The new tokens, namely, Zcash and Dash, are now available for the users of CEX.IO, the UK-based Bitcoin and altcoin exchange. The number of various cryptocurrencies available on the market has passed a thousand and counting. And the rivalry among altcoins grows in extensive volumes, whereas Bitcoin remains the top one. Every top altcoin has a certain niche on the cryptocurrency market, so do Zcash and Dash. What’s so special about these two and what are the specific services available for the users of CEX.IO?
How are they different from Bitcoin?
Bitcoin as a notion
Bitcoin is a breakthrough invention. It is the first ever payment system, with its own currency, that is fully decentralized and does not rely on any entity. It is now considered as the greatest discovery of the 21st century. After the surging success of Bitcoin, the enormous amounts of alternative coins, basically altcoins, have kicked in. Yet, the fact that Bitcoin was the groundbreaker in decentralized technologies, keeps it in the forefront.
Bitcoin’s capacity issues
However, there is the other side of this fact. The unexpectedly increased demand has, in some way, overburdened Bitcoin blockchain, leading to the capacity issue, which is now being actively solved. But for now, the fees in the network have increased and so has the time of processing the transaction.
This is why the demand for certain altcoins such as Ethereum, Dash and essentially Zcash has recently increased. Ethereum is well-known for its smart contracts. This feature distinguishes it from other altcoins and even provides a good challenge for Bitcoin itself. But, what’s so special about Dash and Zcash?
There is a specific niche on the cryptocurrency market – the niche of anonymous, or private cryptocurrency (it doesn’t actually have a specific title). Anyways, the main idea is to provide users with a supreme level of anonymity. Yes, Bitcoin transactions are kind of anonymous because you only see the public address which is a pseudo-random set of numbers. However, it is still possible to unveil the information about the sender and receiver. So, the cryptocurrencies with a fully anonymous payment system turned out to be essential for the market.
Zcash and Dash are representatives of the cryptocurrencies that, due to their specific technical solutions, provide more freedom for users with their anonymous transactions.
Zcash is just another cryptocurrency like Bitcoin. Like in the case of some other successful altcoins, the founder of Zcash came up with his own method of creating a cryptocurrency that takes all the greatness of Bitcoin, but at the same time broadens it. The goal of the team was to make a transparent blockchain (that’s a tautology, in fact), but at the same time anonymous.
Zero-knowledge protocol is the base of Zcash. It provides a solution to make a blockchain, which is open to everyone, but at the same time anonymous when it comes to transactions. You can only see the time of providing one, while the amount and the addresses of sender and receiver are encrypted.
The zero-knowledge method was invented in distant 1985. With its help, one can prove to another that he knows some ‘truth’ without actually revealing this ‘truth’. You can find lots of examples on the internet that will help you understand this method better.
The team of Zcash have found a way to implement this idea in the blockchain. Their technology makes it possible for the nodes of the network to validate the transaction without actually knowing the details of the transaction.
Zcash on the market
The price history of this coin is extraordinary. It has started from the incredible point of $4,200 per one token. It was about 6 Bitcoins at the moment. Then it passed through a colossal drop to $50. The interesting fact is that after such collapse the coin not only survived, but also remained in the top-ten cryptocurrency list.
Throughout the last year, the price has been through a constant increase, of course, not without the continuous pump and dump movements. Currently, it’s in the dump period. It is the time when the price goes down. Traders use this moment to buy more coins at a lower price, which is, currently, in the area of $200 per coin. Current market capitalization of Zcash is more than $400 million.
This one is a very promising project. Evan Duffield, the creator of Dash, with his development team set a challenge to create a Bitcoin-like cryptocurrency network that everyone, no matter the age or the area of interest, will be able to use easily. It reminds of what Bill Gates once said:
“A computer should be found in every home.”
In fact, anonymous transaction is only an additional feature included in Dash’s blockchain. You can either use it, or have it turned off.
It’s not based on the zero-knowledge algorithm like Zcash. Instead, they found another elegant way of solving the issue. Imagine yourself a pot, where everything is mingled. So, if you want your transaction to be anonymous, the network ‘puts’ it in this ‘pot’, where all the transactions and Dash tokens are mixed. On the way out, the proper amount of Dash gets to the recipient, although it is almost impossible to define where it came from.
This is another feature. By paying an extra fee, which is pitifully small compared to the ones in fiat ‘world’ and even in the Bitcoin network, you will send someone your Dash coins in a second. This is provided by applying the additional layer of network which is runned by master nodes. This feature practically made Dash one of the most adapted to the real world cryptocurrencies.
Dash on the market
Being the sixth coin according to the market cap, Dash has shown us a great upward movement in Spring-Summer 2017 and is undergoing the correction now. Today you can see a lot of individuals’ positive forecasts considering the future of this coin.
The developers are now working on Dash Evolution. It’s a significant network upgrade, which, as they say, will ultimately make Dash the most user-friendly cryptocurrency network. They compare it to a decentralized version of PayPal. If this happens successfully, there is no doubt that Dash will become the number one cryptocurrency applied in our every-day life.
Zcash and Dash on CEX.IO
This article aims to answer the following question: ”Why do I need to use these two coins?”. All that’s left is to know what specifically can you do with them.
With CEX.IO you will have the opportunity to trade new tokens, also deposit and withdraw them. Based on the data given on the website, which is market depth and price charts, you will be able to make well-considered decisions. While the two new tokens give more space for your trading solutions. To sell your Dash coins or hold them; to buy Zcash, Bitcoin and Ethereum or sell them for fiat (USD, EUR, GBP) before the price drops – it’s all up to you to decide. With CEX.IO user-friendly interface and high volatility, peculiar for all cryptocurrencies, the average CEX.IO user has a realizable chance to increase his funds greatly.
For now, all that’s left is some advice. You should always have an open ear to what others say, but take your time and get to the heart of the matter when it comes to your funds.