Zcash (ZEC) is a privacy-focused cryptocurrency that has gained significant attention in 2026 due to a sharp rally in its market value. Launched in 2016, Zcash allows users to conduct both public and private transactions, with the latter being known as shielded transactions. These transactions use zero-knowledge proofs called zk-SNARKs to verify payments without revealing the sender, recipient, or amount.
The network was originally derived from Bitcoin’s codebase and retains similarities such as proof-of-work mining and a fixed supply of 21 million coins. However, Zcash differentiates itself through its privacy features, offering transparent transactions similar to Bitcoin and shielded transactions that conceal financial details using advanced cryptography.
Shielded transactions on Zcash operate through two parallel accounting environments: the transparent ledger and shielded pools. As of October 2026, approximately 29% of the issued ZEC supply was held in shielded pools. These pools allow funds to be held and transferred privately, with transaction details recorded on the blockchain but kept concealed from public view.
Zcash’s privacy technology has evolved significantly since its launch, with upgrades like Orchard in 2022 introducing an improved shielded pool and the Halo 2 proving system. This system eliminated the need for a trusted setup, enhancing the network’s security and functionality.