What is Zcash? Learn what Zcash is in one minute

Zcash's shielded transactions utilize zk-SNARKs to conceal transaction amounts and recipient addresses, providing enhanced privacy compared to many other cryptocurrencies.

Sep 30, 2024 at 12:00 pm

What is Zcash?

1. Definition:

Zcash is a decentralized cryptocurrency that prioritizes privacy and anonymity.

2. Technology:

• Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARK): Allows users to prove statements (e.g., balance) without revealing the underlying information.
• Shielded Transactions: Senders and receivers can optionally encrypt transaction details using zk-SNARKs, hiding amounts and addresses.

3. Key Features:

• Enhanced Privacy: Shielded transactions provide a higher level of privacy than Bitcoin or Ethereum transactions.
• Selective Disclosure: Users can choose which transactions to shield, allowing for both privacy and transparency.
• High Security: zk-SNARKs are computationally secure, ensuring the correctness of private transactions.

4. Applications:

• Confidential Payments: Conducting financial transactions without revealing the identities or amounts involved.
• Improved Supply Chain Management: Tracking goods and materials while protecting sensitive information.
• Enhanced Voting Systems: Enabling secure and anonymous voting processes.

5. Note:

• Zcash was launched in 2016 by the Zerocoin Electric Coin Company (ZECC).
• The ZEC token is used for payments and mining on the Zcash network.
• Zcash is currently ranked 28th by market capitalization among cryptocurrencies.