Privacy Guide

ZcashBridge supports both shielded and transparent ZEC addresses, giving you control over your privacy preferences.

Understanding Zcash Address Types

Zcash offers two types of addresses, each with different privacy characteristics.

Shielded Addresses (z-addresses)

Overview

Shielded addresses provide maximum privacy through zero-knowledge proofs and encryption.

Address Formats

• Sapling: zs1... (current standard)

• Sprout: z1... (legacy, still supported)

Privacy Features

Encrypted Transactions:

• Transaction amounts are encrypted

• Sender and receiver addresses are encrypted

• Transaction data is encrypted on blockchain

Zero-Knowledge Proofs:

• Verification without revealing details

• Mathematical proofs ensure validity

• No information leakage

Private Metadata:

• Memo fields are encrypted

• No transaction graph analysis possible

• Complete privacy protection

Use Cases

• Maximum Privacy: When privacy is paramount

• Personal Transactions: Private personal transfers

• Business Confidentiality: Confidential business transactions

• Regulatory Compliance: When privacy is legally required

Benefits

• Complete transaction privacy

• No transaction history visible

• Protection from surveillance

• Financial privacy

Transparent Addresses (t-addresses)

Overview

Transparent addresses work similarly to Bitcoin addresses, with transactions visible on the blockchain.

Address Formats

• Sapling: t1... (current standard)

• Legacy: t3... (older format)

Transparency Features

Public Transactions:

• All transactions visible on blockchain

• Amounts are public

• Sender and receiver are public

• Transaction history is traceable

Blockchain Analysis:

• Transaction graph analysis possible

• Address clustering possible

• Flow analysis possible

Use Cases

• Transparency Requirements: When transparency is needed

• Compliance: Regulatory compliance requirements

• Public Records: Public transaction records

• Familiarity: Bitcoin-like functionality

Benefits

• Familiar Bitcoin-like addresses

• Public verification possible

• Compliance-friendly

• Easy integration

Privacy Comparison

Shielded vs Transparent

Feature	Shielded	Transparent
Transaction Privacy	✅ Encrypted	❌ Public
Amount Privacy	✅ Private	❌ Public
Sender Privacy	✅ Private	❌ Public
Receiver Privacy	✅ Private	❌ Public
Blockchain Analysis	✅ Protected	❌ Possible
Compliance	⚠️ May require disclosure	✅ Public
Verification	✅ Zero-knowledge	✅ Public

Privacy Levels

Shielded Addresses:

• Privacy Level: Maximum

• Surveillance Resistance: High

• Analysis Resistance: Complete

• Recommended For: Privacy-sensitive use cases

Transparent Addresses:

• Privacy Level: None (Bitcoin-like)

• Surveillance Resistance: None

• Analysis Resistance: None

• Recommended For: Compliance and transparency needs

Choosing the Right Address

When to Use Shielded Addresses

Choose shielded addresses when:

• Privacy is Important: You value financial privacy

• Personal Use: Personal financial transactions

• Business Confidentiality: Confidential business needs

• Regulatory Privacy: Privacy is legally required

• Surveillance Resistance: Protection from surveillance

When to Use Transparent Addresses

Choose transparent addresses when:

• Transparency Required: Transparency is needed

• Compliance: Regulatory compliance requires transparency

• Public Records: Public transaction records needed

• Familiarity: Prefer Bitcoin-like addresses

• Integration: Easier integration with some systems

Privacy Best Practices

For Shielded Addresses

1

Use consistently

Use shielded addresses consistently.

2

Avoid mixing

Don't mix with transparent addresses unnecessarily.

3

Protect keys

Keep private keys secure.

4

Verify addresses

Always verify shielded addresses before sending.

5

Understand limits

Understand any regulatory or operational limits that may apply.

For Transparent Addresses

1

Understand transparency

Understand that transactions are public.

2

Address reuse

Consider the implications of address reuse for privacy.

3

Transaction analysis

Be aware that transactions can be analyzed and traced.

4

Compliance

Ensure compliance with applicable regulations.

5

Verification

Use public verification when needed.

Compliance Considerations

Shielded Addresses

• Regulatory Requirements: May require disclosure in some jurisdictions

• Travel Rule: May require additional compliance steps

• Reporting: May need to report transactions

• Verification: Zero-knowledge proofs enable verification without revealing transaction details

Transparent Addresses

• Public Records: Transactions are public records

• Compliance Friendly: Easier compliance verification

• Reporting: Easier transaction reporting

• Audit Trail: Complete audit trail available

Technical Details

Shielded Address Technology

• Zero-Knowledge Proofs: zk-SNARKs technology

• Encryption: Strong encryption of transaction data

• Verification: Mathematical verification without revealing data

• Efficiency: Efficient proof generation and verification

Transparent Address Technology

• Public Key Cryptography: Standard public key cryptography

• Blockchain Visibility: All data visible on blockchain

• Standard Format: Standard Zcash address format

• Compatibility: Compatible with standard tools

Migration Between Address Types

Shielded to Transparent

• Possible: Can send from shielded to transparent

• Privacy Impact: Reduces privacy level

• Consider Carefully: Consider privacy implications

• One-Way: Privacy cannot be restored for that on-chain trace

Transparent to Shielded

• Possible: Can send from transparent to shielded

• Privacy Improvement: Improves privacy

• Recommended: Recommended for privacy-sensitive use

• Clean Start: Creates clean privacy boundary

FAQ

Can I use both address types?

Yes, you can use both shielded and transparent addresses. Choose based on your needs for each transaction.

Is shielded address privacy absolute?

Shielded addresses provide strong privacy protection, but consider:

• Regulatory requirements

• Key security

• Operational security

• Compliance needs

Can transparent addresses be traced?

Yes, transparent addresses can be analyzed and traced on the blockchain, similar to Bitcoin addresses.

Which address type should I use?

Choose based on your privacy needs, compliance requirements, and use case. Shielded for privacy, transparent for compliance.

Additional Resources

• Getting Started - Learn how to use addresses

• Security - Security best practices

• FAQ - Common privacy questions

• Supported Networks - Network information

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Privacy is your choice. ZcashBridge supports both address types, giving you control over your privacy preferences.