The key difference between zcash and bitcoin
In the world of cryptocurrencies, it is important to understand what technology stands behind the coin that you want to purchase. This is why before you exchange ZEC to BTC you should first understand the differences between these two currencies.
Launched in 2008, Bitcoin is the first cryptocurrency and the father of all digital coins that are now presented in the market. It allows to make instant transactions between two parties without any bank of financial institution to govern it. All the transactions are written to the public ledger and you can see the wallet addresses that have made an exchange. The cryptocurrency wallet prices represent a huge mix of digits and numbers and it is very difficult to find out the owner of the wallet.
However, it is not totally impossible with Bitcoin. Zcash Is the fork on Bitcoin and has the same features with enhanced privacy. Zcash uses shielded transactions to make them totally invisible in the network. You may still want to exchange this untraceable currency and convert Zcash to BTC for the reasons of profitability.
What is Bitcoin mining algorithm?
New bitcoins are obtained with the help of the Proof-of-Work (PoW) mining algorithm. The network of special equipment called ASICs conducts operations in order to resolve computational problems. As a result of these operations, the new blocks are created and the miners who find these blocks get their rewards. Whenever users exchange bitcoins between each other, the information about this transaction is written into all of these blocks which makes it impossible to change the information and makes transactions irreversible.
What is Zcash mining algorithm?
As Zcash is the fork of Bitcoin, it has the same mining algorithm, but there are some differences. With Zcash, 10% of the block reward is distributed to stakeholders of Zcash company. This will happen for the first 4 years of the coin’s existence (i.e. from 2016 till 2020). After that, the miners will receive 100% of the reward.
Zcash utilizes the Equihash algorithm which can’t be applied on ASICs, but can be used on the consumer-grade hardware. Keep this fact in mind if you have decided to get rid of your ZEC supply and exchange Zcash to Bitcoin.
The circulating supply of Zcash equals to 6,612,569, while its maximum supply equals to 17,722,225.
For Bitcoin, the circulating supply equals to emission infinite, while its maximum supply equals to 21,000,000.
If you want to convert ZEC to Bitcoin, the market capitalization is a very important index that you should pay attention to.
For ZEC, the current market capitalization equals to $479,709,852.00. Bitcoin’s capitalization equals to $142,709,917,866.00.
Volume of transactions
During the last 24 hours, ZEC’s volume of transaction equals to $262,428,528.85. For Bitcoin, this index equals to $22,045,452,992.53.
Average transaction speed
As Bitcoin block size is very small and it can process 7 transactions per second at the maximum, it usually takes up to several hours for a transaction to be confirmed in the network. In the best conditions, when the network is not overloaded, it may take around half an hour.
Zcash works a little bit faster, but you will still have to wait for some time if you exchange ZEC to BTC.