What is Zcash?

Zcash (ZEC) is a decentralized cryptocurrency that places a strong emphasis on privacy and anonymity. Unlike many other cryptocurrencies, Zcash transactions do not by default reveal the sending and receiving addresses or the amount being transferred. This is achieved through the use of zk-SNARK zero-knowledge proof technology, which allows nodes on the network to verify transactions without revealing any sensitive information about those transactions.

How does Zcash work?

Zcash operates on a public blockchain, but it distinguishes itself from other cryptocurrencies through its optional anonymity feature. Zcash transactions can be sent in two ways: transparent and shielded. Transparent transactions are similar to Bitcoin transactions, with all essential information about the transaction available online for anyone to see. Shielded transactions, on the other hand, leverage zk-SNARKs technology to enable completely anonymous transactions over a public blockchain. The fact that the transaction has occurred is recorded on the ledger, but the sending and receiving addresses and the amount sent are not revealed to the public.

What are the potential use cases for Zcash?

Zcash strives to offer its users the right to privacy while still enjoying the benefits of a decentralized, permissionless digital currency. This makes it a potentially valuable tool for individuals and businesses that require transactional privacy for various reasons. For example, it could be used for remittances, online purchases, or any other transactions where the parties involved prefer to keep the details private. Additionally, Zcash provides an option to reveal transaction data for auditing or regulatory compliance, making it a versatile tool that can adapt to different user needs.

What is the history of Zcash?

Zcash was founded in 2016 by Zooko Wilcox-O'Hearn, a cypherpunk, computer security expert, and entrepreneur. He is also the founder of the for-profit Electronic Coin Company (ECC), which manages the development of Zcash. Wilcox-O’Hearn has contributed to numerous projects in the field of cryptography and information security over his 25-year career. Since its launch, Zcash has attracted attention and has become a high-ranking cryptocurrency.