What is Zcash?

Zcash is a privacy-focused cryptocurrency that utilizes zero-knowledge proofs to facilitate encrypted transactions while ensuring blockchain transparency. Launched in 2013 by a group of scientists, Zcash features a fixed supply of 21 million ZEC and implements a halving schedule similar to Bitcoin. The cryptocurrency allows users to validate transactions without disclosing sensitive information, making it applicable for various financial transactions that require confidentiality.

The protocol operates on its own blockchain using Proof-of-Work consensus, with plans to transition to Proof-of-Stake through a future upgrade. Users can opt for either transparent public transactions or shielded private transactions via Unified Addresses. Zcash employs trustless zero-knowledge proofs within its shielded pool to maintain transaction privacy. Development is funded through a self-sustaining model where block rewards support independent teams and community initiatives.