In ZCash, what is the difference between Z Address, T Address, and UA Address?

Cryptocurrency Basics

ZCash is a privacy-focused cryptocurrency that offers different types of addresses to cater to different levels of privacy and usability. The main difference between Z Address, T Address, and UA Address in ZCash lies in their privacy features and how transactions are handled with these addresses.

1. Z Address (Shielded Address)

Z Addresses are the privacy-oriented addresses in ZCash, providing a high level of anonymity for users. Transactions between Z Addresses are encrypted and completely private, hiding the sender, receiver, and the transaction amount from public view. They use zero-knowledge proofs (zk-SNARKs) to verify transactions without revealing any transaction details on the blockchain.

2. T Address (Transparent Address)

T Addresses are similar to Bitcoin addresses and do not provide the same level of privacy as Z Addresses. Transactions between T Addresses are public, with the sender, receiver, and transaction amount visible on the blockchain. Users can still benefit from ZCash’s cryptographic features by moving funds between T and Z Addresses, but transactions between T Addresses do not provide strong privacy.

3. UA Address (Unified Address)

Introduced with the Zcash Network Upgrade 5 (NU5), Unified Addresses (UAs) simplify the user experience by combining Z Addresses and T Addresses into a single address format. Users no longer need to manage multiple address types separately. Instead, a single UA can receive both shielded and transparent transactions. This unified approach makes it easier for users to manage their ZCash funds and take advantage of privacy features.

In summary, Z Addresses provide the highest level of privacy in ZCash, T Addresses offer transparency similar to Bitcoin addresses, and Unified Addresses combine both types of addresses to simplify the user experience.

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