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Zcash (ZEC) is a cryptocurrency that supports both transparent and shielded transactions. Shielded payments use zero-knowledge proofs to let the network verify that a transaction follows its rules without publishing the protected details. But ZEC is not automatically private: the address type and path a transaction takes affect what observers can see.
What is Zcash?
Zcash is a decentralized payment protocol that combines a transparent payment scheme with a shielded one. Its official protocol specification describes it as “an implementation of the Decentralized Anonymous Payment scheme Zerocash, with security fixes and improvements to performance and functionality.” Read the versioned Zcash protocol specification.
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ZEC is the currency used by the network. A transaction can use transparent addresses, whose transaction details are visible on the public ledger, or shielded addresses, which are designed to protect transaction details. Which form is used depends on the addresses and transaction path—not simply on holding or sending ZEC.
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How do shielded transactions work?
Notes, commitments, and proofs
A shielded payment represents value in a note associated with a shielded payment address. The protocol uses commitments and zero-knowledge proofs to enforce validity rules without revealing the protected details to public observers. Shielded transaction information can be encrypted on-chain while the network still checks that the transaction satisfies consensus rules.
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What a zk-SNARK proves
A zk-SNARK—short for zero-knowledge succinct non-interactive argument of knowledge—lets a prover demonstrate that a statement is true, or that it knows information required to support the statement, without disclosing that information to the verifier. It does not mean that every fact about every Zcash transaction is hidden; the proof applies to shielded transactions and their protocol rules. The Zcash Foundation’s zk-SNARK explainer describes how shielded details can be encrypted while transactions remain verifiable.
Transparent and shielded transactions compared
| Transaction type | What public observers can see | Privacy implication |
|---|---|---|
| Transparent | Transaction details are public on the ledger. | It does not provide the detail-hiding protection of a shielded payment. |
| Shielded | Protected transaction details are encrypted; proofs allow consensus checks without publishing those details. | Details are shielded within the relevant pool, but the transaction path and any move to a non-shielded address can disclose information. |
What are Sapling and Orchard?
Zcash has multiple shielded pools, including Sapling and Orchard. A pool is a distinct shielded system with its own notes and anonymity set: Orchard activity is not simply merged into the Sapling or older Sprout pool. Orchard was introduced with the NU5 network upgrade, which activated at block 1687104 on May 31, 2022. NU5 also introduced Unified Addresses and the Halo proving system. See the NU5 proposal and the Orchard protocol documentation.
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Orchard’s documented keys and addresses support spending Orchard notes. Mainnet Unified Addresses use the u1 prefix and can bundle different address types, making it possible for a sender to use a compatible address type without the receiver having to share several separate addresses. A Unified Address does not itself make every transaction shielded; the actual address component and payment path matter.
Where Zcash privacy can break down
- Using a transparent address: transparent transactions expose details on the public ledger.
- Moving between pools: Orchard has a separate anonymity set from Sapling and Sprout. Entering or leaving Orchard uses a transparent turnstile, so the transaction path can reveal value.
- Sending out of Orchard: spending from Orchard to a non-Orchard address reveals the transaction amount.
As a result, “shielded” describes protections for transaction details within a particular protocol path, not a guarantee that every use of ZEC conceals all activity. Wallet support and the choices a user makes determine whether those protections are used.
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What to check in a Zcash wallet
For someone considering ZEC for shielded payments, check whether a wallet supports shielded addresses and the relevant pool, what transaction paths it supports, and who controls the keys. Self-custody means the user controls the wallet keys; it also makes safeguarding recovery information the user’s responsibility.
The Zcash ecosystem directory describes Zashi as a self-custody, Zcash-only shielded wallet. That is the directory’s description, not an independent assessment of the wallet. Features and compatibility can change, so check current wallet documentation and the Zcash ecosystem directory before relying on a particular capability.
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Protocol privacy is not website or provider privacy
The Zcash Foundation’s privacy policy concerns data handled through its website. It says the Foundation does not have access to wallet keys, seed phrases, or shielded transaction contents, and it does not govern third-party wallets or services. It should not be read as a guarantee about Zcash’s protocol or the privacy practices of every wallet provider. The policy says it was updated July 1, 2026; consult the Foundation privacy policy for its current terms.
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