Zcash
Crypto Overview
Understanding the Intended Utility
Zcash is a privacy-focused cryptocurrency launched in 2016 that uses advanced cryptographic techniques called zero-knowledge proofs to enable fully encrypted transactions. The project aims to provide users with enhanced financial privacy while maintaining compliance with regulatory requirements.
Business Model and Technology
Zcash operates on a dual transaction system: transparent transactions (t-addresses) similar to Bitcoin, and shielded transactions (z-addresses) that encrypt transaction details. The protocol employs zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) to validate transactions without revealing sensitive information.
Actual Utility Assessment
Current usage data shows that while Zcash maintains active development and regular protocol upgrades, shielded transaction adoption remains relatively low, with approximately 20% of transactions using privacy features as of 2023. The Electric Coin Company (ECC), which develops Zcash, has established partnerships with regulated entities and continues to enhance the protocol's privacy features while maintaining regulatory compliance.
Token Distribution and Governance
Zcash has a transparent tokenomics model with a fixed supply cap of 21 million ZEC. The founding reward was distributed among founders, employees, advisors, and investors with clear vesting schedules. Post-launch, mining rewards are split between miners (80%) and a development fund (20%) that supports protocol development and community initiatives.
Development Activity
The project maintains active development with regular updates and improvements. The development team has a strong track record of delivering protocol upgrades and maintaining transparency in their operations. The project's GitHub repositories show consistent activity and meaningful contributions.
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.