What Is Zcash & How to Mine Zcash?

What Is Zcash?

Zcash​‍​‌‍​‍‌​‍​‌‍​‍‌ (ZEC) is a cryptocurrency that revolves around the privacy principle, and it is tailor-made for the situation where a user can choose to stay anonymous or display transaction details.

In Bitcoin, where every transaction is open for viewing on the blockchain, Zcash does not reveal information unless you want to.

It is possible to carry out transactions in “shielded” mode to have absolute privacy or in “transparent” mode if you want to have access to the public ‌ ​‍​‌‍​‍‌​‍​‌‍​‍‌ledger.

Definition & Purpose

Zcash was launched in 2016 by the Electric Coin Company (ECC). Its mission is simple but powerful: to give people financial privacy in a public blockchain world. Think of it as Bitcoin’s younger, more private sibling. Both run on a decentralized blockchain, but Zcash hides personal transaction details using advanced cryptography.

This technology ensures that even though the blockchain remains public and verifiable, the sender, receiver, and amount can be hidden if the user chooses to.

Zcash was designed to solve a major problem in early cryptocurrencies – the lack of privacy. While Bitcoin records every transaction forever, Zcash lets you decide what to reveal.

Key Features That Make Zcash Unique

These features together make Zcash a standout in the world of privacy coins – more advanced than many older systems.

How Zcash Differs from Bitcoin & Other Cryptos

Both Bitcoin and Zcash use Proof-of-Work (PoW) for mining, but Zcash uses a different algorithm called Equihash, designed to be memory-intensive. This makes mining more accessible to GPUs rather than only specialized ASICs.

The major difference, though, is privacy control. In Bitcoin, every wallet and transaction can be traced. In Zcash, you can decide whether your transaction is visible or hidden – giving users true financial autonomy.

Another difference is in its community focus. Zcash continues to evolve with network upgrades like NU5 and future plans for Proof-of-Stake (PoS) transition to reduce energy use while keeping privacy intact.

Zcash is the bridge between transparent finance and private digital money. It gives you the power of choice – privacy when you need it, transparency when you want it.

How Does Zcash Work?

Zcash works by combining blockchain technology with advanced cryptography to protect transaction privacy. It uses a system called zk-SNARKs (Zero-Knowledge Proofs) that allows the network to confirm transactions as valid without showing any personal or transaction data.
Zcash proves your payment is real without revealing who you are, who you’re paying, or how much you’re sending.

Blockchain & Consensus Mechanism (Equihash / Proof-of-Work)

Just​‍​‌‍​‍‌​‍​‌‍​‍‌ like Bitcoin, Zcash is also based on a Proof-of-Work (PoW) blockchain. That is to say, miners have to find the solution to complicated mathematical puzzles to be able to verify transactions and make the network secure. As a result, they are given some Zcash (ZEC) in return for their efforts.

Zcash is not using the same SHA-256 algorithm as Bitcoin. The developers have decided to go with Equihash, which is a memory-hard algorithm that works best with GPUs (graphics cards).

The reason for that was to make the mining process more open and less profitable for the heavy industrial-scale miners who usually have powerful ASIC ​‍​‌‍​‍‌​‍​‌‍​‍‌machines.

Here’s a simple comparison:

This design keeps Zcash’s mining fairer and more distributed while maintaining security.

Transactions: Transparent vs Shielded Addresses

Zcash has two types of addresses, which give users flexibility:

1. Transparent Addresses (t-addresses) – Work just like Bitcoin. Transactions are public, and anyone can see the sender, receiver, and amount on the blockchain.
2. Shielded Addresses (z-addresses) – Offer complete privacy. Transactions are encrypted using zk-SNARKs, so no one (not even miners) can view transaction details.

Users can send funds in four ways:

This flexibility allows people to balance privacy and compliance, depending on their needs.

Network Architecture & Security

Zcash’s blockchain functions similarly to other PoW systems, but the real innovation lies in how zk-SNARKs validate encrypted data. These proofs ensure no double-spending or fake transactions occur, even when the details are hidden.

Additionally:

• Nodes maintain network consensus by verifying cryptographic proofs rather than viewing transaction contents.
• Miners compete to solve Equihash puzzles and add blocks.
• Upgrades like Halo 2 (integrated in 2023) have removed the need for a “trusted setup,” making Zcash’s cryptography even more secure and transparent.

Imagine you’re showing a friend that you’ve paid your rent, but without sharing your bank balance or transaction details. Zcash lets you do exactly that – prove something is true without revealing private information.

What’s the Current State of Zcash (as of November 10, 2025)?

Zcash (ZEC) is still an active, privacy-driven cryptocurrency with a growing focus on decentralization, proof-of-stake transition, and long-term sustainability.

As of November 10, 2025, Zcash continues to be one of the most respected privacy coins in the crypto space, though it faces competition from projects like Monero and newer zero-knowledge platforms.

Market Value & Circulation (as of November 10, 2025)

Based on 10 Nov 2025 data:

Data Source: Mining statistics from MiningNow.com (accessed on Nov 10, 2025).

Zcash’s price has seen volatility through 2025, driven by two major factors:

1. Increased institutional focus on privacy-preserving technology.
2. Ongoing development updates that improve scalability and reduce energy use.

Despite the bear-to-bull market fluctuations, Zcash has maintained steady trading activity across major exchanges like Binance, Coinbase, and Kraken.

Development Updates & Roadmap (2025 Outlook)

The Electric Coin Company (ECC) and the Zcash Foundation have continued pushing updates through the Halo Arc framework and NU6 (Network Upgrade 6). These updates focus on:

• Transitioning toward Proof-of-Stake (PoS) – to reduce energy consumption and encourage staking rewards.
• Mobile wallet improvements – particularly for shielded transactions, making them faster and cheaper to process.
• Cross-chain compatibility – Zcash is integrating with Ethereum and Cosmos ecosystems for interoperability.

Here’s a brief timeline snapshot:

These updates make Zcash one of the most technologically advanced privacy coins, aligning it with modern crypto standards while keeping its core privacy mission intact.

Mining Rewards & Emission Schedule

Zcash miners are still rewarded via Proof-of-Work. As of today:

• Block Reward: 3.125 ZEC per block (post-2024 halving)
• Mining Reward Split: 80% miners, 20% development fund
• Block Time: ~75 seconds

At today’s ZEC price of $657.11, a miner earning 3.125 ZEC per block is effectively earning about $2,054 per block before fees and electricity costs.

This shows that Zcash remains profitable for efficient GPU or ASIC miners, especially those with access to low-cost electricity.

Community & Adoption

Zcash continues to attract privacy advocates, developers, and fintech explorers. Many see it not just as a coin, but as a technology layer for privacy in Web3 and DeFi systems.

The Zcash Foundation and community developers are actively working on decentralized identity, private stablecoin integration, and regulatory-compliant privacy tools – bridging the gap between anonymity and compliance.

Why Mine Zcash?

You mine Zcash because it remains one of the most rewarding and privacy-respecting cryptocurrencies in 2025, with strong profitability and a fair mining structure. Unlike many newer coins, Zcash’s network is still Proof-of-Work (PoW), allowing miners to earn consistent rewards while contributing to a secure and private financial system.

Potential Profitability & Use Cases

Mining Zcash is still profitable – especially when done efficiently. Using the most recent data from November 10, 2025, your mining setup (as shown in the attached calculator) gives us these real figures:

Profitability (Nov 10, 2025):

Data Source: Mining statistics from MiningNow.com (accessed on Nov 10, 2025).

These are impressive returns for a single mining rig drawing only 300 watts – showing that Zcash’s mining algorithm (Equihash) still supports fair profitability, especially in regions with cheap power.

Practical Uses for Earned ZEC:

• Hold as a long-term privacy investment.
• Trade or sell on exchanges like Binance, Coinbase, or Kraken.
• Spend privately via shielded transactions.
• Reinvest into additional mining rigs or staking setups (once PoS is introduced).

Pros & Cons of Mining Zcash

Overall, Zcash remains one of the most accessible and profitable privacy coins to mine compared to others that have already moved to PoS or centralized systems.

Environmental & Energy Considerations

Zcash’s Equihash algorithm is designed to be memory-intensive but energy-efficient compared to Bitcoin’s SHA-256.

At 300 watts per mining rig:

• You’d consume ~7.2 kWh per day, costing just $0.50/day at $0.07/kWh.
• Annual energy cost: ~$182.50/year – very manageable for a profitable operation.

And with the upcoming Proof-of-Stake (PoS) transition expected in late 2026 or early 2027, Zcash’s energy footprint will drop even further, aligning with global sustainability goals.

This eco-conscious evolution gives miners two options:

1. Keep mining now while it’s profitable under PoW.
2. Transition to staking later when PoS rewards begin.

Either way, early miners will have an advantage through accumulated ZEC holdings.

How to Mine Zcash: Step-by-Step Guide

To mine Zcash (ZEC), you need compatible hardware, mining software, a secure wallet, and a mining pool connection. Once you’ve set those up, your computer starts solving cryptographic puzzles (Equihash) to verify transactions and earn ZEC rewards.

Now let’s go step-by-step, so even a beginner can start mining today.

Step 1: Choose Your Mining Hardware

Zcash uses the Equihash algorithm, which is best suited for GPUs and certain ASIC miners designed specifically for this algorithm. The type of hardware you pick determines your performance and profitability.

If you’re just starting, begin with one GPU setup. Once you’re comfortable, you can scale up or switch to ASICs for higher hashrates and better efficiency.

Step 2: Set Up a Zcash Wallet

Before you mine, you need a Zcash wallet to store your earnings. Zcash offers two main address types:

Recommended Wallets (as of 2025):

Once installed, copy your wallet address – you’ll need it for the mining software setup later.

Step 3: Join a Mining Pool or Mine Solo

Mining solo is possible but rarely profitable for individuals due to high difficulty. Joining a mining pool increases your chances of earning consistent rewards by combining computing power with other miners.

Popular Zcash Mining Pools (2025):

Check pool reliability and server location before joining. A nearby server reduces latency and increases efficiency.

Step 4: Install and Configure Mining Software

Once your hardware and pool are ready, install mining software that supports Equihash.

Popular Software Options:

• EWBF Miner (Best for NVIDIA GPUs)
• lolMiner (Great for both AMD and NVIDIA)
• Bminer (Efficient and easy to configure)
• ASIC Firmware (For Z15 and similar machines)

Basic Configuration Example:

miner.exe –server eu1-zcash.flypool.org –port 3333 –user t1XYZyouraddress.worker1 –pass x

Replace t1XYZyouraddress with your actual wallet address and “worker1” with your rig name. Save the file as start.bat and run it – your rig will start mining ZEC!

Step 5: Monitor, Maintain & Optimize

Mining isn’t “set and forget.” You’ll want to:

• Monitor your rig’s temperature, hashrate, and fan speed.
• Use platforms like Hive OS or Awesome Miner for tracking multiple rigs.
• Reboot periodically or adjust overclocking for maximum efficiency.
• Withdraw mined ZEC regularly to your secure wallet.

Optimization Tips:

• Keep GPUs under 70°C to extend their life.
• Update drivers monthly.
• Use efficient cooling setups to save power.

Mining Zcash in 2025 doesn’t require huge investment – just smart setup and consistent monitoring. Whether you’re using a high-end GPU or an ASIC, your rig can start earning within hours.

Once your wallet, pool, and miner are properly configured, you’re officially part of the Zcash blockchain network, helping secure privacy-based finance while earning passive income.

Calculating Mining Earnings (Updated for Nov 10, 2025)

Your Zcash mining earnings depend on your hashrate, power usage, electricity cost, mining difficulty, and the current ZEC price. By using these factors, you can estimate your daily, monthly, and yearly profitability before investing in hardware or scaling your setup.

Know Your Mining Parameters

Here’s a quick summary of the standard setup (using your updated numbers for the Antminer Z15 Pro):

This setup represents one of the most efficient Equihash ASIC miners currently available.

Check out: How to Setup Bitmain Antminer Z15 Pro

Estimate Daily and Monthly Earnings

Mining profitability is calculated using the formula:

Profit = (Daily Mined ZEC × ZEC Price) – Electricity Cost – Pool Fees

From your earlier calculator data, at 840 kSol/s, the miner earns roughly 0.0917 ZEC per day.

Data Source: Mining statistics from MiningNow.com (accessed on Nov 10, 2025).

Profitability can fluctuate based on network difficulty and ZEC price volatility. Always recheck calculations using a live mining calculator like Miningnow.com.

Compare Hardware Options

If you’re deciding between GPU mining and ASICs, here’s a side-by-side look at 2025 profitability trends:

ASICs like the Z15 Pro dominate Zcash mining in 2025 due to efficiency and scale, though GPUs remain useful for flexibility and mining other Equihash-based coins.

Use a Mining Calculator

You can estimate earnings with live calculators like:

• Miningnow Mining Calculator
• WhatToMine

Input the same data (hashrate, power, electricity rate, and pool fee) to get instant updates.

Always check the current network difficulty, as this directly affects block rewards and daily ZEC yield.

Key Factors Affecting Profitability

Mining Zcash in 2025 remains profitable, especially for miners with low electricity costs and efficient ASIC hardware. At today’s rate, an Antminer Z15 Pro can earn around $56.84/day in clear profit – a strong return for a single machine.

Over time, even as the network difficulty fluctuates, miners can offset rising costs through hardware upgrades, multi-coin mining, or by reinvesting earned ZEC into staking once the Proof-of-Stake model is introduced.

Troubleshooting & Best Practices

Zcash mining runs smoothly when your hardware, software, and network are correctly configured. However, miners often face challenges like overheating, unstable connections, low hashrates, or wallet sync issues. The good news? These problems are easy to fix with the right troubleshooting steps and maintenance habits.

Common Mining Problems & How to Fix Them

Here are some of the most frequent issues miners experience – along with real-world solutions you can apply today: