# Zcash (ZEC): D-Score 68/100 — Decentralized

**BlockIndex D-Score: 68/100 (Decentralized).** Zcash (ZEC) is a Layer 1 cryptocurrency using PoW consensus. Zcash: Privacy-first Layer-1 using zk-SNARKs/NU5 (Halo 2), PoW SHA-256, Zebra (Rust) node, and foundation-led governance.

_Source: https://blockindex.ai/coin/zec · Data by BlockIndex.AI · Updated 2026-06-19_

## D-Score breakdown (0-100, higher means more decentralized)
| Component | Score |
| --- | --- |
| Overall D-Score | 68 |
| Node distribution | 30 |
| Initial distribution | 0 |
| Governance | 21 |
| Age and history | 12 |
| Autonomy | 5 |

## Key facts
- Layer: Layer 1
- Consensus: PoW (SHA-256)
- Launch: Other (2016)
- Founder: Zooko Wilcox-O'Hearn; Electric Coin Company (ECC)
- VC funded: No
- Max supply: 21,000,000
- Circulating: 16,707,875 (79.6%)

## Market data (as of 2026-06-19)
- Price: $449.97
- Market cap: $7.52B
- 24h volume: $484.22M
- 24h change: -2.79% · 7d change: +5.80%

## About
Zcash is a privacy-first, Layer-1 cryptocurrency that launched its mainnet on October 28, 2016. Originally forked from Bitcoin’s codebase, Zcash introduced practical zero-knowledge proofs to mainstream blockchain privacy by enabling optional shielded transactions that can hide sender, recipient, and amount data. The project was founded by Zooko Wilcox-O'Hearn and supported by the Electric Coin Company (ECC) and the Zcash Foundation; over time it has evolved from the original zcashd implementation toward a Rust-based node (Zebra) and an ecosystem that balances privacy, compliance and developer stewardship. Zcash’s narrative emphasizes strong cryptographic primitives, optional privacy for user choice, and a governance model that mixes foundation stewardship, developer company contributions, and community input.

Technically, Zcash separates transparent and shielded transaction flows and has advanced its privacy stack through several major network upgrades, including Sapling, Canopy, NU5 (Halo 2) and Orchard. NU5 eliminated the need for a trusted setup by migrating Zcash to Halo 2-style constructions, and Orchard improved the efficiency and usability of shielded pools. The project has pursued a deliberate modernization of its node software, most notably the migration from zcashd to the Rust-based Zebra implementation and a series of Zebra releases (including Zebra 3.1.0) that emphasize stability, multi-architecture support and improved mempool behavior. Consensus is Proof-of-Work using the SHA-256 hash function, and the chain retains a UTXO architecture similar to Bitcoin while adding privacy-preserving transaction types.

Zcash’s real-world use cases focus on private payments, selective transparency for compliance or audits, and developer tooling that enables integrations such as shielded payment rails. In 2024–2025 the ecosystem saw increased integrations (Maya Protocol liquidity tooling, Zashi CrossPay for private cross-chain payments), privacy payment partnerships (NymVPN) and institutional interest (Grayscale Zcash Trust filings). Shielded usage remains a core differentiator (with over 4.8M ZEC reported shielded in sources), while the Major Grants Fund and other post-Canopy funding mechanisms support developer work, tooling and research. The project’s 2025 momentum also included improved UX for privacy through wallet efforts (Zashi CrossPay) and deeper node-tooling (Zebra Launcher alpha, Zebra 3.1.0).

Economically, Zcash is a capped-supply PoW coin with a maximum supply of 21,000,000 ZEC and a circulating supply reported at ~16.44M ZEC in the provided sources. Monetary policy follows miner block subsidy issuance with periodic halving events; historically the block subsidy included a founders’ allocation (20% of block subsidy) which was restructured by the Canopy upgrade (Nov 18, 2020) into allocations among the Major Grants Fund, ECC and the Zcash Foundation (8% / 7% / 5%). Canopy also halved the miner subsidy at the designated block height. These funding flows underpin ongoing development and grants but mean Zcash is not considered a pure “fair launch” under strict definitions. Market snapshots in 2025 show strong price and market-cap performance, and TVL metrics indicate Zcash leading the privacy sector in Total Value Locked as of late 2025.

Governance is hybrid and primarily off-chain: protocol upgrades and major decisions are coordinated through ECC, the Zcash Foundation, community contributors, and grant mechanisms rather than via an on-chain DAO voting mechanism. This model has proven pragmatic for coordinating cryptographic upgrades, maintenance of node software (Zebra) and funding of ecosystem work, though it also invites community debate on decentralization, trademark stewardship and long-term funding principles. Roadmap priorities emphasize shielded usability, node robustness, cross-chain private rails and continued cryptographic research and implementation refinement.

## Links
- Website: https://z.cash/
- Whitepaper: https://z.cash/technology/
- GitHub: https://github.com/nighthawk-apps/zcash-explorer

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About the D-Score: BlockIndex.AI rates decentralization from 0 to 100 across node distribution, initial distribution, governance, age and history, and autonomy. Methodology: https://blockindex.ai/dscore