ZEC

While both Zcash and Bitcoin are Proof of Work (PoW) cryptocurrencies, Zcash's fundamental difference lies in its robust privacy features. Zcash offers optional privacy through shielded transactions, using zero-knowledge proofs to hide transaction data, whereas Bitcoin's transactions are entirely transparent on the blockchain. Zcash is also noted for being faster than Bitcoin, with transaction fees typically a fraction of a cent, offering a more efficient and private alternative for digital payments.

Zcash uses zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge) to prove transaction validity without revealing sender, receiver, or amount. The Halo 2 system in NU5 eliminated the need for trusted setups, enhancing security. Shielded transactions are encrypted on-chain but verified through mathematical proofs under consensus rules, maintaining network integrity while preserving privacy.

Zcash employs a unique dual-key governance where the trademark is held by the non-profit Zcash Foundation and development is led by the for-profit Electric Coin Company. Network upgrades require mutual agreement, validated against community consensus measured through ZCAP polling. This prevents unilateral changes while allowing protocol evolution through transparent ZIP processes.

Yes, ZIP 233 introduces a voluntary removal mechanism allowing users to burn tokens, creating "headroom" in the monetary supply. This enables the Network Sustainability Mechanism where future issuance can replenish removed coins while maintaining the 21M hard cap. This economic design addresses long-term miner incentive challenges.

Zcash offers selective disclosure: users can share view keys for auditing while maintaining default privacy. Transparent addresses enable exchange compliance, while shielded addresses provide optional privacy. The protocol doesn't mix transactions, preserving individual choice in disclosure level.

The ZIP 200 upgrade schedule uses predetermined activation heights and automatic node deprecation. Nodes shut down 16 weeks post-release, forcing upgrades before consensus changes activate. This bilateral change mechanism requires network-wide coordination, making contentious forks impractical as non-upgraded nodes automatically reject new blocks.