What is Zcash (ZEC)?
Zcash (ZEC) offers optional privacy. You choose: transparent transactions (like Bitcoin) or shielded ones (encrypted). Built on Bitcoin's code with zk-SNARKs for privacy. Public blockchain security, financial privacy when you want it.
Key Facts
What is Zcash?
Zcash is a cryptocurrency with optional privacy. Launched in 2016. Uses zk-SNARKs to encrypt sender, recipient, and amount on shielded transactions - while still being on a public blockchain.
Unlike Bitcoin (all public), Zcash gives you two address types:
- • T-addresses: Transparent. Works like Bitcoin.
- • Z-addresses: Shielded. Strong privacy.
Privacy for individuals. Transparency for compliance. Your choice.
ZEC is the native token. 21 million max supply (like Bitcoin). Halvings every ~4 years. Bitcoin's monetary policy with optional privacy.
Who Created Zcash? A Brief History
Origins: From Zerocoin to Zcash
Started as Zerocoin (2013) by Johns Hopkins cryptographers. A privacy extension for Bitcoin. Evolved into Zerocash. In 2016, the Electric Coin Company (ECC) launched Zcash as an independent blockchain.
The Launch and "Ceremony"
Launched October 28, 2016. Required a "trusted setup" ceremony to generate zk-SNARK parameters. Multiple participants contributed randomness - if even one destroyed their contribution, the system stays secure. Later upgrades (Sapling, Orchard) improved this process.
Key Milestones
- • 2016: Zcash mainnet launches with Sprout shielded transactions.
- • 2018: Sapling upgrade dramatically improves shielded transaction speed and memory requirements.
- • 2020: First halving reduces block reward from 6.25 ZEC to 3.125 ZEC. Canopy upgrade removes the Founders' Reward.
- • 2022: Orchard upgrade introduces a new shielded pool with improved cryptography (Halo 2) eliminating the need for trusted setups.
- • 2024: Continued development focuses on improved privacy defaults and user experience.
Governance Structure
- • Electric Coin Company (ECC): Core protocol development
- • Zcash Foundation: Ecosystem growth, community governance
- • Community Grants: Open contribution funding
Distributed governance. No single entity controls Zcash.
How Zcash Works
Built on Bitcoin's code with a privacy layer. Transparent or shielded - your choice.
Zero-Knowledge Proofs (zk-SNARKs)
zk-SNARKs let you prove something is true without revealing the underlying info. In Zcash: prove a transaction is valid (enough funds, no double-spend) without revealing sender, recipient, or amount.
Transparent vs Shielded Addresses
- • T-addresses (starts with "t"): Like Bitcoin. Publicly visible.
- • Z-addresses (starts with "z"): Encrypted. Only viewing/spending key holders can see.
Mix and match: t-to-t (transparent), z-to-z (shielded), t-to-z (shielding), z-to-t (deshielding). Each has different privacy levels.
Viewing Keys and Selective Disclosure
Share a viewing key with auditors or regulators. Proves your history without giving spending control. Compliance-friendly while keeping privacy as default.
Supply and Tokenomics
21 million ZEC max (like Bitcoin). Halvings every ~4 years. ~75-second blocks (vs Bitcoin's 10 minutes).
| Halving Event | Approximate Date | Block Reward |
|---|---|---|
| Genesis | October 2016 | 12.5 ZEC |
| 1st Halving | November 2020 | 6.25 ZEC → 3.125 ZEC |
| 2nd Halving | ~2024 | 1.5625 ZEC |
| 3rd Halving | ~2028 | 0.78125 ZEC |
How to Mine Zcash
What is Zcash mining?
Proof-of-Work using Equihash algorithm. Memory-hard, originally ASIC-resistant (but ASICs exist now). ~75-second blocks, faster than Bitcoin.
Mining hardware
Equihash was designed for GPUs (high memory needs). But now:
- • ASICs (Antminer Z15) dominate
- • GPU mining possible but less profitable
- • Industrial operations have economic advantage
Mining pools
Most join pools for steady payouts. Popular: Flypool, 2Miners, F2Pool. Fees: 1-2%. Payouts based on hashrate contribution.
Profitability considerations
Depends on electricity, hardware, ZEC price, difficulty. Home GPU mining usually not profitable. Use calculators before buying hardware. Many find it easier to just buy ZEC.
Why Zcash Has Value
Bitcoin's monetary properties + privacy tech:
- • 21 million max supply
- • Predictable halvings
- • Strong cryptographic security
Privacy value: Shielded transactions protect sensitive info - salaries, business deals, donations. No third-party trust needed.
Optional transparency: Viewing keys enable compliance when needed. More versatile than privacy-only coins. Balance of privacy and auditability positions Zcash for broader adoption.
How to Buy Zcash
Some exchanges have delisted privacy coins. Check availability in your region first.
1Compare providers
Kraken, Gemini, Binance list ZEC (varies by country). Coinbase delisted in some regions. Compare fees, spreads, and payment methods.
2Create an account
KYC verification: government ID. Takes hours to days. Enable 2FA.
3Fund your account
Bank transfer (cheaper, slower), card (instant, higher fees), or crypto deposit.
4Buy ZEC
Market order for instant buy. Limit order for your target price. Start small to test.
5Withdraw to your wallet
For privacy and security, use a personal wallet. Choose a z-address for shielded storage.
Next step: Compare ZEC providers in your country to find the best price.
How to Store Zcash
Wallet Options
- • Full shielded support: zcashd (official), Zecwallet Lite, Nighthawk, Ywallet
- • Transparent only: Most hardware wallets and some mobile apps
For privacy, pick a wallet that supports z-addresses.
Hardware Wallets
Ledger and Trezor support ZEC but usually only t-addresses (shielded is computationally heavy). Trade-off: hardware security vs full privacy.
Security
24-word seed phrase. Write it down, store offline, never share. Anyone with your seed owns your funds. Enable encryption and PIN protection if available.
How to Use Zcash (ZEC)
Private Payments
Primary use case. Shielded transactions protect salaries, business payments, donations. No public trail. Valuable for anyone needing financial confidentiality.
Cross-Border Remittances
Send ZEC globally 24/7 with optional privacy. Lower fees and faster than traditional remittances. Good for limited banking access or privacy-sensitive regions.
Store of Value
21 million max, halvings reduce new supply. Bitcoin's monetary properties with optional privacy.
Compliance and Auditing
Share viewing keys with auditors without exposing spending ability. Privacy + accountability for regulated entities.
Risks
- • Price volatility (like all crypto)
- • Self-custody security risks
- • Regulatory scrutiny on privacy coins
- • Some exchanges have delisted ZEC
- • Liquidity and access may vary by region
Notable People in Zcash
Built by world-class cryptographers. Key figures:
Zooko Wilcox-O'Hearn
Founder and CEO of ECC. Cypherpunk with decades in cryptography. Led zero-knowledge proofs into cryptocurrency.
Matthew Green
Johns Hopkins professor. Co-authored Zerocoin paper. Founding scientist and ongoing advisor.
Jack Gavigan
Executive Director of Zcash Foundation. Supports development, governance, and ecosystem.
Sean Bowe
ECC engineer. Built Sapling upgrade and Halo proving system (no more trusted setups).
Regulation Overview for Zcash
Privacy Coins and Regulation
Privacy coins face extra scrutiny. Some exchanges have delisted them. Zcash's viewing keys provide compliance pathways that fully anonymous coins can't.
Country Differences
- • United States: Legal. Some exchange restrictions. Standard capital gains tax.
- • Canada: Legal. Capital gains tax. Decreasing exchange availability.
- • European Union: Generally legal. MiCA may change things.
- • Japan & South Korea: Delisted from major exchanges.
- • Australia: Legal. Varying availability. Capital gains tax.
Rules keep evolving. Check local regulations before buying.
Compliance Features
Viewing keys let you prove history to auditors without exposing spending keys. Privacy + accountability. Sets Zcash apart from anonymous-only coins.
FAQs About Zcash (ZEC)
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