1/12 Zcash Mythbusters: Debunking FUD 🔍💥 Zcash has had its issues (trusted setup, early inflation), but it's also been a lightning rod for misinformation. This thread breaks down the most common myths and sets the record straight. Let's go 👇
2/12 Myth: Zcash has a backdoor @zooko once posted that we can make “Zcash too traceable for criminals“ which was taken out of context and spread as “Zcash has a backdoor”. What he meant, and it’s there if you read the entire thread, is that any cryptocurrency, private or not,
3/12 Myth: Transparent usage ruins shielded privacy Transparent transactions are public. Shielded transactions are encrypted. If you transact in the shielded pool, you benefit from its total anonymity set (which has been going parabolic) - even if others use transparent. 🔑
4/12 Myth: Zcash is transparent by default Zcash supports both transparent and shielded transactions. Conceptually it's similar to the internet and the use of HTTP vs HTTPS - tools choose. The protocol doesn't enforce a default, other than coinbase rewards must initially be
5/12 Myth: Shielded transactions are traceable A common mistake: people used Zcash as a "passthrough" - sending 4.357 ZEC in, then the same amount out minutes later. Easy to correlate in time and value. 🔑 "Privacy comes from from value at rest, not value in motion", i.e. keep
6/12 Myth: Zcash had an ICO False. 🔑 Zcash didn’t sell tokens to the public to initially raise funds. It was bootstrapped by private investors - no public fundraising or ICO.
7/12 Myth: Zcash has a founders tax From 2016–2020, 20% of block rewards went to early investors through the Founders Reward. From 2020–2024, the community kept the 20% but repurposed it as the Zcash Development Fund: • 12% → dev orgs (@ElectricCoinCo + @ZcashFoundation) •
8/12 Myth: The Zcash trademark makes it centralized The trademark was originally there to stop scams and proliferation of confusing forks (think Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, etc). But yes - it also made it hard for legit builders to use the brand (wallets,
9/12 Myth: Zcash still relies on a trusted setup • Sprout (2016): trusted setup • Sapling (2018): larger, multi-party setup • Orchard (2022): NO trusted setup 🔑 Orchard uses Halo - a breakthrough zero-knowledge proof system that eliminates trusted setup altogether.
10/12 Myth: Zcash is run by a for-profit company Electric Coin Company (ECC) used to be for-profit, but in 2020 its shares were donated to Bootstrap - a non-profit. Today: ✅ECC/Bootstrap = non-profit 501(c)3 ✅Zcash Foundation = 501(c)(3) public charity ✅Shielded Labs =
11/12 Myth: Zcash is US-centralized Yes, @ElectricCoinCo + @ZcashFoundation are US-based. But @ShieldedLabs is Swiss-based - and the ecosystem is much broader. Global contributors include: ✅ [Independent] @ebfull - Scaling (“Tachyon”) ✅ [Independent] @Hanh - Wallet
12/12 Zcash isn’t perfect, but it’s one of the most advanced privacy-preserving cryptocurrencies out there. 💬 Got questions? Drop them below. 🔁 Like + RT to cut through the FUD 💪🛡️ #Zcash
Another Zcash Myth-busted: https://x.com/TheVladCostea/st...
@HazyCubs Very good thread! Some things I didn't know. Thank you for that.
@HazyCubs Great thread! 🛡
@HazyCubs $ARRR fixes every issue $ZEC has.. Once Orchard upgrade is done, it's game over.. #weARRRpirates #ENDtheCEX
@HazyCubs this is a great thread Hazy! the real ones know not to take things out of context. fud is necessary for every project though, shows there's good eyes on it. privacy szn is here and it's Zcash time
@HazyCubs This thread highlights how bullish the protocol is because there isn’t a clear explained reason for the disadvantages there’s no gripping information that makes me want to explore whether it’s true or not. You’ve mentioned something but I can’t paint a picture of anything
@HazyCubs This was a great read Thanks 😊
@HazyCubs Don't fall for zionist lies. Zcash has a backdoor. They even bragged about it in the beginning.