ZEC is a privacy-focused cryptocurrency that launched in October 2016, serving as the native token for the Zcash network. It emphasizes selective privacy transactions, relying on zk-SNARKs zero-knowledge proof technology, making it a benchmark project in the privacy coin sector. Its total supply is capped at 21 million, the same as Bitcoin, and it utilizes a PoW consensus mechanism, with block rewards halving every four years.
1. Core Technology and Address Model
• Core: zk-SNARKs enable transactions to be validated without revealing the sender, receiver, or amount, offering native-level privacy protection without plugin mixing.
• Address: Transparent addresses (starting with t, similar to Bitcoin, publicly traceable) and shielded addresses (starting with z, transaction information is encrypted, only authorized parties can view the unlocking keys), balancing privacy and compliance.
• Upgrade: The Halo2 upgrade in 2025 will eliminate the reliance on "trusted setup," and the Orchard protocol will enhance the efficiency and scalability of privacy transactions.
2. Token Economics and Uses
• Issuance: A total supply of 21 million, produced through PoW mining, with the second halving expected in 2024 and the third halving in November 2025, reducing the block reward to 0.78125 ZEC; early mining rewards of 20% are allocated for ecosystem development, now primarily governed by the community.
• Uses: To pay network transaction fees, reward miners for maintaining security; supports private/transparent transfers, cross-border payments, and value storage; view keys are adaptable for audit compliance scenarios.
3. Ecosystem and Governance
• Ecosystem: The core team, Electric Coin Company (ECC), collaborates with the Zcash Foundation for governance; the Zashi light wallet lowers the threshold for privacy transactions, and cross-chain integration expands application scenarios.
• Data (as of December 24, 2025): Price approximately $450, market cap consistently ranks high among privacy coins, with the proportion of ZEC in shielded addresses continuously increasing.
4. Highlights and Risks
• Highlights: Leading zk-SNARKs technology, privacy options adaptable to regulation; scarcity comparable to Bitcoin, increasing privacy demand driving value appreciation.
• Risks: Stringent regulations on privacy coins; risks of centralized PoW hash power; intense industry competition necessitates continuous technological iteration to maintain advantage.
ZEC can be traded on mainstream exchanges such as Binance and Coinbase, representing a balance between privacy and compliance, making it suitable for users and investors who prioritize financial privacy.
