Research · Explainer

What shielded Zcash actually hides, and what it doesn't

Sender, receiver and amount are private. Here's where the edges are.

Oct 20, 2026  ·  6 min read  ·  ZCode team

Fig. 01 — hover the figure

Zcash has two kinds of addresses. Transparent addresses work like Bitcoin: anyone can see who sent what to whom. Shielded addresses use zero-knowledge proofs, so the chain records that a valid payment happened without revealing the sender, the receiver or the amount.

What stays private

  • Who paid, and who was paid.
  • How much moved.
  • An optional encrypted memo that only the receiver can read.

What can still leak

  • Moving money between transparent and shielded addresses is visible at the boundary.
  • Timing: a payment that lands right after you click Top up says something to anyone watching both.
  • Your network: the server you connect to sees your IP address unless you hide it.

Why ZCode only accepts shielded payments

Every ZCode invoice uses a fresh shielded address with no transparent option, so nobody can accidentally pay in a way that's visible on-chain. It also means most exchanges can't pay us directly: move your ZEC into a shielded wallet first.

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