Zcash (ZEC) price today

What is Zcash?

Zcash launched on October 28, 2016 from Bitcoin's codebase, with the same maximum supply of 21 million units and a similar halving schedule.

The difference is privacy. The project was the first to apply at scale the zero-knowledge proofs known as zk-SNARKs, which make it possible to validate a transaction without revealing its data.

How Zcash works

The network has two address types. Transparent addresses work like Bitcoin, with public data. Shielded addresses encrypt sender, recipient and amount, and the network verifies only a mathematical proof that the transaction is valid.

Blocks are validated by mining with the Equihash algorithm. Users can share viewing keys to prove specific transactions to third parties, such as an auditor.

What ZEC is used for

• Payments and transfers with optional privacy.
• Store of value with supply capped at 21 million units.
• Selective disclosure of transactions through viewing keys.

Risks and points of attention

• Regulatory risk: privacy coins have been delisted from exchanges in some countries, which reduces liquidity and access.
• Not every transaction is private: operations with transparent addresses are public, and mixing the two types can expose information.
• High volatility and lower liquidity than the largest cryptocurrencies.
• Compatibility: not every wallet or exchange supports shielded addresses.