Zcash: A privacy-focused cryptocurrency using zero-knowledge proofs

Zcash (ZEC) is a decentralized cryptocurrency launched in 2016 that focuses on providing financial privacy through advanced cryptographic technology. While its code structure is derived from Bitcoin, Zcash distinguishes itself by allowing users to choose between transparent transactions and shielded transactions.

Shielded transactions utilize zero-knowledge proofs, specifically zk-SNARKs and the Halo 2 protocol, to allow users to prove a transaction is valid without revealing sensitive details such as the sender, receiver, or transaction amount on the public blockchain. This provides a level of confidentiality not found in Bitcoin’s transparent ledger.

The project originated from academic research into protocols like Zerocoin and Zerocash, involving researchers from institutions such as Johns Hopkins University and MIT. The development moved toward implementation with the formation of the Zerocoin Electric Coin Company, with Zooko Wilcox-O’Hearn serving as a central figure in its history.