Blockchain Investor Analysis

Zcash

ZEC
Current Price $52.16 (-1.27%)
Zcash (ZEC) is a hard fork of Bitcoin that focuses on providing security, privacy, and anonymity. Like Bitcoin, Zcash offers a total supply of 21 million tokens. However, ZEC wants to improve on the original digital coin by offering a more secure and private form of payment.

Our Rating:

Market

Problem that it solves

Zcash is a privacy coin. Premissionless and secure, ZEC is a digital currency that protects all your transactional privacy.

Customers

Zcash users are those who want to perform transactions privately. An example of this might be someone who wants to pay for a software solution without leaving a trail.

Value creation

Zcash is an ideal coin for anyone who regularly performs private transactions or doesn't want their transaction information available in a public forum.

Market structure

The market for Zcash are for those who value privacy over anonymity. Exchanges know who is using Zcash due to their willingness to comply with KYC. What they don't know is what they are using it for.

Market size

Market potential for Zcash is large as it provides a way for people to perform transactions with privacy and security.

Regulatory risks

There are countries that are considering banning coins that focus on privacy in an effort to minimize nefarious transactions.

Average Market Score

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Competitive Advantage

Technology/blockchain platform

Zcash is a fork of Bitcoin that has built of the pioneering protocol to enable private transactions through the use of zero-knowledge proofs.

Lead time advantage

ZEC is one of most recognized privacy coins in the market.

Contacts and networks

The team has many key players within the industry as either part of its core team or as advisors on the project, so it has no issues with accessing the necessary people/parties.

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Management Team

Entrepreneurial Team

Founder Zooko Wilcox has a history of developing successful network protocols that focus on self-contained economies. The team also has many top-quality engineers and developers.

Industry/technical experience

The team driving the Zcash project easily meets the 10,000 hours of experience criteria in the digital asset industry.

Integrity

The Zcash team shows transparency and honest in its projects, providing regular development updates to its users. However, the introduction of the founder's reward, which gives a share of mining rewards to the project's founders, has been heavily critized by the community.

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Token Mechanics

Token required

Zcash is a decentralized digital currency used for payments and private transactions.

Value added

ZEC is one of many 'privacy' coins, including Monero, which is one of the most recognized names in the privacy coin market.

Decentralized

Zcash is one of the most decentralized projects in the digital asset markets.

Token supply

Just like Bitcoin, Zcash has exactly 21 million coins in its supply.

Public exchange

ZEC is listed on many leading exchanges. However, some exchanges delisted the coin due to its privacy features (following regulatory pressure).

MVP

The Zcash blockchain has been up-and-running since 2016.

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User Adoption

Technical difficulty

With its zero-knowledge technology, Zcash can be difficult for the layperson to understand. What people do understand is privacy and security, which is what the coin will use to attract users.

Halo Effect

Zcash has a star-studded team of developers and advisors. However, it has been playing second fiddle to Monero in the privacy coin community.

Buzz

Zcash is one of the most well-know privacy coins and has a solid following on social media. However, after its initial launch hype in 2016, the buzz surrounding ZEC has worn off. Especially since the coin lost a substantial amount of its value since launch.

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Overall Score

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Blockchain Investor Analysis

ZCash is a digital currency that focuses on giving its users a way to perform transactions in a private and anonymous fashion. However, ZCash is a project that has plenty of competition, including Monero, which is one of the more recognizable coins in the private coin market.

ZCash has a lot going for it though, including a quality team and high-profile advisors. However, the project has also faced criticism for its "founder's reward," which has made his founders rich while holders of the coin have lost over 95 percent of their investment value since the altcoin market's all-time high in January 2018.

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