Zcash Token Utility: Beyond Privacy Coin Status
Zcash's native token, ZEC, is often misunderstood as just a 'privacy coin.' However, its purpose goes beyond that. The ZEC token allows users to decide how much of their transactions become public record.
The Zcash network was launched in October 2016 and has had privacy features built-in from the start. Unlike other cryptocurrencies, Zcash's protocol includes both transparent and shielded addresses. Transparent addresses work like Bitcoin, while shielded addresses use advanced cryptography to hide sender, receiver, and amount information.
The ZEC token serves multiple purposes. It covers transaction fees for both shielded and transparent transactions. It also acts as the base asset underneath privacy-focused applications. Furthermore, it gives developers a foundation to build private financial products on top of.