What is Zcash?

Zcash is a privacy-focused cryptocurrency that employs zero-knowledge proofs to facilitate encrypted transactions while maintaining blockchain transparency. It was launched in 2013 by a group of scientists who initially proposed Zerocoin as a privacy extension to Bitcoin, later developing it into a standalone protocol. Zcash has a fixed supply of 21 million ZEC and utilizes a Proof-of-Work consensus algorithm, with plans for a transition to Proof-of-Stake through an upgrade called "Crosslink."

Users can conduct either transparent or shielded transactions through Unified Addresses. The network allows for the validation of transactions without disclosing sensitive details such as wallet balances or identities. Zcash features a self-funded development model, where block rewards support development efforts via the Zcash Community Grants Committee and a Coinholder-Controlled Fund. Transaction fees are typically low, and blocks are mined approximately every 75 seconds.