With Launch of Zcash Approaching, Mining Companies Get Prepared
Cloud mining companies get prepared to mine the privacy-focused cryptocurrency Zcash starting October 28.
Prepared in partnership with Genesis Mining.
The October 28 launch of Zcash has increased the community interest in the privacy-focused cryptocurrency. As Bitcoin Core prepares its own privacy feature Mimblewimble, Zcash hopes to become the first cryptocurrency that is “all about privacy.”
Founded by cryptography expert Zooko Wilcox and advised by prominent figures including Vitalik Buterin, Zcash is a cryptocurrency based on an innovative cryptography called zkSNARKs.
Initially, the concept of Zcash was introduced by Wilcox to provide a sense of anonymity between senders, receivers, and the value of transactions. Moreso, the transparency of public Blockchains allows anyone to trace transactions, the Zcash development team felt the need to provide the community with a private Blockchain architecture.
zkSNARKs, which stands for zero knowledge succinct non-interactive argument of knowledge, is the basis of Zcash that enables the processing of valid transactions with complete anonymity. The integration of zkSNARKs means that every aspect of the transaction and the network is made private, including the sender’s address, receiver’s address, transaction amount, and any other sensitive financial information.
Fair method of distribution
Initial Coin Offerings, also known as ICOs, have received heavy criticisms ever since Ethereum’s ICO, as there is no actual method in verifying the potential market value of the cryptocurrency.
For instance, if Zcash offered $10 per coin in its ICO and the real market value turns out to be $1, investors and users would be prone and vulnerable to substantial losses in funds.
Thus, Zcash believes the most fair and transparent method of kickstarting the network is allowing users to mine for themselves, using proper equipment.
Many cloud mining companies like Genesis Mining are allowing users to set up the necessary equipment and prepare to mine Zcash on October 28.
An increasing number of investors and users are particularly excited about the launch as investors of Zcash are eligible in receiving 20% block reward share over the next 4 years.