Zcash (ZEC)

The project emerged from academic work on Zerocoin, an early proposal to add stronger privacy to Bitcoin. Zcash launched as a separate network and retains several Bitcoin-like monetary features, including a capped supply of 21 million ZEC and periodic block reward halvings. Unlike Bitcoin, however, Zcash is built around optional privacy. Users can transact through transparent addresses, which behave similarly to public blockchain addresses, or shielded addresses, which protect transaction data.

ZEC is the native asset used to pay transaction fees, transfer value, and store wealth on the Zcash network. The protocol’s shielded pools are central to its privacy model, allowing coins to move in ways that are still auditable by consensus rules but not visible to casual observers. Modern Zcash privacy relies on advanced proving systems, including Halo-based technology, which removed the need for certain trusted setup assumptions in newer shielded components.

The network currently uses proof-of-work mining, though the Zcash community and development organizations have explored a transition toward proof-of-stake to improve scalability, security design, and energy efficiency. Zcash is widely watched by privacy advocates, exchanges, regulators, and developers because it sits at the intersection of financial confidentiality and public blockchain transparency.

Its main distinction is choice: Zcash does not make every transaction private by default, but it provides tools for users who need stronger confidentiality for payments, savings, and cross-border transfers.