Zcash (ZEC)
Overview
Zcash (ZEC) is a cryptocurrency developed to enhance privacy in financial transactions. It uses the zk-SNARK security protocol to enable fully shielded transactions, ensuring the confidentiality of the sender, recipient, and transaction amounts. This approach aims to provide a higher level of privacy compared to traditional cryptocurrencies like Bitcoin, where transaction details are publicly visible on the blockchain.
History
Pre-launch
The origins of Zcash date back to 2014 with a group of researchers who sought to improve Bitcoin's privacy features. Their efforts led to the creation of Zerocash, which eventually evolved into Zcash.
| Ticker | ZEC |
| Category | Smart Contract Platform |
| Website | https://z.cash/ |
| @zcash | |
| Telegram | Zcash_Community |
| https://www.reddit.com/r/zec |
Launch
Zcash was officially launched on October 28, 2016, by the Electric Coin Company, initially known as The Zerocoin Company. This launch was supported by significant funding to develop its protocol.
2016 - 2018
Following its launch, Zcash underwent several upgrades, including the Sprout series, Overwinter, and Sapling, which enhanced the network's efficiency and introduced new features. The Zcash Foundation was established in 2017 to further support the cryptocurrency's development.
2019 - 2020
In 2019, the Electric Coin Company rebranded itself to distinguish from the Zcash protocol and foundation. The community engaged in discussions about governance and funding. Significant upgrades during this period included Blossom, Heartwood, and Canopy, each bringing new capabilities to the network.
2021 - 2022
The sixth major network upgrade, NU5, was implemented on May 31, 2022, enabling full support for the Orchard shielded protocol and Unified Addresses.
Key features
Addresses
Zcash features two types of addresses: private (z-addresses) and transparent (t-addresses). Users can choose between these addresses to manage their privacy preferences, with the ability to transfer funds between them.
Transactions
Zcash transactions vary depending on the address types involved. Transactions between transparent addresses are publicly visible, while those involving shielded addresses maintain privacy. The most secure type is the shielded (z-to-z) transaction.
Viewing keys
Zcash allows z-address owners to share transaction details with trusted third parties through viewing keys. This feature ensures that third parties can audit transactions without accessing funds, facilitating compliance with various regulations.
Operational components
Units and divisibility
Zcash's unit of account is ZEC, with the smallest divisible unit being a zatoshi, equivalent to 0.00000001 ZEC.
Mining
Mining Zcash initially involved CPUs and GPUs, but has since shifted to ASIC machines for better performance. Several notable mining pools participate in Zcash mining.
Scalability
Zcash addresses scalability through ongoing research and development. Techniques like Halo and sharding architecture are being explored to enhance the network's capacity to handle more transactions efficiently.
Zcash Improvement Proposals (ZIPs)
ZIPs are essential for proposing new features and fostering community discussions. They play a vital role in the ongoing evolution of the Zcash protocol.
Tokenomics
The native cryptocurrency of the Zcash network is the ZEC Token, with a capped supply of 21 million. Block rewards are distributed between miners and the development fund, with halving events scheduled every four years to manage inflation.