Criminal underworld transactions thrive on illegal purchases and given this crucial fact and illegal nature, privacy is of the highest priority as no one wants to risk jail term because of financial crime.
Since its launch in 2009, Bitcoin has been the underworld’s favorite avenue for transactions, therefore, you may be wondering why it is being rapidly dropped it for a once little known one year old Zcash. A techno savvy person will automatically guess that it all has to do with privacy. Zcash simply overtook bitcoin in being a more decentralized, open-source cryptocurrency thus upgrading the level of privacy hence more anonymity making it possible to be virtually untraceable.
Even though the two share obvious structural similarities, Zcash is known to utilize highly advanced and updated cryptographic techniques hence offering optional and well improved privacy coupled with transparency and on top of that it has its own unique blockchain. Bitcoin does not have its own unique blockchain therefore even though it may be difficult to know those who are involved in the transactions, it is still possible with the right resources and funds. Simply put it is virtually impossible to trace back the source of funds transacted in Zcash.
Also, the payments with both Bitcoin and Zcash may be published on a public blockchain, but with Zcash information pertaining to the sender, the recipient, as well as the amount of a transaction continues to be private making it ideal for criminal underworld transactions. It employs the use of highly advanced cryptographic techniques known as zero-knowledge proofs, hence guaranteeing that transactions are valid without having to reveal additional information pertaining the involved. On the other hand, even though Bitcoins is sometime used for making illegal purchases, its fall out with the criminal underworld comes as a result of its transactions being able to be seen and therefore tracked by anyone.
So as an investor you may ask yourself what exactly gives Zcash its value over oldtime Bitcoin? The answer lies in the ability to maintain secure or in other words water tight ledger of balances. It is because of this crucial aspect thanks to their novel cryptographic method that with Zcash ledger of balances, it is impossible to identify the parties and/or amounts involved in the transaction. With Bitcoin it is possible to mark out the spend-authority and the value being transacted which eventually can be used to gives leads to the involved parties.
With Bitcoin, the spend-authority and transaction values is publicly demonstrated whereas with Zcash, there is a feature that supports both the shielding and transparency of addresses. This is whereby you can choose to transact either privately or publicly and the criminal underworld are provided with an easy option (i.e privately) where the address is shielded.
Zcash also offers fungibility which is a very important function of currency. This is when the history of a unit of cryptocurrency is unlinked making it as clean as any other unit. However, with Bitcoin units are pseudo-anonymous which implies that the knowledge of transactions can be discerned.
In simple terms, Zcash (ZEC) is the better option of the two when it comes to privacy and having selective transparency in view of transactions.