What Is Zcash (ZEC): Privacy Through zk-SNARK Encryption

Privacy coins use cryptographic proofs to shield users' identities on the blockchain. Zcash is one of the leading digital currencies in this niche. In this article we’ll learn more about its history, its protocol, and how it’s evolving to compete with other technologies in its category. As global demand for privacy coins increases, regulators are taking note. Each currency’s approach to decentralization will influence its future viability. Effective marketing and technological adaptation may predispose Zcash to thrive.

What Is Zcash?

Zcash (ZEC) is a Bitcoin-based privacy coin that utilizes zero-knowledge encryption to shield, verify and validate transactions on its public blockchain.

In 2013, a team of seven research scientists conceptualized Zcash crypto as a privacy extension to Bitcoin. In 2015, they collaborated with computer security specialist Zooko Wilcox to create the Zerocoin Electric Coin Company (ZECC). The company then raised $3 million in venture capital to further develop the Zcash operational protocol and its zero-knowledge succinct non-interactive argument of knowledge (zk-SNARK) cryptographic proof. 

Following its release on October 28, 2016, the protocol underwent successive upgrades, known as the Zcash Sprout series. Two major core upgrades arrived in 2018: Overwinter coincided with the protocol's first hard fork on June 26, 2016. Sapling, released on October 29, 2016, included a network migration. Funds associated with Sprout addresses were transitioned to new Sapling accounts that used a more secure type of shielded address. Subsequent major upgrades iteratively increased performance, speed and functionality. Meanwhile, in May 2017, Zcash partnered with JPMorgan Chase to add a zero-knowledge security layer to Quorum, formerly the bank’s own Ethereum-based blockchain.