Buy ZCash (ZEC) in Pakistan
What is Zcash?
Zcash (ZEC) is the world's first open-source confidential cryptocurrency based on the blockchain, as well as the payment system of the same name.
Developed by Zerocoin Electric Coin Company in 2016. The coin of the same name with the unofficial trade symbol ZEC is used as a means of payment. The Zcash platform provides complete confidentiality of the coin exchange procedure within the network or transparency at the choice of the parties. In this case, transactions are recorded in the general block chain, but the sender, recipient and the transfer amount are unknown to the rest of the network participants.
Unlike other pseudonymous digital assets, Zcash uses zero knowledge proof-based cryptographic techniques. This allows you to verify the mathematical reliability of the translation, but does not provide a single information about the second participant in the exchange. In addition, the cryptocurrency uses special transaction block headers, the zk-SNARK protocol, notes, JoinSplit descriptions, etc.
A team of scientists from well-known world universities worked on the creation of Zcash, such as: MIT, Tel Aviv University, Technion, University of California Berkeley and others. The inner structure of the coin is thought out to the smallest detail and mathematically substantiated. The protocol for the technical implementation of Zcash can be called a real scientific work, which is a breakthrough. At the same time, Zcash borrowed many of the successful developments of Bitcoin, Zerocoin and other digital assets.
The minimum transferred denomination of the cryptocurrency is 10−8 ZEC from the ZEC and is called "noshi".
The privacy of the Zcash network has been appreciated by many eminent investors, developers and cryptographers. WikiLeaks has donated to the ZEC to preserve security, and cybersecurity expert Edward Snowden has called cryptocurrency the most successful replacement for BTC. Due to its privacy, Zcash is often used in black markets on the Internet - in a 2017 circulation, Europol even expressed concerns about the popularity of cryptocurrency.
ZEC is also often referred to as the new digital gold.
Steve Waterhouse, Roger Ver, London Trust media and other investors note the investment attractiveness of the project. Starting at $ 40-50, at the peak of popularity in January 2018, the cost of the cryptocurrency reached $ 600-700 per coin.
How does Zcash work?
The ZeroCash protocol and the non-interactive zk-SNARK arguments are just the tip of the iceberg for Zcash. To represent the work of cryptocurrency, it is necessary to delve into the basics of the mechanism of functioning of digital cash - the blockchain.
Blockchain is a decentralized distributed database. It is presented as a continuous sequence of blocks, or chains. Blocks are small information units up to 2 MB, in which transactions are recorded. In turn, a transaction is a ZEC exchange procedure between users, which can be expressed in the form of data.
Continuity is based on the fact that each block in the chain has a link to the previous block, and that one points to its parent block, and so on, ad infinitum. At the same time, such links also have transactions inside the block, which are also lined up in a short chain and refer to the highest authority - the block header. Thus, it is impossible to forge a block or transaction without affecting the entire block chain. This protects the Zcash system from intruders and fraudsters.
If a block cannot be forged, then you can try to pretend to be the one who creates this block - a miner. But here, too, the cryptocurrency system provides for protection - a decentralized proof-of-work, performed by miners.
Miners are independent network users with sufficient computing power. They confirm the authenticity of the transaction: the real belonging of ZEC to the previous owner, record the fact of transfer of a certain amount to the new owner in the block.
There are many miners, and they check the validity of the block independently of each other. Thus, in order to legally forge a block, it would be necessary to have the computing power of 51% of all Zcash miners - today this is an indicator of 5-7 power plants. This theoretical network hack is called a 51% attack.
The first cryptocurrency Bitcoin, which was initially positioned as a confidential payment system, has a similar structure. In fact, theoretically, the sender and recipient of BTC in the system can be tracked - their addresses, transaction number and amount are published openly in the general network, but personal data are not indicated. This property of the Bitcoin network is called pseudonymity. Zcash was created to provide users with complete privacy. In essence, Zcash is what real, confidential Bitcoin was supposed to look like.
To ensure the privacy of transactions, the Zcash protocol uses zero knowledge proof. This is a cryptographic method that allows one of the parties to a ZEC transaction to verify the validity of that transaction without having any information about the other party. The tricky part is proving that one party has a private key without revealing any information about that party.
For a protocol to function, it must have three criteria:
- Completeness - the proof must be carried out regardless of the specified accuracy;
- Correctness - if the statement is incorrect, then no one can convince the verifier of the validity of the statement;
- Zero knowledge - if the statement is true, then no one will be able to learn anything, except for the fact of reliability.
In a mathematical sense, the operation of the protocol does not seek to prove a statement, but to minimize the likelihood of mistaking an incorrect statement as true. In the course of the protocol operation, the approval is accredited.
It consists of three phases:
- A sends proof to B;
- B asks question to A;
- A answers question B by proving the validity of the evidence.
In other words, A must choose some element that will become his secret, or private key. Based on this key, A computes and publishes the public key. The private key defines a set of questions that A can answer correctly. Then A again chooses a random element, derives a proof from it according to a certain algorithm and sends it to B. After that, B randomly chooses one from a set of questions and asks it to A. He sends an answer to B, on the basis of which he can determine whether A really has the required private key (secret). Accreditation can be repeated many times until the chance of guessing the answer by chance is minimized.
Thus, users of the Zcash network with the help of miners confirm the authenticity of the transaction and send each other ZEC, while not disclosing information about each other. Such proofs weigh no more than 300 bytes, so they are computed in milliseconds. However, zk-SNARKs requires a large blockchain database (about 1.5 GB), so the operation can take up to 1-2 minutes to complete.
Traditional money is issued by central banks. There are no central banks in the world of cryptocurrencies. The only way to get crypto is mining, which is based on solving mathematical problems by computers.
Does Zcash mining exist?
The main blockchain continuation algorithm in the Zcash network is Proof-of-Work (proof of work done). This means that to create a new element in the blockchain, you need to spend some computing power. This process is called mining.
Mining (from the English extraction of minerals) is the process of processing a transaction for which the system pays a reward. The first miner to complete the computation of transactions and create a block will receive a reward of 12.5 ZEC. The more power a miner uses, the more likely it is to receive a reward. Therefore, over time, users began to create mining farms - a computer consisting of several CPUs or GPUs and special software.
With the advent of ASICs, the situation in Zcash mining has changed. ASICs are specifically designed for mining Bitcoin-based cryptocurrencies. These are powerful processors that cannot be compared to conventional CPUs or video cards. With the growing popularity of ASIC mining, it became more and more difficult to mine coins alone. Therefore, users began to unite into mining pools - communities where the capacity of a thousand mining farms was implemented as one miner account. As a result, the likelihood of receiving a reward increased, and earnings were distributed among the pool members, depending on their contribution to the process.
When mining, it is important to take your pool selection seriously. Evaluate server locations, commission (1% standard, less is better), minimum payout and login conditions.
Among the best are:
- Flypool - a confidential pool with instant payments and a hash rate of 60 mH / s;
- 2Miners - 1.5% collection for solo mining, as well as a fair system of payments depending on the network capacity;
- Kratos.biz - a mining pool specializing in ZEC and having one of the lowest commissions of 0.9%;
- Poolin.com - the most powerful ZEC pool, takes a commission of 1.5% of the reward amount, but finds blocks more often.
Zcash uses the Equihash mining algorithm. The development team is confident that in the long term, the algorithm will be able to avoid the excessive influence of ASIC miners. The payback of mining coins is 14-13 months - not the worst indicator for a cryptocurrency from the TOP-25.
How to buy ZCash in Pakistan?
You can buy ZCash in several ways.
These are platforms where you can buy ZEC and sell it. Usually exchanges provide a wallet where you can store your coins. After installing a local wallet, you can transfer coins from the exchange to it and store there, if you do not plan to trade further.
Popular crypto exchanges:
It is a quick and easy purchase with no trading option. You can buy coins with fiat money or any other cryptocurrency. To make an exchange operation, select the currency you give and receive, enter the wallet address. If a wallet is provided on exchanges, then in order to purchase from exchangers, you need to install a local wallet or use online services to store coins.
The most popular crypto wallets are:
1. Iq Wallet;
3. Trezor wallet.
You can also invest in Zcash without buying through CFDs.
How to Invest in Zcash in Pakistan?
CFD is a contract for price difference. While conventional investments involve the purchase of a physical or digital product, CFDs speculate solely on the direction in which the price of the selected asset will move. This means that you are not actually buying or selling anything; instead, you are making an educated guess about the future price of the derivative.
This way, you can make the same amount of money if the price falls.
The first step in trading cryptocurrency CFDs is to open a trading account with a reputable broker. You do not need a separate digital currency wallet, you can use your regular trading account to invest.
Registration on the platform
So you've chosen an online trading platform. Go to the registration section. Here you need to fill out the registration form.
Enter the required information - usually your name, email address, and password. For safety reasons, come up with a complex combination.
Wait until you receive a notification and click on the link to confirm your registration.
If you've never traded cryptocurrency before, the best option is to practice on a demo account. In most cases, trading terminals offer this option free of charge. Trading on a demo account is carried out with virtual money, so there is no risk.
All exchange prices on a demo account exactly correspond to real ones.
It is very easy to make a real money deposit on the platform. Money is credited instantly. Each platform sets its own minimum deposit threshold. This is usually a few dollars. You can use bank cards, bank transfers, or e-wallets.
Try it and you will succeed!