“ZCash is one of the most important project in cryptocurrency space”, concludes Digital Asset Research
Digital Asset Research(DAR), an independent cryptocurrency research firm based out of New York, has taken out a report yesterday, stating Zcash [ZEC] has one of the most secure blockchain currently, and one of the most important projects in the cryptocurrency space.
DAR’s report argues that ZCash’s use of encryption makes the network more secure then Monero, which has suffered to past attacks. To add proof to their claim DAR compared the inner workings of Monero with ZCash.
Monero uses a transaction mixing algorithm called as RingCT, which combines multiple transactions into one group of transactions. This causes individual transactions to be hidden. RingCT is based on a Bitcoin privacy transaction protocol called as CoinJoin, which was proposed by Greg Maxwell.
According to the report,
“The fundamental problem of coin mixing methods is that transaction data is not being hidden through encryption. Instead, both CoinJoin and RingCT are systems of disassociation. In such systems, all information is publicly visible, but transaction-specific data, such as the amount sent, is disassociated from user-specific information, such as the addresses associated with the balance. If the heuristic used to disassociate these data points is broken, as it was the case with the majority of Monero transactions prior to Feb 2017, the privacy of the entire system is also broken.”
ZCash, on the other hand, relies on encryption rather than coin mixing. ZCash uses a variant of the public encryption algorithm, zero-knowledge proofs, called zk-SNARK. zk-SNARK is more secure than disassociation algorithms used by other privacy coins, as it encrypts sender information, receiver information and the amount.
DAR also points out the ZCash’s advantage of giving the user to choose the privacy feature rather than it being enforced on every transaction. This feature allows the government to be more open to ZCash than Monero and other privacy coins, which are banned in certain countries such as Japan and the US.
More the number of exchanges a token is listed on, higher the value potential of the token.
Currently, Monero is 3 times bigger than ZCash in terms of market cap. Both Monero & ZCash are trading at similar amounts. Monero is at $112.26 while ZCash $113.70.
ZCash has also been praised by Vitalik Buterin himself, calling ZCash as a cool project.
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