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Though Bitcoin is often seen as an anonymous currency, it is in fact pseudonymous. This is owed to the radical transparency of Bitcoin’s blockchain, which records every transaction on a public ledger. Zcash can be used in a transparent way like Bitcoin, or in a fully anonymous private mode by optional enablement of “shielding” transactions. These private transactions are possible because of Zcash’s zero-knowledge proof mechanism called zk-SNARK.
