Back in 2020, cryptocurrency and blockchain news feeds were buzzing with the word "halving". The Bitcoin mining rewards reduction event is long gone and left its mark on the market, but it was followed by another halving in November 2020 - the zcash halving. What was it?
WHAT IS A HALVING
The very meaning of the word "halving" is "splitting in half". It occurs every four years on the Bitcoin blockchain network. Halving means halving the amount of coins that miners receive for adding new transactions to the blockchain.
Halving has a series of consequences, including increased mining requirements, increased demand for mined coins, reduced issuance rates, etc. With the blockchain network halving every four years, the last Bitcoin will be mined in 2140.
Halving zcash 2020 was a highly anticipated event given the popularity of the coin.
WHAT IS ZCASH
Zcash is a decentralised cryptocurrency with a limit of 21 million coins. Unlike Bitcoin, Zcash offers full privacy.
Zcash launched as a fork of Bitcoin on 28 October 2016. It was previously called the Zerocoin protocol before it was transformed into the Zerocash system and then into Zcash. Zerocoin was developed as one of the first cryptocurrencies to offer complete anonymity to blockchain transactions. Zerocoin launched its currency Zcoin (XZC) in September 2016. After the release, the founders of Zcash kept 10% of the total number of coins. The rest of the coins are gradually coming into circulation through mining and investment.
Most cryptocurrencies verify transactions by linking sender and receiver addresses to input and output values in a public blockchain. As a publicly encrypted blockchain, Zcash uses zero-disclosure cryptography, which allows users to further protect their transactions with a new 'zero-disclosure proof' called zk-SNARK. These proofs can confirm that transactions are valid in the blockchain registry without revealing any sensitive information.
While many other cryptocurrencies use complex algorithms that require large pools to effectively mine the currency, Equihash was designed to combat the centralisation of mining. This system is memory-centric, meaning that the amount of mining that can be done is determined by the amount of RAM available.
ZCASH HALVING: BOTTOM LINE
The halving of cryptocurrency zcash is coming as a mandatory event for its blockchain. A zec halving happens every four years. The initial reward per block of Zcash was 12.5 ZEC, the new reward per block will be 3.125 ZEC. Halving-zcash reduces the rate of Zcash generation. The zcash-halving-2020 was estimated to occur on 18 November 2020 at 11:09 UTC, and this prediction paid off.
There is also a halving-zcash counter on the cryptocurrency's official website that tracks blocks in real-time. According to it, there are just under 1,300 days until the next halving.
The total amount of ZEC mined by miners per block with halving-zcash is decreasing. Halving-zcash was accompanied by the fifth major update to the Zcash network - Canopy - which led to the termination of the Zcash founders reward.
Halving-zcash is dependent on the blockchain interval. This means that an event will occur when the blockchain reaches a certain interval. According to the Zcash Blossom Upgrade, the block interval has been halved to 1046400. Based on the current estimate of 75 seconds per block, halving will occur in November 2020. The same estimate of 75 seconds per block remains valid for the next halving-zcash-2024.
Despite the positive developments, the halving and the Canopy update had no impact on the ZEC exchange rate. On the contrary, the overall market upturn has led to the cryptocurrency's value rising from $30 (January 2021) to $350 (May 2021). The Zcash development team, Electric Coin Company, has confirmed another update to the Halo Arc, which will be rolled out by October 2021. Its main idea is to abandon zk-SNARK verification technology in favour of the Halo system.
ADVANTAGES OF ZCASH
Despite halving zcash 2020, the coin has many advantages. Among them are the following.
Privacy - Zcash offers the ability to secure transactions and hide the identity of the sender and recipient in the blockchain.
The zk-SNARK technology has potential applications beyond payment transactions and can be used to verify any relationship without revealing inputs or leaking information.
High security, as Zcash hides the number of coins in a shielded transaction, it is much less vulnerable to timing attacks.
Easily accessible mining via Equihash, which allows miners to mine ZEC using freely available GPU hardware.
WHERE BEST TO BUY
Despite halving ZEC-2020, the cryptocurrency can be bought on most major exchanges, which give you the convenience of purchasing it with low commissions.
ZEC can also be purchased on the Broex platform. The platform offers several advantages, such as high transaction speeds, which ensure that coins are sent to the buyer's account in less than five minutes. Other advantages of Broex include high security with a secure online wallet, an intuitive and straightforward interface and the lowest commissions on the market of less than 1%.
The date of halving-zcash-2020 and halving-zcash-2024 is not chosen randomly and is based on a clear algorithm. Also, the halving-zec-2024 counter can be found on many resources given the popularity and usage of this cryptocurrency in the market.