The world of digital currencies is developing at an increased pace. The overall market cap keeps on growing and has already broken its previous records. It is the mining process that has given value to cryptocurrencies – with Bitcoin, the primary digital currency, leading them all.
In stark contrast to fiat currencies which are still being dispensed as banknotes or bills by central bodies, more specifically the governments and the banks, coin creation in the world of digital currencies is fully decentralized. Digital currencies are decentralized simply owing to the fact that the blockchain technology is the driving force behind this innovation.
Zcash (also known as ZEC) is originally based on the core Bitcoin blockchain, which comes with an added anonymity feature. While the Bitcoin blockchain allows users to view the transactions that have taken place between different addresses, Zcash ensures the security of its network by hiding the transaction details which include information of the sender, receiver and the transaction amount. Zcash currently has a market cap of $500 million and stands among the top 10 cryptocurrencies in the world.
It has been quite some time since Zcash hit the market. However, it is nowhere close to the size of the or the Ethereum network. This is one of the major reasons why it is still profitable to mine ZEC. When Zcash entered the crypto market for the first time in 2016, it was extremely profitable. This was also because of the fact that initially, only 12 ZEC coins were in circulation at that time, which led to the price of 1 ZEC soaring as high as 3000 Bitcoins.
It is important to understand that the processing of transactions solely depends on the miners who are part of the ZEC network. It is important to remain cautious when you are running a PC for extended hours and utilizing high processing power. At the same time, mining profitability also depends on the market fluctuations in the exchange rates and variations in the difficulty level of mining. These are the 2 notable factors which affect a miner’s performance.
As an anonymous currency, Zcash uses the zk-snarks protocol, so as to make sure that the data with respect to the user transactions have been safely encrypted, but can still be verified by miners to ensure that no double-spending has occurred through zero knowledge proofs.
ZEC makes use of Equihash, a hashing algorithm that has an asymmetric memory-bound PoW algorithm which is based on the generalized birthday problem. It demands excessive RAM requirements to bottleneck proof generation, making ASIC advancement impracticable, just like Ethereum.
Not every person possesses a PC or is capable of using it, and not every person got relevant knowledge, time, or persistence to mine Zcash all alone, more so because there isn’t any GUI or Graphic User Interface Miner accessible as yet. In the event that you wish to make a good profit without much of an effort, then is the option to go with.
A Zcash mining pool allows you to contribute your processing power along with the other members on the network. All you have to do is connect your hardware to your preferred ZEC pool with a mining software and you are ready to mine Ethereum without much of an effort. However, the problem with a mining pool is that your mining reward will be reduced and you will have to share it with your peers based on the contributed processing power.
A mining calculator lets you calculate your profits so that you get an idea as to how much you are going to make. You basically need to take into account the processing power or the hash rate generated by your mining device, the electricity charges on an average and the time invested in mining ZEC. When it comes to Zcash mining pools, it is best to join a and earn steady returns. You neither have to purchase a mining equipment nor pay for the exorbitant electricity charges. All you have to do is purchase a mining contract which lets you rent the processing power of powerful mining rigs located in remote server farms.