A privacy choice other than Bitcoin! ZEC relies on zero-knowledge to prove stealth transactions. With a total of 21 million, what is the difference between it and Bitcoin?

Nakamoto 2025-11-17 11:32 90439人围观 BTC

When it comes to digital currency, the first thing most people think of is Bitcoin - as an industry pioneer, it ranks first in market capitalization with its positioning as "digital gold", 2100 The fixed total amount of 10,000 pieces makes it synonymous w

When it comes to digital currency, the first thing most people think of is Bitcoin - as an industry pioneer, it has firmly ranked first in market capitalization with the positioning of "digital gold", and its fixed total of 21 million coins has made it synonymous with anti-inflation assets. But few people know that Bitcoin also has a "privacy branch" ZEC (Zcash): it is also developed based on the Bitcoin 0.11.2 version code, with the same total number of 21 million, but relies on a core technology to achieve "transaction invisibility" and has become the benchmark for the privacy currency track.

ZEC and Bitcoin, one is like an "agent" wearing an encryption mask, and the other is like a transparent and open "notary office"”； One focuses on the privacy needs of special scenarios, and the other carries the value storage expectations of global investors. What are their core differences? Who deserves more attention? Today’s article covers everything from underlying technology, application scenarios to future risks in one go.

1. The underlying genes: public ledger vs. encrypted mask, the core logic is very different

The essential difference between Bitcoin and ZEC is determined from the underlying design - the former pursues "openness and transparency", while the latter focuses on "privacy and confidentiality".

1. Bitcoin: The “Transparent Vault of the Digital World””

Bitcoin adopts the proof-of-work (PoW) mechanism, and all transaction records are permanently written to the public blockchain, which is visible to the entire network and cannot be tampered with. It is like a public notary office:

Although the address is not directly related to real-name information, through on-chain analysis, the flow of funds can be traced (for example, if bitcoins stolen from an exchange are marked by addresses, mainstream platforms will reject them)；
The advantage is high security, strong consensus foundation, global computing power escort, and has not been broken so far.；
The shortcomings are also obvious: 10-minute transaction confirmation speed and only 7 transactions per second processing capacity, which is difficult to meet high-frequency scenarios.； And the transparency feature exposes the financial privacy of some users.

2. ZEC: “Encryption Agent” with “Privacy Switch””

ZEC completely inherits Bitcoin’s PoW mechanism and 21 million total coins, but the core upgrade is the introduction of “zero-knowledge proof (zk-SNARKs)” technology:

Transaction information can be selectively hidden: the sender and receiver addresses, as well as the transaction amount, can be encrypted and only those with the viewing key can decrypt it.；
Free switching between dual transaction modes: It supports both "transparent transactions" (publicly viewable) and "shielded transactions" (completely invisible) similar to Bitcoin, finding a balance between compliance and anonymity.；
The advantage is that its privacy protection capabilities are top-notch and it is unique in the privacy coin track.； The shortcoming is that the scale of computing power is much smaller than that of Bitcoin, and the consensus foundation is relatively weak.

Brief summary: Bitcoin is "publicly recorded value" and ZEC is "encrypted transmission value". The former lays the foundation protocol for digital currencies, and the latter supplements the privacy and security transmission layer.

2. Privacy mechanism: transparent traceability vs active invisibility, the application scenarios are very different

If the underlying genes are "innate differences", the privacy mechanism determines the "acquired application scenarios" of the two, and the user profiles are therefore completely different.

1. Bitcoin: Transparency Features Adapt to “Storage of Value””

Bitcoin’s transparent ledger exactly fits its positioning as “digital gold”:

The flow of funds is traceable, reducing the risk of fraud and money laundering, and is more easily accepted by mainstream institutions.；
Long-term holders ("whales") value its anti-inflation properties more. Even if 400,000 Bitcoins were sold recently, its market value dominance has not been shaken.；
User profile: Mainly long-term investors and asset allocators, whose core needs are "safe storage and combating inflation."

2. ZEC: Stealth features target “special needs””

ZEC's privacy mechanism makes it a "rigorously needed tool" for specific scenarios, and users focus more on "privacy-sensitive groups":

Enterprise transfer: protect business secrets (such as core customer transaction amounts, partner information) and prevent competitors from analyzing business layout through on-chain data；
Personal asset transfer: High-net-worth individuals transfer sensitive assets, or ordinary users do not want the flow of funds to be tracked；
Fight against on-chain surveillance: In a world where data leaks occur frequently, prevent personal financial information from being stolen through on-chain analysis.；
User portrait: high-net-worth individuals, practitioners in specific industries (such as foreign trade, finance), whose core needs are "privacy protection and anonymous transactions."

It is worth mentioning that ZEC's "privacy switch" design is very flexible - users can freely choose the transaction mode according to the scenario, which not only meets privacy needs, but also leaves room for compliance. This is also the key to its survival in a tightening regulatory environment.

3. Market role: digital gold vs. privacy tools, each with different emphasis on value logic

Although the total amount of both is 21 million, the value support logic is completely different, and the market performance is also differentiated.

1. Bitcoin: Relying on “consensus + liquidity” to support market value

The core value of Bitcoin is "global consensus":

As the pioneer of digital currency, it is the "wind vane" of the industry and has the highest recognition by institutions (such as MicroStrategy's holdings of more than 640,000 coins)；
The world's largest liquidity, low slippage in buying and selling, and the ability to easily accept large amounts of funds in and out. It is a well-deserved "digital gold"”；
Although price fluctuations are severe, in the long run, it is still a core asset allocation to fight inflation.

2. ZEC: Relying on “privacy needs + technical barriers” to gain a foothold

The value of ZEC depends on "the popularity of privacy protection needs":

High technical barriers: Zero-knowledge proof is the top encryption technology in the blockchain field, and ZEC is one of the earliest and most mature projects.；
The demand scenario is niche but rigid: Privacy protection is an eternal need, especially now that data privacy is receiving more and more attention, the rigid needs of enterprises and individuals are being released.；
The shortcoming is that the market capacity is small: the liquidity is far less than that of Bitcoin, the price fluctuates more, and it is more suitable for "niche allocation" rather than "core assets".

4. Future challenges: Energy consumption disputes vs regulatory risks, who has greater pressure to survive?

Both are facing their own "Sword of Damocles", and these challenges will directly affect their long-term development.

1. Bitcoin: Energy Consumption Controversy and Technology Iteration Pressure

The core challenge is mining energy consumption: the PoW mechanism requires a lot of computing power, and environmental protection disputes have never stopped. After Ethereum switched to PoS, Bitcoin’s energy consumption issue has attracted more attention；
Slow technology iteration: As a "veteran" project, it is difficult to modify the consensus mechanism, and the problems of slow transaction speed and high handling fees have not been fundamentally solved for a long time.；
The advantage is a strong consensus foundation: even in the face of many controversies, global computing power and institutional recognition continue to improve, and the ability to resist risks is stronger.

2. ZEC: Tightening of regulations is the biggest uncertainty

The core risk is supervision: the anonymous characteristics of privacy coins can easily be questioned as "money laundering and illegal trading tools" - South Korea and Japan have removed Monero and other privacy coins from the shelves. If global supervision tightens, ZEC's anonymous characteristics may change from "advantage" to "disadvantage"”；
Small computing power: Under the PoW mechanism, the smaller the computing power, the weaker the network security and the easier it is to be manipulated；
The opportunity is the explosion of privacy demand: with the popularization of data security laws, the privacy protection awareness of enterprises and individuals has increased, which may bring more demand for ZEC.

5. Complementary rather than substitute: two assets, two needs

Many people will be entangled in "Which one to choose between ZEC and Bitcoin", but in fact, the relationship between the two is not a substitute, but a complementary relationship - just like the "postcard" and "confidential envelope" in the digital world, each has its own applicable scenarios:

Ordinary investors: Bitcoin is the “asset ballast” and is suitable as the core of digital currency allocation. It is anti-inflation, has strong liquidity, and has relatively controllable risks.；
Those who are in urgent need of privacy: ZEC is a “specific scenario tool”, suitable for small proportion configuration and used for privacy-sensitive fund transfer or asset isolation.；
Advanced players: You can combine configurations according to your own needs, use Bitcoin as a base, and use ZEC to meet privacy needs, taking into account security and flexibility.

The technology itself has no absolute advantages or disadvantages. The key lies in whether it meets the needs. Bitcoin has laid the "open and transparent" foundation of digital currency, and ZEC has supplemented the "privacy and confidentiality" gap. Together, they have enriched the ecology of digital currency and met the diversified needs of different users.

Conclusion: The future of privacy coins lies in the “balance between compliance and privacy””

The emergence of ZEC proves that digital currency can not only be "digital gold", but also a "privacy tool." Today, when data privacy is becoming more and more important, the technical value of ZEC cannot be ignored, but regulatory risks also require a high degree of vigilance.

For Bitcoin, it is still the "basic market" of digital currency, and its consensus and liquidity are unmatched.； For ZEC, its future depends on whether it can find a more precise balance between "privacy protection" and "compliance supervision" - only when it is recognized by mainstream supervision can privacy coins move from "niche track" to "mass application".

For investors, there is no need to be either/or: they can allocate according to their own needs. The core is to recognize the difference in positioning between the two, not blindly follow the trend, and keep the bottom line of risk.