zec

Zec, commonly referred to by its ticker ZEC, is the native cryptocurrency of the Zcash network. It is designed to provide strong privacy for users through optional shielded transactions that use zero-knowledge proofs, allowing participants to prove that a transaction is valid without revealing sender, recipient, or amount on the public blockchain. In addition to shielded transactions, Zcash also supports transparent addresses like many other cryptocurrencies.

The project originated in 2016 from the Zerocoin project and is closely associated with the Zerocoin Electric Coin Company, now known as the Electric Coin Company. Zcash builds on the Zerocash protocol and uses a proof-of-work consensus mechanism based on the Equihash algorithm. This design aims to combine the security properties of a public blockchain with the option for privacy-preserving transactions. Over time, Zcash has released several network upgrades to improve the usability and efficiency of shielded transactions, including major updates that introduced enhanced shielded addresses and improved performance.

Zcash distinguishes between two types of addresses: transparent addresses, which behave like standard public-address transactions, and shielded addresses, which leverage zk-SNARKs to conceal transaction details. The network allows selective disclosure, enabling users to provide auditors or regulators with proofs of compliance without exposing private information. Governance and development funding have included mechanisms such as a founders’ reward in the early years to support ongoing research and development; this mechanism has been wound down, with ongoing development supported by the company, grants, and community contributions.

Zcash has also fostered an ecosystem of wallets, exchanges, and researchers focused on advancing privacy-preserving cryptography and blockchain usability. See also: Zcash Foundation, Electric Coin Company.