However, crypto enthusiasts anticipate that the halving will help reduce this rate as the mining rewards reduce. A tweet by economist Alex Kruger criticized the coin and termed its supply as ‘disproportionate.’ Zcash has an annualized inflation rate of 28%, which is the highest amongst all cryptocurrencies.Ĭompared to Bitcoin, whose current inflation rate is 1.4%, Zcash’s supply is inflated by about 28% each year. The current mining reward of 6.25 ZEC will be reduced by 50% to 3.125 ZEC. Zcash’s first halving event is expected to take place at a block of 1,046,400, where the mining rewards will be cut by 2. Zcash halving and reduction in the inflation rate As each user in the shielded pool becomes linked to the transparent pool, the overall anonymity of the ZEC ecosystem reduces as the anonymity set shrinks drastically. ‘Even though cryptographically Zcash is very well-founded, the users behave in a way that does not take full advantage of the shielded pool, making them traceable. That said, a recent report revealed that Zcash users fail to utilize privacy features on the platform, making almost 98% of the transactions traceable. However, zk-SNARKS consumes a lot of memory, but the blockchain’s Sapling network upgrade helped counter this challenge and allowed for scaling. The use of zk-SNARKS technology by Zcash blockchain allows users to transact without revealing their identity.įor anonymity, nodes on the blockchain won’t need to share their hash rate with all the nodes in the network. Similar to Bitcoin, Zcash’s supply is capped to 21 million, and the coin is available on various exchanges. However, there’s the Zcash Foundation, whose main roles include education and consumer protection. The Electric Coin Company is responsible for developing the coin’s science and protocol. Ranked 26th on Coinmarketcap, the proof-of-work protocol uses a ‘zero-knowledge’ cryptography system to execute transactions. Zcash (ZEC) is a privacy-oriented cryptocurrency that was forked from Bitcoin and launched in 2016. What do you need to know about this event? Can an investor profit from it? How will it affect the Zcash blockchain and ecosystem? Let’s explore these aspects and different scenarios that may arise after the halving. Halving is a hot topic for any cryptocurrency, and Zcash isn’t an exception. Hopefully, the halving will help counter the coin’s high inflation rate to meet the demand effectively. The highlight of the upcoming Zcash halving is the expiry of the Founder’s Reward, whose structure hasn’t sat well with the coin’s community. For Zcash (ZEC), the event is scheduled to occur every four years, making the upcoming one the first for the privacy-oriented coin. Many cryptocurrencies experience this historic event that usually affects a coin’s supply and, in extension, its price. Following the successful third halving of Bitcoin in May 2020, another major cryptocurrency, Zcash, is set to undergo the same process sometime in November.
0 Comments
Leave a Reply. |