ZCash is a privacy-focused cryptocurrency that was designed to offer enhanced security and privacy for its users compared to other cryptocurrencies. It was first launched in 2016 by the Zerocoin Electric Coin Company.
ZCash is built upon and extends the Bitcoin protocol, but includes new features for privacy and security. The main innovation of ZCash is the use of a cryptographic principle known as zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). zk-SNARKs enable the network to maintain a secure ledger of balances without disclosing the parties or amounts involved in transactions.
Transactions on the ZCash network can be “transparent” (similar to Bitcoin transactions) or “shielded” for privacy. Transparent transactions operate much like Bitcoin, with details publicly visible on the blockchain. However, shielded transactions encrypt these details into a special section of the blockchain called the “zero-knowledge proof.”
This ability to provide secure, private transactions is what sets ZCash apart from many other cryptocurrencies.