What is Zcash?
Zcash (ZEC) is a cryptocurrency created in 2016 based on Bitcoin's code, but with a key difference: the ability to conduct fully confidential transactions. Users can choose whether to conduct transfers openly or in protected mode.
How it works
Confidentiality is provided by zero-knowledge proofs (zk-SNARKs): the network mathematically verifies transaction correctness without revealing its details. Emission, like Bitcoin, is limited to 21 million coins, with new ZEC released through mining with periodic halvings.
Advantages and disadvantages
- Advantages: strong cryptographic privacy protection, limited emission, flexible transaction mode selection.
- Disadvantages: increased regulatory attention to privacy coins, risk of delisting from certain exchanges, high volatility.