Z-Address

A Z-address is a type of address used in the Zcash cryptocurrency protocol. It's specifically designed to provide enhanced privacy features, allowing users to make private transactions where the sender, receiver, and transaction amount are hidden on the blockchain.

In Zcash, there are two types of addresses: transparent addresses (t-addresses) and shielded addresses (z-addresses). While transparent addresses function similarly to Bitcoin addresses and allow for public transactions, shielded addresses provide advanced privacy features by utilizing zero-knowledge proofs.

When a transaction is made using a z-address, it employs zero-knowledge proofs to verify the validity of the transaction without revealing any sensitive information. This ensures that the sender, recipient, and transaction amount remain confidential while still being validated by the network.

Z-addresses are crucial for users who prioritize privacy in their transactions, as they offer a high level of anonymity and confidentiality. They enable users to conduct private transactions on the Zcash blockchain, ensuring that their financial activities remain confidential and secure.