Cryptocurrency adoption is constantly rising. Yet, security remains the central point for any investor. While there are public and privacy coins, more and more attention goes to the latter ones. Zcash and Monero are the leaders in the privacy blockchain space. So, you may want to learn more about these coins.
You have to understand the mechanisms standing behind each of them to be sure of security. So, once you dive into this article, you will figure out Monero vs Zcashdifference. You will also get an idea about what to invest your money in.
In general terms, privacy coins work just like any other cryptocurrency. They run on decentralized ledgers and are maintained by a network of anonymous validators. Yet, their distinctive features include:
- Anonymity. They are hard to track, so every transaction is untraceable and anonymous.
- Security. Privacy coins leverage advanced security protocols, such as ring signatures and stealth addresses, making it impossible to identify the parties of the transaction.
- Fungibility. They have an equal value between the assets, so can be mutually substituted for a simplified cryptocurrency exchange.
Monero is a private, decentralized crypto with a high level of anonymity. It was launched in 2014 by an anonymous team and showed resilient performance even during multiple bear markets in 2014, 2018, and 2022.
Monero is the only major privacy-focused cryptocurrency where every user is anonymous by default. Unlike Zcash, which gives you an option to carry a normal transaction or a shielded one, Monero hides the sender, receiver, and amount of every operation, making 100% of transactions completely anonymous.
It uses three technologies to keep transactions private. Stealth addresses allow the recipient to generate a one-time public address for a transaction. It ensures only the sender and recipient know that the transaction was made. With a ring signature, transaction outputs are untraceable, while RingCT hides the amount you send.
Similar to conventional cryptocurrencies, Monero uses a proof-of-work (PoW) consensus mechanism for validating transactions. Besides, it utilizes the RandomX algorithm, which is more resistant to application-specific integrated circuits (ASICs), giving miners a significant advantage over other miners.
You can mine Monero on any operating system, including Windows, macOS, and Linux. As miners validate transactions on the Monero blockchain, they earn rewards in the form of XMR coins.
Zcash (ZEC) is the second most popular privacy cryptocurrency after Monero. It was founded back in 2016 by a team of scientists with a focus on enhanced user privacy.
Zcash uses a zero-knowledge privacy protocol, which ensures privacy and anonymity for all users. It hides information about transactions and addresses on a public blockchain, and you can control to whom you want to disclose this sensitive data. This makes Zcash different from Monero, which is anonymous by default.
In other words, Zcash allows you to choose what type of transaction you want to make (public or private). Recent statistics suggest that Zcash was primarily used for transparent transactions, while we can trace a huge shift to fully shielded (private) operations in recent months.
The science behind Zcash mining is simple. New coins, ZECs, are created every time a new block is added to the Zcash blockchain. Usually, this process occurs once in every 2.5 minutes.
Just like Monero, Zcash uses a proof-of-work consensus mechanism for mining, which reduced the need for ASIC. Thus, you can start mining relatively quickly and without a huge upfront investment.
As the largest privacy coins, Monero and Zcash have their advocates and opponents. At the end of the day, your choice should come down to your preferences and intent. Many opt for Monero for their unlinkable transactions, while others are attracted by Zcash's option to choose between transparent and shielded transactions. So, whether Monero or Zcash, think of what level of privacy you want to get for your transactions.