Zcash: A Zero to Hero's Guide


Table of Contents


TL;DR


Why Privacy Matters

Freedom and safety begin with privacy.

No one should be forced to expose their income, spending, or net worth just to transact.

Not to corporations. Not to governments. Not to red teams. Not to anyone.

When your money is tracked, your freedom is capped and your safety is put at risk.

Surveillance money gives tyrants and thugs leverage. Private money disarms them.

Privacy isn't secrecy. It's autonomy and safety.


What Makes Zcash Unique?

True Cryptographic Privacy

Zcash uses zero knowledge proofs, specifically zk-SNARKs, to enable fully private transactions.

Unlike Monero, which uses decoys to obscure the real transaction, Zcash transactions reveal nothing (hence the "zero" in zero knowledge).

The sender, receiver, and amount are all cryptographically hidden.

Scalable by Design

Old-school zk-SNARKs were heavy, slow, and required trust. Zcash evolved past them.

With the Halo 2 proof system and soon Project Tachyon, Zcash can now scale to billions without servers knowing anything, without compromising speed.


Transparent VS Private

Zcash gives you a choice:


The Evolution of Zcash

Zcash has evolved through three major shielded pools, each one more private and scalable than the last.

Sprout (2016): The Prototype

Today: in the process of deprecation. Wallets like Zashi auto-migrate users away from it and toward the most private and secure option.


Sapling (2018): Real Usability

Sapling is still supported, but being sunset. New UX steers users away from it.


Orchard (2022): No Trust Needed

Orchard is the default in modern Zcash wallets today.


TL;DR of the Pools:


How Many People Use Shielded ZEC?

We can't know who's using shielded ZEC - by design. But we can measure how much ZEC is shielded. And it's rising fast.

Why?

Expect this to go parabolic.


What are turnstiles in Zcash?

Turnstiles are how Zcash reconciles privacy with transparency.

Every shielded pool has its own accounting gate:

They're especially crucial for older pools with trusted setups (Sprout/Sapling). Thanks to turnstiles, even if a flaw existed, any inflation would be detectable.


Does Zcash have a backdoor?

No.

The system is now truly trustless.


What About the Inflation Bug?

In 2018, a vulnerability in the Sprout pool could have allowed an attacker to mint coins undetected.

Other major cryptocurrencies have also suffered from inflation bugs:

Inflation bugs aren't rare. What sets Zcash apart is that its turnstile design ensures shielded pools can be audited indirectly. So even in the presence of privacy, you'll know if inflation occurred.


What is Project Tachyon?

Tachyon is a new architecture from Zcash cryptographer Sean Bowe. It's designed to bring private money to everyone on Earth.

Most crypto projects talk a big game about scaling to billions. For privacy coins, it's not hype, but survival. A "private" system that only few can access isn't private at all.

Today, most wallets offload work to remote servers. That helps with speed but kills privacy. You get convenience but the server sees everything.

Tachyon flips that.

It uses novel cryptograph to let untrusted servers help without learning anything. Your wallet syncs fast. The server can't tell what's yours. Not even a hint.

State contention and accumulation around the nullifier set has also been removed. Allowing private transactions to run in parallel.

No more trade-off between privacy and usability. No bottlenecks and no giving up control to get performance.

🔗 Sean Bowe explains it all

unstoppable private money

now at scale

super impressive way to scale zcash here by Sean — love it

Privacy is back https://t.co/9JfZ6WkeDJ

— mert | helius.dev (@0xMert_) April 2, 2025

Not 100% sure yet, but I’m about 70% sure that this dense technical talk that Sean Bowe just gave reveals a fundamental breakthrough in blockchain technology that will still be in use a hundred years from now.https://t.co/BU5INKom8k

— zooko🛡🦓🦓🦓 ⓩ (@zooko) March 4, 2025

Monero's Decoy-Based Privacy: Why It Fails

Monero uses decoys to hide real transactions, mixing them with fake ones. This method seems clever, but in practice, is fragile, inefficient, and increasingly obsolete.

1. Probabilistic Privacy ≠ Cryptographic Privacy

Monero assumes observers can't distinguish real outputs from decoys. This is false.

2. Privacy Decays Over Time

When some spends become known, they expose others. Over time, the anonymity set shrinks. This retroactively weakens historical privacy - something Zcash's model avoids.

3. Blockchain Bloat

Decoy based systems increase transaction size. Monero's chain grows fast, making it harder to run full nodes and undermining decentralization.

4. Even Monero Devs See the Problem

Monero developers have explored migrating to zero-knowledge proofs. They recognize that probabilistic privacy isn't future-proof.

Zcash cofounder @zooko on why Monero’s current privacy architecture can’t work:

“The Monero devs are trying to upgrade Monero to have the strong kind of privacy—basically modeled on the Zcash style. That’s a project they’ve been working on for a while now.

Humans generate… pic.twitter.com/P6MXmQwg65

— Arjun Khemani (@arjunkhemani) January 31, 2025

Has Monero's privacy been compromised in practice?

Monero's decoy-based system has fundamental flaws that make true privacy impossible.

Its weaknesses have been repeatedly exposed, allowing users to be traced.

Recently, Japanese police analyzed Monero transactions to arrest 18 scammers, proving once again that it doesn't work as promised.

🔗 Learn more about Monero's privacy limitations in this piece from Wired:


Isn't Monero better because it's private by default?

No.

Although Monero's "privacy" is always enabled, it's not as strong as Zcash's zero-knowledge system.

Monero relies on blending your transaction with decoys. Over time, patterns emerge and partial information leaks can let attackers link transactions.

Zcash's approach avoids these issues by never revealing sensitive info in the first place.


If Zcash is so private, why aren't more people using it?

Zcash's privacy isn't on by default but it's more robust than Monero's.

Adoption has been gated by UI complexity, mobile unfriendliness, and lack of hardware wallet support.

With Zashi, Keystone, and Tachyon, those barriers are crumbling.


How Private Is Zcash Compared to Monero?

In privacy preserving cryptocurrencies, anonymity sets are often used as shorthand to express how well your activity is hidden among others. But this concept is often oversimplified.

An anonymity set isn't simply "how many transactions yours could be confused with." More precisely, it's "how many different users your transaction could plausibly be linked to." This subtlety matters because in Zcash and Monero, transactions are obscured in fundamentally different ways.


TL;DR — Which is bigger?

Metric Zcash (Orchard) Monero
Anonymity set per spend ~5.57 million 16 per input

Zcash Anonymity Set (as of May 2025)

What This Means

When you make a shielded transaction in Zcash's Orchard pool, the protocol proves (cryptographically and in zero knowledge) that:

"I'm spending some note among these 5.57 million, without revealing which."

No decoys. No sampling. The entire shielded pool becomes the search space.

In short: Zcash hides your action among everything the protocol could ever plausibly spend.

But this anonymity set only applies at the time of the spend. It can't grow retroactively.


Monero Anonymity Set (as of May 2025)

What This Means

Every Monero transaction input uses a ring signature: a cryptographic method that blends one real input with 15 sampled decoys. These decoys are drawn from recent outputs on chain.

So even though you nominally have a 1-in-16 cover, the actual anonymity may be much lower.

This also makes Monero vulnerable to intersection attacks, where linking multiple transactions can drastically reduce the possible source set.


Clarifying a Common Misconception About Zcash's Anonymity Set

Monero advocate Riccardo Spagni (a.k.a. fluffypony) recently claimed that Zcash's privacy depends on how many people are actively using it.

You literally haven’t address what he raised in any way.

It doesn’t matter if ZCash’s magical cloud of privacy is perfect in every way. If only 1000 people enter the cloud that is your entire anonymityset. You can then remove users who clearly couldn’t have committed the…

— Riccardo Spagni (@fluffypony) May 4, 2025

This is factually incorrect. Here's why:

How Zcash Actually Works

Zcash's shielded transactions use zk-SNARKs to prove, in zero knowledge, that a note exists in a cryptographic structure called a Merkle tree. When you make a shielded spend in Orchard (Zcash's most advanced pool), the protocol proves:

"This note is one of the X existing notes in the pool, and it hasn't been spent yet."

As of May 2025:

It does not matter how many people are transacting today.

The anonymity set is defined cryptographically, and it always grows.

Zcash's anonymity set is cumulative, not reactive.


How This Compares to Monero

Feature Zcash Monero
Anonymity Set 5.57M+ notes (as of May 2025), ever-growing 16 (1 real + 15 decoys), fixed per input
Defined By Cryptographic commitment tree (Merkle) Protocol rule + sampling algorithm
Grows Over Time? Yes, monotonically No, fixed
Decoy Reuse/Linkability None (zero-knowledge proof) Possible via chain analysis

So Why Do Some Critics Say Zcash Privacy Is Weak?

Because historically:

But that's changing. New wallets like Zashi:

Zcash always had strong cryptography. Wallets are now catching up.


Does the wallet leak information to the RPC node?


🔚 Conclusion