What is the difference between Zcash and Bitcoin?
The main difference between Zcash and Bitcoin is the level of privacy and anonymity that each offers.
Bitcoin is a pseudonymous cryptocurrency, meaning that while transactions are recorded on the blockchain, users’ identities are not revealed. Zcash, on the other hand, is a fully anonymous cryptocurrency. It uses zero-knowledge proofs to ensure that transactions are completely private and untraceable.
This means that users can send and receive funds without revealing their identity or the amount of money being sent. Another key difference between Zcash and Bitcoin is the way in which new coins are created. Bitcoin uses a proof-of-work system to create new coins, while Zcash uses a proof-of-stake system.
This means that instead of miners competing to solve complex mathematical problems in order to create new coins, users can simply stake their existing coins in order to receive rewards for helping secure the network. Finally, Zcash also has an optional feature called “shielded addresses” which allows users to send and receive funds without revealing any information about the transaction or sender/recipient addresses. This feature is not available on Bitcoin and provides an extra layer of privacy for those who wish to use it.
