- ZCASH is at the $ 142.5 level with 14.91% in 24 hours and 54.66% gain from last week.
- ZEC coin uses zK Snarks technology which protects the transaction and reduces computational work
- Zcash uses “commitment” instead of UTXO, which is commonly used in Bitcoin to determine if transactions are spendable.
zK-Snarks is basically an abbreviated form of a succinct, non-interactive zero-knowledge argument. It is used to protect the transaction between sender and receiver without revealing much knowledge about both parties. Even recipients know less about the sender’s data. Transactions are verified in milliseconds and hundreds of bytes, unlike other coins.
Why is zK SNARKS required?
We have all heard people say that crypto coins are used for illegal activities. Illegal intentions and activities monitored on the blockchain ecosystem should face legal authorities, but what if the situation turns around? What if the government tracks your every transaction and uses them for its own benefit? Coins like Bitcoin are also traceable, which meets the need for the entire protected transaction. Zk snark is the step in this direction. It protects the transaction of Zcash and makes them untraceable.
How does zk SNARK work?
There is communication between the prover and the verifier at the initial level to set up an initial chain. When the initial chain is configured, a transaction validity function is created. The validity function of the transaction is now decomposed into an arithmetic function which is similar to Boolean circuits.
The next step is to create an RICS (rank 1 constraint system) to check if each value goes as expected. For example, your math function is (x + y) * z * k, now what RICS does is check if each variable is working as expected.
Now in zK SNARKs, if the Prover knows in advance which branch the verifier is going to check, it can enter invalid constraints in the branches and make other variables unacceptable.
CONFUSES? Let’s take a digital example to understand how encryption is handled in zk SNARKs. Suppose you want to add two numbers, say “3 + 4”, but you don’t know how to do it. So you turn to your friend for help, but you don’t want your friend to know the numbers. You encrypt them as “3 = 45” and “4 = 60” by multiplying 3 and 4 by “15”. Your friend adds up and returns the result to you as “105”. You divide 105 by 15 and decipher the number into 7. This is a basic idea used in zK SNARKs to encrypt confidential data which is taken as “3” and “4” in the example. It is also called homomorphic concealment (HH). At higher levels, the numbers are hidden over E (G) = k: where E (G) is an N degree polynomial. It uses prime numbers to encrypt by the A mod N method, quadratic arithmetic program or logarithmic values.
How are transactions processed in Zcash?
If you’ve ever traded through bitcoin, you might know that it determines whether or not a transaction is spendable by tracking unspent transactions (UTXO). What makes ZCASH unique is “engagement”. It is a shielded equivalent of UTXO and to spend it you need a “void” generated from the hash output of the previous transaction. Product commitment is recorded in each node, and all cancellers can then be quickly produced using it.
What if the noise generator is caught red-handed?
The community worried about this laggard and came up with a mechanism to generate a key for each transaction that miners and auditors could verify with less computing power.
As everything has two aspects, the same goes for Zcash. ZEC protocol can be used for illegal activities due to its encrypted techniques and protection from unwanted eyes. Technology has been a godsend and a pain. It depends on which hand it went through. Zcash is like the same thing; It may mark a new era in blockchain industry privacy.