Zcash price

FAQ About ZEC

• What is Zcash?

  Zcash (ZEC) is a decentralized cryptocurrency with a core focus on privacy and anonymity. Unlike many other cryptocurrencies, Zcash transactions ensure that the sending and receiving addresses, as well as the transaction amount, remain concealed by default. This enhanced privacy is made possible by zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) technology. This cryptographic innovation allows network nodes to validate transactions without disclosing any sensitive information, ensuring both security and confidentiality. Zcash's commitment to privacy has positioned it as a leading choice for users seeking to protect their financial data in the blockchain space.

• What is Zcash ($ZEC), and what is its primary technical distinction from Bitcoin (BTC)?

  Zcash is a decentralized cryptocurrency designed to offer high-level, verifiable privacy for transactions. Its primary distinction from Bitcoin is its use of Zero-Knowledge Proofs (ZKPs) to shield transaction details, while Bitcoin's transactions are fully public.

• What is the primary factor driving the market price of Binance-Peg ZEC?

  The primary factor is the market price of the native Zcash coin. Since the token is pegged 1:1, its price movement is a direct reflection of the underlying native $ZEC asset's valuation on global markets.

• What is the main price risk associated with holding Binance-Peg ZEC?

  The main risk is the "de-pegging" risk. This occurs if market conditions, bridge congestion, or custodian concerns cause the $ZEC (Binance-Peg) price to drop below the native $ZEC price, breaking the 1:1 anchor.

• Why would a user choose to use Binance-Peg ZEC instead of native Zcash?

  Users choose $ZEC (Binance-Peg) to benefit from the low transaction fees and fast block finality of the BNB Chain, making it cost-effective and quick to trade or use Zcash value in popular BSC DeFi applications.

• What is the Zcash protocol's limit on the total supply of the native asset?

  The native Zcash coin, which backs the pegged token, has a hard-capped maximum supply of 21 million coins. This scarcity is inherited by the pegged asset.