What is ZenCash?

If you were to trace ZenCash back to it’s roots, you would find Bitcoin – the most dominant of all cryptocurrencies. ZenCash has a strong focus on privacy – introducing a number of improvements on the the predecessors that came before it (ZCash, ZClassic and ultimately Bitcoin). ZenCash focuses on security and anonymity, with functionality for not only private transactions, but equally secure messaging and secure publishing.

It stated recently that it believes itself to be ‘the most secure messaging platform in the world’ using zk-SNARK shielded transactions and encrypted memos. Of course private messaging is just one of the core functionalities of ZenCash.

There were two compelling reasons for me to like ZenCash

Firstly, ZENCASH can be mined – mining is a term for providing compute power to solve complex mathematical equations with a view to earning cryptocurrency as a reward. ZENCASH in this respect offers a Proof of Work reward using the Equihash algorithm. ZENCASH is ASIC resistant and can be mined using consumer GPUs such as NVIDIA’s GTX 1070 and AMD’s RX480.

ASIC miners are specialised devices programmed to serve a specific purpose – the problem with ASIC based mining, is that generally these units are pricey, extremely powerful, and found in ‘mining farms’ – this is not within the spirit of true decentralisation, and, with BTC for example, this means that hashpower is actually controlled and manipulated by those mining your coin – miners get a huge say in the governance of Bitcoin because of this.

The second reason I like ZenCash so much is Secure Nodes – these are servers that provide infrastructure to the blockchain – they hold a copy of the entire blockchain, they process transactions and they provide consensus to ensure that a transaction can be fully validated.

Masternodes exist across a number of coins, they provide a residual income for investors, in return for processing transactions on their network and making available the necessary funds to validate your entitlement to provide a node to the network, so can be an attractive means for an investor to generate passive income. Zen’s Secure Nodes introduce encryption on node to node communications.

Masternodes are traditionally out-of-reach to the ordinary investor, DASH for example, requires you to stake 1000 DASH, which has a value today of £430,000. At the time I first invested in Zen, the 42 ZEN requirement for hosting a secure node, would require an investment of around £790 today.

Having a large number of Secure Nodes in operation is crucial to the long term success of the project, as it’s the only way to ensure that the true decentralised nature of cryptocurrency is enforced – it provides global resilience, and supports personal privacy.

ZenCash is another project on my radar that I’m sure you’ll be hearing more about from me!

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