WHICH IS BETTER?
Zcash vs Dash
A Complete Comparison and All Pros/Cons of Zcash vs Dash
Zcash versus Dash? Both cryptocurrencies are very popular as they offer superior privacy and anonymity compared to Bitcoin. But how are they different? How do they compare? Which will perform better? We have been asked these questions repeatedly, hence, this Zcash vs Dash comparison guide.
At the moment, there is a heated debate on different online forums on which of these two privacy coins is more anonymous. While both are the most compared, they each have their own pros and cons. In this Zcash versus Dash guide, we will dig deep into each of these altcoins to uncover valuable information that will help you decide on which offers more anonymity.
This comparison guide will also help those seeking to invest in one or both of them in 2020 to make an educated decision. This is a complete Zcash vs Dash comparison guide with everything you need to know. So, you should first read this guide if you’re thinking about investing in them as we have done in-depth research in both of these coins.
So without further ado, let’s begin this Zcash vs Dash guide. We begin with looking at our side-by-side comparison →
Top 3 Crypto Exchanges - September 2020
Welcome to CryptoRunner! I’m David Andersson, co-founder of this site.
We understand that cryptocurrencies can be confusing and frustrating. That’s why we are here to help you.
The summary table below shows some important figures to compare. Which numbers are the most important? That depends on who you ask. You should continue reading the guide to learn about all the differences. If you want to choose the best cryptocurrency for you, it’s not enough to compare some numbers. However, let’s start by comparing Zcash with Dash →
Zcash vs Dash
|Zcash (ZEC)||Dash (DASH)|
|Normal Description||Private digital cash||Decentralised digital cash|
|The Founders||Zooko Wilcox||Evan Duffield|
|Launch Date||October 28, 2016||January 18, 2014|
|Total Supply||21 million||8.8 million|
|Block Size Limit||2 MB||2 MB|
|Block Confirmation Time||2.5 minutes||2.5 minutes|
|Current Block Reward||12.5 tokens per block||45% per block|
|Smallest Unit||0.00000001 ZEC||0.00000001 DASH|
ZCash History, Pros & Cons
History of ZCash
Most conversations about ZCash (ZEC) often begin and end with the flagship cryptocurrency, Bitcoin. Why? Because it was the first digital coin to emerge in the world. Bitcoin, which is a decade old, was launched on January 3, 2009, by a pseudonym Satoshi Nakamoto, of either a group of people or an individual.
It was, however, designed so that each and every transaction conducted on a BTC wallet address is made public and traceable, with the purpose of curbing corrupt and malicious practices. While this feature is a welcome development, it, however, compromises the privacy of its users since they are required to disclose their identity in order to use Bitcoin.
Zcash was a fork of Bitcoin
Understandably, many in the crypto community were displeased with this non-privacy feature on BTC blockchain and they considered it as a flaw. As a result, Bitcoin blockchain was forked on October 28, 2016, and gave birth to Zcash. This was done by the firm which recently rebranded its name to Electric Coin Company and has Zooko Wilcox as its founder and CEO.
This newborn coin offers its users complete transaction privacy as many have the notion that there is nothing wrong in wanting a little bit of privacy. This privacy protection is made possible as Zcash uses a breakthrough technology known as zk-SNARK (Zero-knowledge Succinct Non-Interactive Argument of Knowledge).
It is worthy of note, that Zcash cryptocurrency, like Bitcoin, can expose the entire payment history which is published on the public blockchain. However, ZEC offers users two different addresses, one is public like Bitcoin, the other fully private, thus making it possible for them to choose an optional privacy feature to shield important information.
What is Zk-SNARK?
zk-SNARK is a new cryptographic method that ensures all information concerning sender, receiver, and amount on the blockchain is concealed while also preventing double-spending, an important feature that adds to the success of cryptocurrency architecture. In other words, it is a way of interacting with anonymous parties in a secure manner without divulging private details while also allowing the network to confirm and verify transactions.
This protocol is very unlike other systems of proof where at least one party knows important details like the identities of users. While this algorithm was recently developed in 2014 by 3 scientists and research cryptographers (Shafi Goldwasser, Silvio Micali and Charles Rackoff), zk-SNARK has been in existence since the 1980s and was first constructed in a paper in 1992 by Joe Killian. Read more about zk-SNARKs on the Zcash website.
Now that you’ve known the background of ZCash, let’s now take a step further in this Zcash vs Dash debate and highlight the pros and cons of Zcash →
Zcash Pros and Cons
Pros of Zcash
The following reasons are why people prefer Zcash over other major cryptocurrencies:
- Privacy: As we have already mentioned above, Zcash uses zk-SNARKs’ privacy protection technology that is specially designed to shield the addresses of both the sender and the receiver and it also hides the amount being sent. Hence, big companies and wealthy people leverage on this high level of privacy.
- Interchangeability: Zcash is completely fungible or interchangeable due to its privacy and anonymity. In other words, the unit or block of Zcash can be mutually substituted for any other unit with equal value to all other coins.
- ASIC-resistant: ZCash is specially designed to be more energy-efficient when mining, unlike ASIC, which consumes more electricity than CPUs and GPUs.
Cons of Zcash
Zcash has its own fair share of flaws. The following are the obstacles ZEC couldn’t avoid:
- Privacy: While privacy and anonymity are preferred by most users, it is worthy of note that the privacy coin can be abused and used for illegal cash activities. However, this is an advantage in most cases.
- Fee: Transaction fee is higher if you do choose to hide your address.
- Mining: While it was designed specifically for Linux users, Zcash is restricted only to CPU mining.
Dash History, Pros & Cons
Dash, a peer-to-peer decentralized electronic form of payment, was launched on January 18, 2014, after much research and months of hard work. It was created and designed by Evan Duffield who believes that crypto users should be able to enjoy privacy as well as anonymity.
It was originally known as XCoin. However, the name went through some transformation. In February 2014, it was rebranded as “Darkcoin”. According to the developer, this name got in the way of accomplishing their mission as many thought it was associated with illicit activities. As a result, Darkcoin was changed to “Dash”, an abbreviation of “Digital Cash”. This was on March 25, 2015. This name reflects the true vision of Duffield.
Faster and more private transactions
As we have discussed above, one of Bitcoin’s major flaws which are yet solved is the absence of privacy and slow transactions speed. Just like Zcash, this drawback resulted in a fork of the Bitcoin protocol, which gave birth to Dash, one of the contenders in the breed of anonymous cryptocurrencies. In other words, the creation of Dash was to improve Bitcoin’s shortcomings; to make transactions in a more private and speedy manner.
To achieve this goal, a unique network of servers called “masternodes” was developed. It is the backbone of Dash as they are responsible for specialized transactions for both “PrivateSend” and “InstantSend”. They also control the development of the network. What is more, Dash uses the X11 algorithm.
Dash X11 Algorithm In Brief
X11 is a proof-of-work (PoW) hashing algorithm that was also created by core developer Evan Duffield and implemented into Dash protocol in 2014. It is a very effective and unique algorithm that was well received by miners due to the fact that it is energy-efficient when mining with a home rig.
It is also an algorithm of choice because, for a time, it was resistant to ASICs (Application-Specific Integrated Circuits) due to its complexity. As the name suggests, the algorithm uses 11 different hashes, thus making it one of the safest and most advanced hashes in use by cryptocurrencies today.
At the moment, about 106 cryptocurrencies are using the X11 algorithm. It is worthy of note, that more algorithms have been developed to include more hashing functions, these are X13, X14, X15, and X17.
Next, we will view all advantages and disadvantages with Dash →
Dash Pros and Cons
Pros of Dash
The following are some interesting features that make Dash popular:
- Privacy: Dash solves the problem of privacy by ensuring that the transaction details of users are hidden when the PrivateSend method implemented, thus, making it difficult for external observers to determine the source of the funds.
- Speed: Dash cryptocurrency has gained popularity as it uses InstantSend, a unique technology that ensures that transactions are made almost instantaneously; less than 4 seconds.
- Fees: Transaction fees are significantly lower when compared with other networks.
- Block Rewards: Both miners and masternodes receive 45% rewards for their contributions of securing the network or adding unique features like InstantSend. 10% of these rewards goes to the funding pool and are used to incentivize and to support the development of Dash.
- Decentralization: Unlike major cryptocurrencies projects, Dash is more decentralized and this is accomplished through democratic voting of the masternodes which allows for quick decision making.
Cons of Dash
The following are the challenges that Dash faces which you need to watch out for before you invest in it.
- Legitimacy issues: Dash critics claim that a huge amount (2 million of the total 18 million coins) of masternodes belong to the core development team. This has casts doubts over the legitimacy of Dash’s decentralization.
- Privacy Issues: Dash’s privacy feature, PrivateSend is said to be nothing more than a coin tumble. In other words, it can be traced if someone gains control of the masternodes that the transaction passes through.
- Competition: Dash faces stiff competition with other breeds of privacy coins like Zcash and Monero as critics say the later is better than the former in terms of privacy.
Differences of Zcash vs Dash
While a lot of information about the difference between Zcash vs Dash is available online, it, however, comes down to the following:
- Date of Launch – Dash is the older altcoin, as it was launched in 2014, while Zcash has only been around since October 2016.
- Privacy Features – Zcash network claims to provide a more secure and private transaction as it based on zk-SNARKs, which encrypts both the sender and recipient’s addresses, as well as the amount sent. On the other hand, Dash offers increased privacy and anonymity when it’s needed through its PrivateSend wallet feature. Otherwise, transactions can be made without privacy safeguard like any other cryptocurrency.
- Proof of Work: Zcash PoW algorithm is Equihash while Dash uses a hybrid PoW/PoS (Proof of Stake).
- Mining Rewards: For Zcash, 12.5 ZEC from a total of 50 Zcash are issued to miners in every 10 minutes. While 10% of all coins mined goes to the founder’s reward. Meanwhile, the mining rewards for Dash are split in three, 45% for miners, 45% for Masternodes while 10% goes for funding of Dash development. This means that Dash is self-funded.
- Block Reward Halving: Zcash block reward is subject to halving in every 4 years just like Bitcoin. However, there are no halvings in Dash as it decreases by 7% annually.
- Amount of Coins: With Zcash, there will be a total of 21 million ZEC issued. It remains to be known when ZEC will be completely mined. In contrast, Dash has a maximum supply of 18.9 million coins. Currently, over 8.8 million coins have been mined. All 18.9 million Dash coins expected to be mined by 2050.
Now that we have contrasted Zcash vs Dash, you now know what you are getting into. However, the question remains, which one of them is more anonymous? Let us do a little more comparison.
Which Is Most Anonymous?
As mentioned earlier, Dash offers the options of doing a private or a public transaction like Bitcoin. Nevertheless, Dash, being an anonymous altcoin has gained popularity for its privacy through the use of is unique PrivateSend wallet feature. It is worthy of note, that this privacy feature does not send coins directly from one Dash address to another.
Rather, when a user takes advantage of the PrivateSend function, the sent coins are repeatedly deposited into several dummy Dash wallet addresses until the receiver’s address is credited with funds. At the end of the transaction process, it becomes impossible to trace the origin of the coins.
Dash PrivateSend is mixing your transaction
This process is dubbed “mixing”. Note that while the origin of the coins is obfuscated, the receiver of the coin can still be seen. This means that the network is not completely private, thus raising the question of how reliable this service is as to helping users remains anonymous.
When you initiate a transaction, you’ll have to depend on the recipient of the coin to break the connection by using the PrivateSend feature. If an anonymous transaction is connected to non-private transaction, there is a possibility that it could be traced.
Zcash claims to be more anonymous
Or the other hand, Zcash transactions can also be private or public depending on the wish of the user. The developers of this coin claim that it is more private and secure than any other cryptos due to the fact that the network is based on the zk-SNARKs protocol. In other words, transactions are verifiable only on true-false statements.
With this cryptographic method, the identities of senders and recipients along with the amount sent are kept hidden. The only thing revealed by the ledger is the time the transaction took place. Most developers prefer this method as they refer to it as a kind of ‘https’ security standard for money. Therefore, we feel that Zcash is the most anonymous coin at the moment.
That said, between Zcash vs Dash, which one of them do we think will outperform?
Zcash vs Dash - Which Is Better?
Zcash, which has been performing pretty well since its inception, some investors are excited and optimistic this year as the team behind the coin have launched a reference wallet for Android-based mobile devices.
This is a blueprint on how to create a mobile wallet. The plan is to use this release to run a demo test and get feedback from different developers regarding any bugs – before the official release of the wallet. This move may result in increased adoption of Zcash in the near future since interaction with the users will build a sense of trust.
Zcash is working on an updated version
What is more, there’s scope to innovate as ZEC development team is making plans to include more updates to fix Zcash scalability issue; thus making an unlimited number of transactions a reality. In addition, a newer version of Zcash will be launched in 2019.
Meanwhile, Dash is definitely a cryptocurrency worth looking at as it is expected to be among the biggest gainers. This coin is already syndicated with different payment programs. For example, Dash charity program in Venezuela was a great success, according to reports.
Dash is growing among businesses
Apart from charity activities, Dash is used for exchanges by more than 47 businesses in Caracas, the capital of Venezuela, while there are about 30 in the U.K… This is a clear indication of the most significant advantage of Dash. Its accessibility helps shield people from unwise decisions made by the government, and also a huge advantage when talking about investing in Dash. As a matter of fact, some most ambitious forecasts, Dash price might reach $1000 soon.
Which Should You Buy?
After a careful analysis of both altcoins, your choice on which is the best depends on the various factors that surround Zcash vs Dash. This also includes your use case or how much confidence you have in the creators of each one of them. It is also worth noting that the underlying protocols and systems behind Zcash vs Dash are constantly being developed.
As such, one that is lagging behind right now might be rolling out improvements very soon. If nothing else, buying both Zcash and Dash is encouraged with the purpose of building a diversified long-term portfolio.
Between Zcash vs Dash, which one will you buy? Let us know in the comments section! Below, you will also find the best exchange for buying both cryptocurrencies →