Before posting this I need to say that I'm active ZenCash user and supporter)
But I would be happy to hear your thoughts either here on Steemit, or on Medium from where this article was taken or on Blockchain Forums in relevant thread.
ZenCash and Zcash are relatively new coins formed as a result of trying to solve existing privacy issues surrounding crypto currencies in general. As a standard protocol with crypto currencies, coins are mixed to cover the tracks of the sender and receiver. This has however not been tamper-proof enough as the ever increasing software technology is able to decipher the patterns and connections involved and thus crack the code exposing all information related to the sender and receiver.
It is upon this background that Zcash and ZenCash were developed. They are based upon an algorithm using zero knowledge proofs also known as zk-SNARKS. These coins do not divulge any information regarding the addresses of the sender, receiver or even the amount transacted. They provide real privacy.
Features of Zcash (ZEC)
- This was the first coin developed using zero knowledge proofs (zk-SNARKS).
- It has two major groupings which are the Founders (developers) and the Miners. The Founders receive a Founders Reward of 20% for the first four years after which the amount drops down to 10%. The Miners receive the balance of 80%, and then 90% respectively
- Zcash has normal nodes which does not place stringent measures on communication. This means that it is not mandatory to have messaging encrypted at all times.
Whether encrypted or otherwise, the messaging feature is reasonably secure allowing a maximum messaging length of 512 bytes.
To find out more about how Zcash works and how to buy it, visit https://www.abitgreedy.com/zcash/
Features of ZenCash (ZEN)
ZenCash is a derivative of the Zclassic cryptocurrency (Zclassic is a fork of Zcash).
- This is an improvement of Zcash by making some modifications to the zk-SNARKS system.
- It provides a different funding model.
- Their Secure Nodes have TLS encryption built in
- As of right now, the block rewards are shared amongst three different groups namely:
- Miners — 88%
- Treasury (ops and dev) — 8.5%
- Secure Node Operators — 3.5%
- Just last week ZenCash announced the new tier of nodes — Super Nodes — that will be more powerful than Secure Nodes and have a much higher stake requirement (500 Zen vs 42). The new funding structure will look like this:
- Miners — 70%
- Treasury (ops and dev) 10%
- Secure Node Operators — 10%
- Super Node Operators — 10%
- ZenCash offer an improved node security. This means that very stringent measures have been placed in regards to communication with obligatory setup requirements. This way encrypting a message is not optional but mandatory at all times.
- The messaging capability of ZenCash goes up to 1024 bytes long.
- Currently, Zen is working on a number of other products (i.e. ZenGrid, ZenPub). More information on that can be found on ZenCash.com.
Similarities between Zcash and ZenCash
- Both Zcash and ZenCash use the zk-SNARKS system which is the zero knowledge proof.
- Both have very committed and competent developers.
- Team members are technocrats with a wide range of state-of-the-art technical skills who keep improving the system and enhance its tamper-free reputation.
- Both were developed to counter the ‘war of privacy’ by re-inventing and improving on mixing which is the wheel that bitcoin operates on contributing to frequent challenges.
- Both provide anonymity of both the sender and receiver and all the details it entails.
Zcash Mining
Before getting started to mining Zcash, one first requires to have a Zcash wallet. The process of acquiring one is as simple as downloading the Zcash Client where installation instructions are given.
Secondly, identify a mining pool with which to direct your mining power to. There are multiple pools available including the following:-
- Nicehash Miner
- MinerGate
- Zcash4U
- Guru
- 2Miners
This does not, however, mean that one cannot undertake mining solely though it is advisable to join a pool for increased speeds and efficiency. Mining capacity is estimated at 2.5 minutes per block and the total supply of coins is set at 21 million, just like bitcoins.
Finally, you need to download the latest version of the Miner you have selected.
There is a second way of earning Zcash without actually having to mine. This comes in form of a faucet. This faucet method works more or less like the ordinary faucet which helps to control and direct liquids. In this case, you place adverts on your website or your faucet mobile App and you are rewarded according to the number of visitors who check in to your site. Besides getting paid for the traffic flow, referral bonuses are also earned where you get a certain amount by introducing a new user. This has proved very beneficial with aggressive users earning over $10,000. Some of the Zcash faucets include:
- ZcashfaucetNet
- Zecfaucet
- Zcashparty
- ZcashBucks
Having gone through the Zcash mining/earning process, let us now delve into ZenCash mining.
ZenCash mining
We already learned that ZenCash is an improvement on Zcash in matters related to concealing the privacy of the sender and receiver. This has been achieved by adding onto the zk-SNARKS system very strict messaging setups that are mandatory and ensures that all messages to and from the user are encrypted.
- The pre-requisites for mining ZenCash are similar to those for Zcash — you will need a wallet and mining pool on which to operate. Once these are in place, open the ZenCash link and navigate to the ‘connect’ page. On this page is a list of various mining programs is provided and you can select one that suits your computer power namely, a CPU or GPU. The list provided here is not exhaustive and more options can be found on Github.
- Download EWBF miner from the official EWBF website if you are using Nvidia cards. Here you will be required to input your Rig Name which is simply your Zen wallet address and which helps you to identify your pool workers. You will be required to input your password and save the file.
- Run the ‘Start.bat’ file and you are well on your way to mining!
In case you need to verify that you are actually mining, all you are required to do is to enter your Zen address into the zenmine.pro homepage and you will get all the statistic updates either instantly or after waiting for a few minutes.
Conclusion
Both Zcash and ZenCash are getting more popular by the day. Users have varied opinions of both coins with some holding the view that Zcash is getting bigger and better and has been present in the market longer making it the better option. Others hold the opinion that ZenCash is more accessible and has better future prospects in terms of price appreciation, at least for the next few years. Whatever your investment option, it is important to invest in either one or both coins and watch and wait as the scene unfolds.