What is Zcash (ZEC)?
Zcash is a digital currency that was launched in 2016. It focuses on providing enhanced privacy and security for transactions on a public blockchain. Zcash was created by a team of scientists for better anonymity and security. In its initial phase, the protocol Zerocoin was proposed, then Zerocash, and finally Zcash was finalized.
Zcash is designed for users to make payments privately or anonymously as desired. Unlike almost all other cryptos, Zcash provides individuals and institutions with the power over the confidentiality of their financial data.
Key information:
- Zcash token: ZEC
- Supply: 21 million (same as Bitcoin)
- Consensus: Proof-of-work (mining, Equihash algorithm)
- Privacy: Optional (shielded and transparent addresses)
Image Source: CoinGeko
ZEC’s price has seen steady consolidation over recent years, followed by a sharp rise in 2025, signaling renewed momentum and increasing attention toward privacy-driven digital assets like Zcash.
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Who Created Zcash?
A few scientists, led by Zooko Wilcox-O’Hearn, worked on this digital currency. Zcash began with a fork from Bitcoin, with the aim of incorporating more useful privacy into a blockchain model that is well-demonstrated, understood, and widely adopted. Initially, it was developed, with assistance from the Electric Coin Company ECC, and with contributions from cryptographers such as Matthew Green, Ian Miers, and others at Johns Hopkins University.
Earlier, Zcash was called the “ZeroCoin protocol,” proposed originally by a group of scientists at Johns Hopkins. When Zooko Wilcox & ECC launched Zcash in 2016 after an extensive amount of technological and security research, this vision became a historical fact.
Why was Zcash created?
There were three primary reasons:
- Make privacy practical and accessible on a public blockchain.
- Provide privacy without sacrificing validity verification.
- Provide for selective disclosure for compliance or audit purposes, as needed.
These features put Zcash as the leading privacy coin and the first working privacy coin to use zero-knowledge cryptography for a new use case in digital finance.
How Does Zcash Work?
The most important innovation in Zcash is its development of zero-knowledge proofs, specifically, zk-SNARKs. As the acronym suggests, zk-SNARKs allow someone to prove that a given transaction is valid, without revealing the sender, receiver, or amount being transferred, enabling the concept of private, “shielded” payments on a decentralized blockchain.
Zcash addresses are either “t” for transparent, much like any Bitcoin address, or they are “z” for shielded, utilizing the protocol for private transactions.
Features:
- Choice of Privacy: Privacy by choice allows users to send ZEC either transparently (fully public) or in a private manner. Private transactions obscure addresses and transaction amounts from everyone except the parties involved.
- Selective Disclosure: One can share a “view key” to enable audit access for regulatory or compliance purposes.
- Mining & Supply: Zcash is mined using the Equihash proof-of-work algorithm. The supply is capped at 21 million, with halvings built into the protocol.
Recent Advances:
- Halo 2: Improved zero-knowledge proving to achieve better scalability and security, eliminating concerns about “trusted setup”.
- Zashi Wallet is a new wallet that defaults to shielded, private transactions for all users.
Why does Zcash matter?
Financial Privacy: In a world of increased data surveillance, Zcash’s privacy technology gives users superior control over sensitive information.
Flexibility: Users can opt for privacy when the need arises, or they may opt for transparency, a fine balance for individual and institutional needs.
Regulatory Fit: With the ability to share view keys or audit reports, entities can meet compliance requirements without compromising the baseline level of privacy.
Goals of ZCash
ZCash aimed to provide users with fast, private, and secure transactions on its decentralized blockchain. It provides fast, low-cost transactions suitable for both peer-to-peer payments and enterprise use. Using state-of-the-art cryptography, called zk-SNARKs, makes all transactions valid without leaking any confidential details.
Zcash vs Bitcoin
| Feature | Bitcoin | Zcash (ZEC) |
| Supply Cap | 21 million coins | 21 million coins |
| Algorithm | SHA-256 PoW | Equihash PoW |
| Public Ledger | Yes (default, all TX visible) | Yes, but optional privacy |
| Privacy Option | No, all TX visible | Yes: shielded transactions (zk-SNARKs) |
| Selective Audit | No | Yes (view keys) |
| Transaction Speed | Moderate | Fast, scalable |
| Open Source | Yes | Yes |
| Use Case | Transparent payments, store of value | Privacy payments, compliance, anonymous commerce |
Conclusion
Zcash stands out as a digital asset that enables optional privacy, strong cryptographic security, and a unique approach to compliant financial confidentiality. With development led by some of the most respected cryptographers in blockchain, Zcash remains a model project for leveraging zero-knowledge proofs in practical finance.
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FAQs
1. What is Zcash, and how is it different from Bitcoin?
Zcash is a privacy-focused digital currency based on Bitcoin’s code but with advanced cryptography (zk-SNARKs) that allows users to choose between transparent (public) and shielded (private) transactions, providing stronger anonymity than Bitcoin’s default transparent ledger.
2. Who created Zcash?
Zcash was developed by Zooko Wilcox-O’Hearn and launched by the Electric Coin Company in 2016. The zero-knowledge protocol originated from research at Johns Hopkins University, with key cryptographers such as Matthew Green and Ian Miers contributing. Edward Snowden was also revealed to have participated pseudonymously in its initial setup.
3. What are zk-SNARKs and why are they important to Zcash?
zk-SNARKs (zero-knowledge succinct non-interactive arguments of knowledge) are cryptographic tools that validate transaction details without publicly revealing them. In Zcash, zk-SNARKs make shielded, private payments possible while still allowing transaction verification for the network.
4. How many Zcash coins are there in circulation?
Zcash has a capped supply of 21 million coins. As of October 2025, about 16.3 million ZEC are circulating, with new coins minted as block rewards through mining, which decrease via scheduled halving events.
