About
Zcash is a privacy-focused decentralized cryptocurrency designed to enable both transparent and shielded transactions using advanced cryptographic proofs. It was created to address privacy limitations inherent to early cryptocurrencies like Bitcoin by allowing users to choose whether transaction details including sender, receiver, and amount are public or private. Shielded transactions use zero-knowledge proofs (zk-SNARKs), which mathematically verify a transaction without revealing sensitive information on the blockchain, while transparent transactions behave similarly to Bitcoin with publicly visible data. This selective privacy model gives users flexibility, combining confidentiality with the option for regulatory or audit disclosure if needed.
Zcash was developed as a fork of the Bitcoin codebase but diverges with its optional privacy technology and configurable address types (transparent “t-addrs” and shielded “z-addrs” or unified addresses). It operates its own native blockchain and has undergone continuous upgrades such as the Orchard shielded pool improvements to enhance privacy, efficiency, and usability. Zcash also incorporates a governance and funding model where a portion of block rewards historically supported ecosystem development through entities like the Electric Coin Company (ECC), the Zcash Foundation, and community grants.
Because Zcash supports both privacy-enhanced and traditional transactions, it is used as both a means of confidential peer-to-peer digital payments and a store of value with optional disclosure capabilities, appealing to users seeking financial privacy while retaining compliance potential.
