The crypto sphere is constantly developing, and the number of bloggers and influencers within it is growing day by day.
09.01.2023
When Bitcoin first emerged, many early adopters assumed that it offered complete anonymity. For a while, this belief went largely unchallenged — until blockchain analysis tools began to show that Bitcoin’s transaction history could be traced, wallet by wallet, back to identifiable individuals. Bitcoin, it turned out, was pseudonymous, not truly anonymous.
This realization set off a race among cryptographers and blockchain developers to create digital currencies that could deliver genuine financial privacy. Over time, several privacy-oriented cryptocurrencies appeared, each with their own approach to anonymity. Among the best known of these is Zcash (ZEC), which has consistently been grouped with Monero (XMR) and Dash (DASH) as one of the top privacy coins.
Zcash was born out of a desire to provide strong, mathematically proven privacy without sacrificing the benefits of blockchain technology. It’s based on Bitcoin’s open-source code, but with significant modifications — most notably, the use of zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge), an advanced cryptographic method that allows transactions to be verified without revealing any sensitive details.
What makes Zcash unique
Unlike Bitcoin, where all transactions are publicly visible, Zcash allows users to choose between:
- Transparent transactions: Similar to Bitcoin, with all details visible on the blockchain.
- Shielded transactions: Sender, recipient, and amount are hidden, while still proving validity to the network.
This flexibility means that Zcash can operate both as a fully transparent cryptocurrency and as a privacy-focused one — depending on the user’s needs. For example, a business could use transparent transactions for public accountability, while an individual could opt for shielded transactions to keep personal financial activity confidential.
Zcash also benefits from a faster and more efficient transaction process than Bitcoin, due to optimizations in its codebase. It’s compatible with decentralized finance (DeFi) concepts, meaning it can be integrated into lending, borrowing, and trading platforms that value user privacy.
A brief history of Zcash
The concept behind Zcash began in 2013 at Johns Hopkins University, when cryptography professor Matthew Green and his graduate students developed a proposal called “Zerocash.” The idea was to create a privacy layer for Bitcoin that would hide transaction details while keeping the blockchain secure and verifiable.
Bitcoin’s developers didn’t adopt the idea, so the team decided to launch a separate cryptocurrency. They founded the Zcash Company and brought on Zooko Wilcox-O’Hearn as CEO. The project attracted over $3 million in venture capital funding and built a development team around the new protocol.
Edward Snowden, the former NSA whistleblower, later revealed that he was one of six individuals involved in creating the first public Zcash address in a secure multi-party ceremony before the network’s launch. This “trusted setup” process was designed to ensure no single participant could compromise the network’s cryptography.
Zcash officially launched on October 28, 2016. In later years, the Zcash Company rebranded as the Electric Coin Company (ECC), and governance was split between ECC and the non-profit Zcash Foundation to balance corporate development with community-driven decision-making.
Technical features
At the heart of Zcash is the zk-SNARK protocol, which enables zero-knowledge proofs. When you create a Zcash wallet, you receive two keys:
- Public key: For receiving funds and verifying transactions.
- Private key: For authorizing and sending funds.
All transactions — shielded or transparent—are recorded on the blockchain, so anyone can verify that they occurred. However, for shielded transactions, the transaction details remain hidden from public view.
Other key points:
- Mining Algorithm: Zcash uses Equihash, which is ASIC-resistant and better suited for GPU mining than Bitcoin’s SHA-256.
- Block Time: About 1.25 minutes, compared to Bitcoin’s 10.
- Block Reward (as of early 2023): 2.5 ZEC per block.
- Supply Cap: 21 million coins, matching Bitcoin’s fixed supply.
Challenges and criticism
The very feature that defines Zcash — complete anonymity — has been a point of contention. Regulators in many countries see fully private cryptocurrencies as potential tools for money laundering, tax evasion, and other illicit activity. This has led to increasing scrutiny and, in some cases, delistings from major exchanges.
From a technical perspective, some blockchain experts have raised concerns about the possibility of creating counterfeit ZEC through flaws in the zero-knowledge proof system. While there is no public evidence such an exploit has occurred, the theoretical risk is part of ongoing research and debate.
Mining Zcash
Mining Zcash remains accessible to individuals thanks to Equihash’s ASIC resistance, which favors GPUs. This design was intended to prevent industrial-scale mining farms from dominating the network. Like Bitcoin, Zcash’s fixed supply means mining rewards will decrease over time, eventually reaching zero.
Buying and trading ZEC
Zcash has historically been available on most major exchanges — Binance, Kraken, Coinbase, Huobi, and others. It can be purchased with fiat currency or traded for other cryptocurrencies. However, since 2023, regulatory changes have led to partial restrictions in certain jurisdictions. Some exchanges now disable shielded withdrawals, and a few have delisted ZEC entirely in compliance with local laws.
The 2025 landscape
As of mid-2025, Zcash’s position in the crypto market has shifted:
- Price: Generally trading between $20–$40 over the past year, far below its 2021 highs.
- Market Cap: Around $500–600 million, now outside the top 100 cryptocurrencies.
- Circulating Supply: Just under 17 million ZEC.
While the user base remains loyal, Zcash has faced competition from both established privacy coins like Monero and emerging privacy layers built into Ethereum and other blockchains.
Recent developments
- Proof-of-Stake Transition
The ECC and Zcash Foundation are actively working on migrating the network from Proof-of-Work to Proof-of-Stake (PoS). This shift aims to improve scalability, reduce energy consumption, and enable shielded staking, allowing users to earn rewards without revealing wallet balances. Although originally targeted for 2024, the transition is now expected in late 2025 or early 2026. - Wallet Upgrades
Zcash wallets have become significantly more user-friendly, with mobile apps supporting shielded transactions, faster sync times, and integration into multi-chain wallets like Edge and Nighthawk. - Regulatory Pressure
Privacy coins remain under heavy scrutiny. While some exchanges have dropped ZEC, its optional transparency has helped it maintain listings in more markets than Monero. Nevertheless, liquidity is lower than in previous years. - Selective Disclosure Features
New tools allow users to prove parts of a transaction (such as the amount) without revealing the entire record—useful for audits, compliance, or institutional usage without sacrificing overall privacy.
Outlook
Zcash’s future depends on two main factors:
- Regulatory environment: If privacy coins are banned from major markets, ZEC could be forced into niche use cases, limiting growth.
- Technical delivery: A smooth PoS (Proof-of-Stake) transition and new privacy tools could revitalize interest and adoption.
In the bullish case, ZEC could regain value if it becomes the go-to choice for lawful, compliant privacy in blockchain transactions. In the bearish case, continued restrictions and competition from integrated privacy solutions in mainstream blockchains could see it remain a specialized, low-volume asset.Final thoughts
Zcash remains one of the most technically advanced privacy coins, with a history rooted in academic research and cryptographic innovation. It’s no longer the breakout star it was in 2016–2018, but it continues to evolve, balancing privacy with usability and regulatory realities. In 2025, ZEC is best seen as a resilient niche player—still relevant, still innovating, and still fighting for the idea that financial privacy is a right, not a privilege.
