Zcash (ZEC)

Zcash is a privacy-focused cryptocurrency that was launched in 2016. It was developed by a team of cryptographers and computer scientists who wanted to create a digital currency with enhanced privacy features.

Zcash offers users the option of 'shielded' transactions, which hide the sender, recipient, and transaction amount using a cryptographic tool called zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge).

Unlike some privacy coins, Zcash gives users a choice: they can make transparent transactions (similar to Bitcoin) or shielded transactions (fully private). This flexibility allows compliance with regulations while still offering privacy when needed.

Zcash shares many technical similarities with Bitcoin, including a maximum supply of 21 million coins and a proof-of-work consensus mechanism, but with added privacy technology.

Zcash uses zk-SNARKs, a form of zero-knowledge proof that allows one party to prove to another that a statement is true without revealing any additional information. This enables transaction validation without exposing transaction details.

Users can choose between transparent addresses (t-addresses) that work like Bitcoin addresses, and shielded addresses (z-addresses) that provide full privacy protection.

When sending to a shielded address, the transaction details are encrypted on the blockchain. Validators can still verify that the transaction is valid without seeing the amounts or addresses involved.

Zcash mining uses the Equihash algorithm, which is memory-intensive and was designed to be ASIC-resistant (though ASICs have since been developed for it).