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Zcash Vs Monero

Private coins are a fascinating technology because they allow people to transact without leaving a record. As world-changing as Bitcoin is, one of its big drawbacks is that transactions are publicly recorded where anyone can see them.

The most beneficial feature of the privacy coin is not that you can use it anonymously on the darknet market. No, the best feature of privacy coins is that they are fungible.

Just as any $20 bill is worth any other $20 bill, the privacy coin cannot be “tainted”. Because of their fungibility, a merchant can accept a privacy-protecting coin without caring about where it came from.

As cryptocurrency adoption grows, we expect fungibility to become an increasingly important issue for everyone in the blockchain space. With that in mind, let’s start this article by comparing Zcash vs. Monero, two of the largest private coins on the market.

Zcash Vs Monero
Zcash Vs Monero

Zcash Vs Monero

When it comes to privacy, there is a big difference when comparing Monero vs. Zcash. The difference is that 100% of all Monero (XMR) transactions are anonymous. Monero transactions have always been private and always will be unless something goes terribly wrong.

Zcash (ZEC), on the other hand, gives users the option to send a normal transaction or a shielded transaction (private transaction). Recent statistics show that only about 6% of transactions on the Zcash network are fully protected and 15% partially.

The problem with this model is that since only a small percentage of transactions are private, sending a shadow transaction immediately attracts attention.

For example, imagine you are a regular Zcash user. Send 20 normal transactions in a row and then send the 21st transaction privately.

If someone were to examine your transaction history, the first thing they would ask is; Why did you choose to send this transaction privately? What did you feel the need to hide? This illustrates a fundamental problem with optional private transactions: they stick out.

This low percentage of private transactions also means that Zcash’s set of anonymity or other addresses/transactions that a user and their transactions can “hide” or merge with is small.

On Monero, all transactions are private, so they don’t stand out as much. This means that Monero has more anonymity settings and thus more privacy, as it is more difficult to find out who is on the receiving end of a private transaction.

However, what makes Monero stand out is… The fact that you are using Monero! If law enforcement is interested in your finances, they will likely want you to explain why you feel the need to transact in private cryptocurrency rather than Bitcoin.

In the future, this could harm Monero’s complete privacy from a regulatory perspective. However, it may well be years before regulators take a serious look at it. In the form of cryptocurrency today, your average person may, well, have heard of Bitcoin, but even that is not a given.

Monero and Zcash are so under the radar that they will likely be largely ignored for some time to come. However, this will not last forever. At some point, ZEC and XMR will face disproportionate attention from regulators.

Will they be banned? Heavily regulated? Have you run all major exchanges? But who’s to say that the risk of some government retaliation is negligible and should be taken into account when deciding whether or not to use one of these two coins.

Zcash Mining Vs. Monero

It would be difficult to argue that mining one coin is more profitable than another. After all, the profitability of mining can depend on:

  • Current hardware costs
  • Sale price of the coin
  • Current network hashrate

Probably the only common denominator in mining is the cost of electricity. So the best way to compare profitability is to use a mining calculator. The mining calculator is designed to take into account all current factors affecting profitability and give you an accurate idea of ​​how much you can earn.

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Disclaimer: Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).

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