Zcash
Zcash (ZEC) is an open-source cryptocurrency with its own blockchain and support for both transparent and shielded transactions. Its shielded protocols validate transfers with zero-knowledge proofs while concealing transaction details. Transparent transactions remain publicly visible, so confidentiality depends on the transaction type rather than applying to every Zcash payment.[1][2]
Zcash's monetary rules set a maximum supply of 21 million ZEC. The network uses proof of work, with a target block interval of 75 seconds under the mainnet rules in effect when this article was checked on 19 October 2026.[3][4][5]
History
Zcash grew out of the 2014 Zerocash research project and was developed into a working cryptocurrency by the company now known as Electric Coin Co., with involvement from Zooko Wilcox.[6] Its blockchain launched on 28 October 2016. It drew on Bitcoin's code while operating as a separate network and currency.[7][8][5]
The network has introduced successive shielded protocols through consensus upgrades. Sapling activated on 29 October 2018. NU5 activated on 31 May 2022 and introduced Orchard, whose Halo 2 proving system removed the trusted-setup requirement used by earlier shielded protocols.[9][10][2]
Ironwood, or NU6.3, activated on 28 July 2026 at mainnet block 3,428,143. It introduced a new shielded pool and restricted the original Orchard pool: new value cannot enter Orchard, while value can leave it, including through the accounting boundary into Ironwood. The upgrade followed the discovery and remediation of an Orchard soundness vulnerability. It should not be interpreted as proof that historical counterfeiting was impossible.[11][12][13]
Transactions and privacy
Transparent transfers expose transaction information on the public blockchain. Shielded transfers instead use cryptographic commitments and zero-knowledge proofs to allow validation without publicly revealing the corresponding shielded payment details. Different shielded pools have separate accounting and anonymity sets. Moving value across a pool boundary can reveal the amount transferred even when the participating shielded addresses remain concealed.[1][2][14]
Addresses, viewing keys and spending keys serve different purposes. A payment address provides information needed to receive funds; a viewing key can reveal payment information, while spending authority is controlled separately. Publishing a transparent transaction does not require disclosing a spending key. Unified Addresses combine receivers for different transfer protocols in one address, allowing compatible software to select a supported receiver; an address alone does not establish that every wallet implements every protocol.[15][2]
Zcash's privacy features do not make all activity anonymous. Transparent transfers and amounts crossing shielded-pool boundaries remain observable, and the software and network connection used to broadcast a payment also affect what third parties can learn. Zodl's migration documentation, for example, distinguishes blockchain privacy from the exposure of a user's IP address to a remote server.[1][14]
Nodes and wallets
A full node checks the blockchain's consensus rules; a wallet manages the information needed to receive and spend funds. These roles need not be implemented by the same program. The original zcashd software included both, but reached end of support in July 2026 and does not support NU6.3. Zebra, maintained by the Zcash Foundation, and Zakura, derived from Zebra, are separate full-node implementations with NU6.3 support.[16][17]
Wallet compatibility must distinguish transparent transfers, shielded protocols and migration of older balances. As checked on 19 October 2026:
- Zodl, formerly Zashi, documents Ironwood-compatible mobile releases and tools for moving Orchard balances into Ironwood. Those transfers can disclose the amount crossing the pool boundary; the wallet provides different migration options rather than eliminating that disclosure.[18][14]
- Zallet is an RPC wallet being developed as a replacement for the wallet embedded in zcashd. Its repository identifies it as beta software, warns that it has not been fully reviewed, and notes that some RPC methods remain unimplemented. It should not be described as a finished, interchangeable replacement for every zcashd use.[19]
- The YWallet repository states that it no longer supports Zcash following Ironwood. Older lists that describe it simply as a current Zcash wallet therefore require qualification.[20]
Mining and development funding
Zcash issues new currency through block subsidies. Under the original Founders' Reward, 20% of the subsidy before the first halving was allocated to designated recipients. The Founders' Reward ended at the first halving; it is distinct from the later development-funding arrangements.[4][21]
At Canopy in 2020, the development fund allocated 7% of the block subsidy to the Bootstrap/Electric Coin Company stream, 5% to the Zcash Foundation and 8% to Major Grants. NU6 replaced those streams at the second halving in 2024 with 8% for Zcash Community Grants and 12% directed to a deferred development-fund lockbox.[21]
NU6.1 activated on 24 November 2025 at block 3,146,400. It introduced the Community and Coinholder Funding Model: 8% of the subsidy continues to fund Zcash Community Grants, while 12% goes to the Coinholder-Controlled Fund, leaving 80% for miners. ZIP 271 specifies a one-time transfer of the existing lockbox balance to a 2-of-3 multisignature arrangement involving the Zcash Foundation, Electric Coin Company and Shielded Labs. This supersedes descriptions that treat the original lockbox as still awaiting its first disbursement mechanism.[22][23][24][25]
The current streams are defined through the third halving. Their pre-NU7 mainnet end height is 4,406,400, exclusive. Draft changes associated with NU7 would adjust the relevant heights for shorter blocks while preserving the intended halving boundary. The deployed funding arrangements and those proposed changes should not be conflated.[21][26]
Proposed NU7 upgrade
As checked on 19 October 2026, ZIP 259 remained a draft and listed the NU7 mainnet activation height as undetermined. Its proposed changes include reducing target block spacing from 75 to 25 seconds, introducing shielded-action limits and a Network Sustainability Mechanism, and removing 60% of transaction fees from circulation. These are proposed mainnet changes, not a description of rules already active on mainnet.[26]
The August–September 2026 coinholder and community polls informed the proposed scope, including the debate over faster blocks and issuance. Polling was a governance consultation rather than consensus activation. ZIP 259 distinguishes testnet parameters from a mainnet activation decision; a testnet height does not establish mainnet deployment.[26]
Exchange-traded products
Grayscale's Zcash investment vehicle and the later Winklevoss proposal are separate products. Grayscale's former Zcash trust was renamed The Zcash ETF in August 2026, with NYSE Arca certifying its listing and registration on 24 August. The issuer lists 25 August 2026 as the exchange-traded product's listing date and ZCSH as its ticker.[5][27][28]
On 6 October 2026, the Winklevoss Zcash ETF filed an initial Form S-1 registration statement. Its preliminary prospectus described a vehicle intended to hold ZEC and proposed trading on Nasdaq under WINK. The document was marked subject to completion and stated that securities could not be sold until the registration statement became effective. The filing was an application, not an SEC approval or evidence that trading in that proposed product had begun.[29][30]
See also
References
- ↑ 1.0 1.1 1.2 Z.cash, What is the difference between shielded and transparent Zcash?
- ↑ 2.0 2.1 2.2 2.3 ZIP 224: Orchard Shielded Protocol.
- ↑ Z.cash, What are the economics of Zcash?
- ↑ 4.0 4.1 ZIP 208: Shorter Block Target Spacing.
- ↑ 5.0 5.1 5.2 The Zcash ETF, Form 424B3 prospectus, August 2026, filed with the SEC.
- ↑ Eli Ben-Sasson and co-authors, Zerocash: Decentralized Anonymous Payments from Bitcoin, 2014.
- ↑ Z.cash, Who created Zcash?
- ↑ Electric Coin Company, Zcash begins, 28 October 2016; retained on the Zodl website.
- ↑ Z.cash, Sapling, historical upgrade record.
- ↑ Z.cash, Network Upgrade 5, historical upgrade record.
- ↑ Z.cash, Network Upgrade 6.3.
- ↑ ZIP 258: Deployment of the NU6.3 Network Upgrade.
- ↑ Shaurya Malwa, Zcash seals $1.7 billion shielded pool as Ironwood upgrade activates, CoinDesk, 28 July 2026.
- ↑ 14.0 14.1 14.2 Zodl Support, Ironwood: steps for Zodl users, updated 7 August 2026.
- ↑ ZIP 316: Unified Addresses and Unified Viewing Keys.
- ↑ Z.cash, Zcashd Deprecation.
- ↑ Zcash Foundation, Zebra, Zakura, and the road through NU6.3, 16 July 2026.
- ↑ Z.cash, Discover the Zcash Ecosystem, Zodl entry.
- ↑ Zcash, Zallet, repository README and security warnings, checked 19 October 2026.
- ↑ YWallet repository README, Ironwood support notice, checked 19 October 2026.
- ↑ 21.0 21.1 21.2 ZIP 214: Consensus rules for a Zcash Development Fund, revisions 0–3.
- ↑ ZIP 255: Deployment of the NU6.1 Network Upgrade, final.
- ↑ Z.cash, Network Upgrade 6.1, activation and funding model.
- ↑ ZIP 1016: Community and Coinholder Funding Model.
- ↑ ZIP 271: Dev Fund Extension and One-Time Disbursement.
- ↑ 26.0 26.1 26.2 ZIP 259: Deployment of the NU7 Network Upgrade, draft, checked 19 October 2026.
- ↑ NYSE Arca, listing and registration certification, 24 August 2026, filed with the SEC.
- ↑ The Zcash ETF, issuer product page, listing information.
- ↑ SEC EDGAR, Winklevoss Zcash ETF, Form S-1 filing index, 6 October 2026.
- ↑ Winklevoss Zcash ETF, preliminary Form S-1 prospectus, 6 October 2026.