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Zcash Went Up

06/21/2019
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  • Zcash
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Network bandwidth increasing become a major blockchain issue. The Zcash team is confident that it managed to find a solution. Launching Zebra solution for the project’s public network allows to significantly increasing transactions speed. Against this background, Zcash cryptocurrency cost increased by a third in just a week.

Zcash Network Update

During the last month, Zcash blockchain capitalization has added more than 53%, overtaking most of the remaining cryptocurrencies by this indicator. Moreover, the increase was 33% already over the past week. Experts attribute this to the successful update of Zebra’s fourth version. It allows solving the issue of scalability and increasing network bandwidth.

Zebra solutions for Zcash network updates are being developed in collaboration with Parity Technologies. This is the fourth update, which allows coming close to solving the scalability issue.

As a result of increased demand, the daily Zcash trade turnover rose to $ 439 million. The price of one coin approached $ 112. Some traders believe that the asset is now at the peak of Bullish Trend, and when the resistance is broken through at $ 126, it can reach a level of $ 156. However, such forecasts will come true only if they really could cope with the scalability issue.

What is the Scalability Issue?

As far as is known, transactions number inside blockchain is limited. Thus, Bitcoin network processes only 3 operations per second; Ethereum was able to raise this figure to 12 operations. This was enough during the opening phase, but this is next to none now. The solution was found in Lightning Network and Plasma applications. The transactions there are processed outside blockchain, and only after that, the information is entered into the general block.

According to Vitaly Buterin, in the years ahead users will tend towards blockchains, where the network scalability issue was solved initially and without the involvement of third-party developments.

To solve the issue, some teams sacrificed decentralization, as EOS blockchain did. It was originally positioned as Ethereum killer. Now it manages to press a competitor. A growing number of developers are abandoning Ethereum in favor of EOS due to the higher operations processing speed.

Zcash Solution

Zk-SNARKs protocol, created by the Zcash team, can significantly increase transaction processing speed. It is able to compress a large amount of information, while leaving unchanged the evidence size. Vitaly Buterin said that with this solution’s implementation on Ethereum network, its throughput performance will increase from 12 to 500 operations per second.

Despite the desire to solve the issue of Ethereum network scalability, its capabilities still remain at the same level. As a result of the updates, it was possible to increase the speed only to 14 operations per second.

Earlier it was stated, that zk-SNARKs protocol would be used in the Ethereum team development. However, the fact that updating Ethereum network to version 2.0 has been postponed to the beginning of 2020 does not allow cryptocurrency to actively grow in price. Blockchain capitalization is more than $ 30 billion, and this puts it in the second place on the list. However, it is now lagging behind its competitors in terms of cost growth.

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