What is Zcash (ZEC)?
Zcash (ZEC) is a cryptocurrency launched on 28 October 2016 that works like Bitcoin but lets you send shielded payments, which hide the sender, receiver and amount using zero-knowledge proofs. Privacy is optional: transparent ZEC is as public as Bitcoin, so to get the privacy you need a wallet that keeps your coins shielded.
Zcash is a proof-of-work cryptocurrency with a fixed supply of 21 million coins, the same cap as Bitcoin. Its big difference is shielded transactions: payments whose sender, receiver, amount and memo are encrypted on the public blockchain, while the network can still check that no coins were created out of thin air.
This page explains how Zcash works, what changed in 2026, who builds it now and what that means for you as a holder. ZEC Wallet Guide is an independent guide and is not part of any Zcash organisation.
Zcash in one table
| Item | Detail (October 2026) |
|---|---|
| Ticker | ZEC (smallest unit: the zatoshi, 1 ZEC = 100,000,000 zatoshi) |
| Launched | 28 October 2016 |
| Maximum supply | 21,000,000 ZEC |
| Consensus | Proof of work (Equihash), mined with ASICs |
| Block time | 75 seconds on average until NU7, which plans 25 seconds (target around 5 November 2026; a delay is possible) |
| Block reward | 1.5625 ZEC per block until NU7, which scales the per-block amount down for 25-second blocks so daily issuance stays the same: 80% to miners, 8% to Zcash Community Grants, 12% to a coinholder-controlled fund |
| Shielded pools | Ironwood (current, live since 28 July 2026), Sapling (still supported), Orchard (withdraw-only), Sprout (legacy) |
| Standard fee | 0.0001 ZEC for a simple payment (ZIP-317) |
How Zcash works
Zcash started as a fork of Bitcoin's code, so the basics are familiar: miners bundle transactions into blocks, coins are sent to addresses and every node keeps a copy of the chain. What Zcash adds is a set of shielded pools. Coins inside a shielded pool are recorded as encrypted "notes". When you spend one, your wallet produces a zero-knowledge proof (a zk-SNARK) that says, in effect, "this spend is valid and balanced" without revealing which note was spent, who received it or how much moved.
Zcash also keeps transparent addresses (starting with t1 or t3) that work exactly like Bitcoin addresses. Many exchanges and multi-coin wallets only support these. Transparent ZEC has no privacy at all. Our guide to shielded vs transparent ZEC explains the difference in detail.
Modern wallets hand out a single unified address (starting u1) that bundles a shielded receiver and, optionally, a transparent one. The sender's wallet picks the most private receiver it supports.
Optional privacy: the trade-off
Unlike Monero, where every transaction is private, Zcash lets users choose. That choice has helped ZEC stay listed on regulated exchanges such as Coinbase, Kraken and Gemini, and a US spot ETF began trading in August 2026. The cost is that privacy depends on behaviour. If you buy ZEC on an exchange and leave it in a transparent address, your history is as visible as Bitcoin's.
About 4.89 million ZEC, roughly 28.9% of supply, sat in shielded pools in September 2026 (KuCoin, Sep 2026). See is Zcash traceable? for what researchers have found about real-world privacy, and Zcash vs Monero for the design comparison.
What changed in 2026
If you read an older guide, much of it is now wrong. The main changes:
- The Electric Coin Company team left. On 7 January 2026 the entire ECC staff resigned after a dispute with its Bootstrap board and announced a new company, later named Zcash Open Development Lab (ZODL). The protocol itself was unaffected (The Block, 7 Jan 2026).
- Zashi became Zodl. The rename of the wallet ECC built was announced on 16 February 2026 and delivered through a normal app update. See our Zodl review.
- A flaw was found in the Orchard pool. In late May 2026 a bug in the Orchard circuit was found that could in theory have allowed undetected counterfeiting. Orchard was frozen and patched in early June, and no evidence of exploitation was reported. Details: the Orchard vulnerability explained.
- Ironwood replaced Orchard. The NU6.3 upgrade on 28 July 2026 (block 3,428,143) launched a new shielded pool called Ironwood. Orchard can now only be withdrawn from. Your
u1address did not change. See what is Ironwood? - YWallet was retired and its developer's successor wallet is Zkool. zcashd reached end of life on 18 July 2026 and is replaced by Zallet with a Zebra node.
- NU7 is next. Activation height 3,543,405 was agreed for around 5 November 2026. It cuts the block time to 25 seconds, disables old v4 transactions and adds the Network Sustainability Mechanism; developers said it should not significantly affect wallets (Cointelegraph, 18 Sep 2026; KuCoin, 21 Oct 2026). A delay is possible.
Who builds Zcash now
Zcash has no single owner. As of October 2026 the main groups are:
- ZODL (Zcash Open Development Lab): the former ECC team. Builds the Zodl wallet and announced a $25M seed round on 9 March 2026 (The Block).
- Zcash Foundation: a non-profit that maintains Zebra, the main full-node software after zcashd's retirement.
- Zcash Community Grants: receives 8% of block rewards and funds independent developers.
- Independent wallet teams such as Zingo Labs (Zingo!), the developer of Zkool, Cake, Edge, Unstoppable, Keystone and Ledger.
A further 12% of block rewards goes to a coinholder-controlled fund created by NU6.1 on 24 November 2025. More on that in Zcash supply and halvings.
How people use ZEC
- Private payments. Send ZEC from one shielded address to another and observers see only that a shielded transaction happened.
- Encrypted memos. Shielded payments can carry a private text note, which some wallets use as a messaging feature.
- Selective disclosure. A viewing key lets you show your history to an accountant or auditor without giving them spending power.
- Investment. ZEC trades on major exchanges. It is volatile: it rose from about $74 on 1 October 2025 to $750 on 7 November 2025, fell sharply after the Orchard disclosure in June 2026, then passed $1,000 in September 2026, peaked near $1,700 in early October and traded around $1,220 on 23 October 2026. Live numbers: ZEC price.
Getting started safely
- Pick an Ironwood-ready, shielded wallet from our best Zcash wallets list. Avoid transparent-only wallets if you want privacy.
- Write down the seed phrase and birthday height on paper, offline. See how to create a Zcash wallet.
- Buy ZEC on an exchange available where you live (how to buy Zcash), then withdraw it to your wallet and shield it (how to shield ZEC).
- Learn the common scams before you hold meaningful amounts: Zcash scams to avoid.
Owning ZEC is legal in most countries, but some restrict exchanges from offering it, and the EU plans tighter rules from July 2027. Check is Zcash legal? before you buy.
Frequently asked questions
Is Zcash the same as Bitcoin?
No. Zcash began from Bitcoin's code and shares the 21 million cap and proof-of-work mining, but it adds shielded pools that encrypt sender, receiver and amount. It has its own blockchain, coin (ZEC) and development community.
Is every Zcash transaction private?
No. Privacy is optional. Transactions between transparent addresses are fully public. Only shielded transactions, made with a wallet that supports the current Ironwood pool or Sapling, hide the details.
Who controls Zcash?
No single company. The former ECC team now works as ZODL, the Zcash Foundation maintains the Zebra node, and Zcash Community Grants funds other developers. Network upgrades need broad agreement among node operators and miners.
Did the 2026 Orchard bug lose anyone money?
No evidence of exploitation was reported. Orchard was frozen and patched in June 2026, and funds were moved into the new Ironwood pool through a public turnstile that lets anyone check total supply.
What is the best way to hold ZEC?
A self-custody wallet that keeps funds shielded and supports Ironwood, with your seed phrase written down offline. For larger amounts consider a hardware wallet with shielded support, such as Keystone or Ledger.