What Is the Primary Difference in the Consensus Mechanism of Zcash Compared to Bitcoin, despite Both Being PoW?
Both Zcash and Bitcoin use a Proof-of-Work (PoW) consensus mechanism, but they differ in the specific hashing algorithm. Bitcoin uses SHA-256, while Zcash uses Equihash (a memory-hard algorithm).
Equihash was initially designed to be more resistant to specialized ASIC hardware, aiming for more decentralized mining via general-purpose CPUs and GPUs, though ASICs have since been developed for it.
Glossar
Zcash
Cryptocurrency ⎊ This digital asset utilizes advanced cryptographic techniques, primarily ring signatures and stealth addresses, to ensure that all transactions remain confidential regarding sender, receiver, and value.
Decentralized Mining
Concept ⎊ Decentralized mining refers to the process where numerous independent participants contribute computational power to validate transactions and secure a blockchain network.
Consensus Mechanism
Validation ⎊ Consensus mechanisms, within cryptocurrency, represent the procedural logic ensuring state agreement across a distributed network, critical for preventing double-spending and maintaining data integrity; their design directly impacts network security and scalability, influencing transaction throughput and finality times, particularly relevant in decentralized finance applications.