Zcash (ZEC) is a privacy-focused cryptocurrency that uses zero-knowledge proofs (specifically zk-SNARKs) to enable fully shielded transactions where the sender, receiver, and amount are all encrypted while still being verified by the network.
Privacy Options
Zcash offers two types of addresses:
Transparent (t-addresses): Work like Bitcoin โ transactions are publicly visible on the blockchain.
Shielded (z-addresses): Use zk-SNARKs to encrypt all transaction details. Only parties with the viewing key can see the contents.
zk-SNARKs
Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge allow one party to prove they possess certain information without revealing it. In Zcash, this means proving a transaction is valid without revealing any details about it.
History
Launched in October 2016, Zcash was developed by the Electric Coin Company. It pioneered the practical use of zero-knowledge proofs in cryptocurrency, and its research has influenced many subsequent privacy and scaling technologies, including Ethereum's zk-rollups.