Zcash
Crypto Overview
Understanding Intended Utility
Zcash is a privacy-focused cryptocurrency that aims to provide enhanced transaction privacy through zero-knowledge cryptography. Created as a fork of Bitcoin in 2016, it allows users to shield transaction details while maintaining the ability to selectively disclose information for auditing or compliance purposes.
Business Model & Actual Usage
The project operates through the Electric Coin Company (ECC) and the Zcash Foundation, with a focus on developing and maintaining privacy-preserving technology. The primary utility is as a medium of exchange with optional privacy features, allowing both transparent and shielded transactions.
Currently, Zcash is actively used for private financial transactions, with growing adoption in regions where financial privacy is valued. The network processes thousands of daily transactions, with approximately 10-15% being fully shielded.
Development Activity
Zcash maintains strong development activity with regular protocol upgrades. The latest major upgrade, Network Upgrade 5 (NU5), implemented significant improvements to the protocol's efficiency and privacy features. The development team continues to work on scalability solutions and user experience improvements.
Token Distribution & Governance
Zcash has a fixed supply of 21 million coins, similar to Bitcoin. The funding mechanism allocates 20% of all newly mined ZEC to stakeholders including the Electric Coin Company, Zcash Foundation, and major grants, with the remaining 80% going to miners. The funding structure is transparent and well-documented.
Technology Assessment
The underlying zero-knowledge proof technology is mathematically sound and doesn't rely on interest-bearing mechanisms or gambling elements. The privacy features serve legitimate purposes like protecting business transactions and personal financial privacy, which align with Islamic principles of protecting wealth and maintaining dignity.
Crypto Impact
To assign a comfort level investing in Zcash from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Zcash.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.