The network’s supply of protected zcash (ZEC) in shielded addresses is currently 5 million ZEC. This represents approximately 30% of the total amount of ZEC issued. This cryptocurrency follows a monetary policy similar to Bitcoin and has a supply of up to 21 million coins. According to data from CoinMarketCap, As of this writing, there are approximately 16.5 million ZECs in circulation.
At the current price of $381 per coin, 5 million ZEC is Equivalent to approximately USD 1.9 billion Traceability within funds protected by zero-knowledge (ZK) encryption.
Unlike other networks, privacy is not mandatory on Zcash, so this amount reflects a user’s active decision to move funds to a protected address.
Published data can be verified with various on-chain analytics sources in the Zcash ecosystem, including zkp.baby and zechub.
On the other hand, the price of ZEC has been declining since early January. As CriptoNoticias explained, this is due to the main project team’s decision to move away from Electric Coin Company, the main company responsible for Zcash’s maintenance. This situation arose due to a disagreement with the board of directors.
What is a Zcash shielded transaction (shielded)?
Zcash shielded transactions use cryptographic proofs known as zero-knowledge proofs (zero knowledge proof), especially the zk-SNARKs technology.
This system allows you to verify that your operations are valid. No need to reveal sensitive information. In reality, transactions are recorded on the blockchain, but Depending on the amount, the sender and receiver will remain encrypted It cannot be seen by third parties.
Technically, Privacy system works like a pool When funds are commingled to destroy traceability and prevent financial history reconstruction and balance analysis.
However, this mechanism is not completely invisible and can be seen by any observer. When a transparent address sends funds to a shielded pool.
So, while the destination and use of funds is hidden once inside, the fact that a user has appealed to privacy remains public record.
Also, if a user moves an exact amount from a public address to a private address, and then immediately afterwards moves the same amount vice versa; An observer can suspect that a relationship exists, but cannot prove it.
To balance this confidentiality and compliance needs, Zcash allows selective disclosure (selective disclosure).
Display key (Key display), users can Share transaction details with authorized third partiesManage information from auditors, regulators, and others without exposing it to public scrutiny.
With over 5 million ZECs protected under this mechanism (nearly 30% of circulating supply), data suggests that shielding is a growing feature within its monetary base.
