Zcash

Purpose and Utility

Zcash is a privacy-focused cryptocurrency that launched in 2016. It uses advanced cryptography called zk-SNARKs to enable optional private transactions that shield the sender, recipient, and amount. The core purpose is to serve as a medium of exchange with enhanced privacy features while maintaining the ability to selectively disclose transaction details for compliance.

Business Model and Technology

Zcash operates as a decentralized payment network, with no lending or interest-bearing components. The protocol generates revenue through mining rewards that secure the network. The Electric Coin Company (ECC) maintains the core protocol and receives funding through a portion of mining rewards.

Real-World Adoption

Zcash has achieved notable adoption among privacy-conscious users and is listed on major exchanges. While transaction volumes are lower than Bitcoin, the network processes thousands of daily transactions. Several wallet providers and payment processors support ZEC, including Gemini and Flexa.

Development Activity

The project maintains active development with regular updates. Recent developments include the transition to Proof of Stake, enhanced mobile wallet support, and cross-chain interoperability features. The GitHub repository shows consistent commits and multiple contributors.

Token Distribution

20% of mining rewards are allocated to stakeholders: 8% to the Electric Coin Company, 7% to the Zcash Foundation, and 5% to grants. The remaining 80% goes to miners. There was no pre-mine or ICO, and founders' rewards ended in 2020.