What Is Zcash (ZEC)?
Zcash (ticker ZEC) is a cryptocurrency and its own blockchain, which according to The Block launched in 2016. It belongs to the group of so-called privacy coins, meaning cryptocurrencies focused on user privacy.
The key feature The Block highlights: Zcash supports two types of transactions. Either public (similar to Bitcoin, where addresses and amounts are visible on the blockchain), or private, referred to on the network as a "shielded transaction."
A privacy coin is a term for a cryptocurrency whose main selling point is hiding payment details. A blockchain is a shared database of transactions, maintained by a network of nodes without a central administrator.
How Do Shielded Transactions Work?
According to The Block, shielded transactions use so-called zero-knowledge proofs, specifically zk-SNARKs. This is a cryptographic method that lets the network verify that a transaction is valid without having to reveal who is paying whom and how much.
Put simply: a zero-knowledge proof is a way for one party to prove to another that a certain piece of information is true, without disclosing that information. In the case of Zcash, this means the network confirms the validity of the payment, but the sender, the recipient, and the amount are not publicly readable on the blockchain.
This differs from transparent chains like Bitcoin, where transaction addresses and values are traceable by anyone.
How Does Zcash Differ From Ordinary Cryptocurrencies?
| Feature | Zcash (per The Block) |
|---|---|
| Year of launch | 2016 |
| Transaction types | public and private (shielded) |
| Privacy technology | zk-SNARKs (zero-knowledge proofs) |
| What a shielded transaction hides | the sender, the recipient, and the amount |
The table summarizes only facts directly confirmed by our source. Other technical and economic parameters (for example token supply, protocol governance, or price development) are not in this material, and therefore we do not list them here.
What Is Still Unclear From the Available Source?
Let's be honest about the scope of what we have verified. The verified material from The Block describes what Zcash is and how shielded transactions work in principle. It does not, however, describe a number of things that might interest readers:
- the current volume of transactions that are actually shielded (vs. public) on the network,
- the regulatory stance of individual jurisdictions toward privacy coins,
- the availability of ZEC on specific European exchanges.
We deliberately do not address these points here, because our source does not cover them. We will add them once we have verified material.
What to Watch Out For With This Type of Technology?
This is not investment advice. If you are researching any privacy-focused technology, factual questions make sense: what share of transactions is actually shielded, how regulators in your country treat the given coin, and how the specific wallet or service you want to use works. charliedesk describes what happened and how things work technically; we leave the decisions to you.