chain about which purse the money was written off, what purse they are credited to and what the transfer amount is. Only the fact that the transaction is committed is visible. In the blockroom information is hidden about the parties to the transaction, if they so wish (the parties can reveal information about themselves). This is a really unique feature of Zcash.
In order for the miners to support the chain of transactions in such conditions, a zero-disclosure protocol is used. It allows users to confirm the existence of their coins without giving out information about where the coins came from and where they will be transferred. For the transfer of information in the protocol, structures called zk-SNARK are used.
Some experts believe that mathematically guaranteed anonymity is the main advantage of Zcash over all other crypto-currencies. There is an opinion that in the present conditions of attempts of strict state control over citizens in different countries, it is precisely such a currency that will be in demand by society.
To use anonymous cryptocurrency is a successful and excellent idea. It can be concluded that if a user cares about the anonymity of his personal life, then he will have to ensure the anonymity of his financial operations.