1/ $ZEC Zcash is widely known as a ā€œprivacy coinā€ā€¦ but here’s the truth šŸ‘‰ It’s not fully private. Let’s unpack why, even with cutting-edge encryption, Zcash transactions can still leak information 🧵
2/ Zcash was built for optional privacy. It has two address types: 1. t-addrs = transparent (like Bitcoin) 2. z-addrs = shielded (private with zk-SNARKs) Problem? Most users still stick with the transparent option.
4/ Even when you use shielded transactions, leaks can happen. Each time coins move between shielded and transparent pools, patterns emerge. Analysts can correlate timing, amounts, and behaviour to de-anonymize users. Check out @zachxbt 's post on this
1d ago
1/ As part of my work I like to test out privacy products and figure out what works and what doesn’t so I can abuse any design flaws for my investigations. With the recent hype around Zashi & its Near Intents integration I tested it for Zcash.
5/ Zcash also kept optional transparency for regulatory reasons. This makes it easier for exchanges and institutions to adopt, but it inherently weakens the overall privacy of the ecosystem.
6/ Then there’s usability. Shielded transactions need more computational power and wallet support. Most exchanges, wallets, and custodians don’t support full shielding— so users are nudged toward transparency.
7/ Finally, there’s metadata. Even if the blockchain data is encrypted, network-level data (like IP or timing) can still leak info about who’s transacting. Without Tor or network obfuscation, privacy isn’t bulletproof.
8/ So in simple terms: Zcash’s tech is powerful, but usability, ecosystem choices, and adoption patterns limit its real-world privacy. It’s a privacy option, not a privacy default.
9/ Monero went all-in on default privacy. Zcash chose flexibility and regulatory compatibility instead. Both paths have trade-offs—but only one is truly ā€œprivate by default.ā€
10/ TL;DR Zcash isn’t completely private because: -optional privacy (not default) -low shielded adoption -behavioural linkability -compliance trade-offs -metadata exposure It’s a hybrid between privacy and transparency—by design.
11/ If you want full privacy, you need: -default shielding, -network obfuscation, -user adoption, -privacy-preserving infrastructure. Zcash nailed the tech, but culture + convenience still keep it halfway there.
12/ Please note: ZEC has been my best trade this quarter. This is not FUD, these are facts. If you enjoyed this thread please give me a follow @jedifractal and a repost would be hugely appreciated.
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