Today, we’re proud to announce that Poolin is supporting Shielded Coinbase, a feature of the Zcash Heartwood network upgrade. At Poolin, we strive to provide the greatest level of privacy and security for miners that have chosen to place their trust in us.
Overview of Zcash Privacy
Zcash supports two main types of addresses: shielded (z-addresses which start with “z”) and transparent (t-addresses which start with “t”). Shielded addresses use zero-knowledge proofs to allow transaction data to be encrypted but remain verifiable by network nodes.
Zcash shielded addresses provide stronger privacy protection than with any other cryptocurrency today. A transaction between two shielded addresses is only viewable between the sender and recipient. The addresses, transaction amount and the memo field are shielded from the public.
Shielded Coinbase enables miners to mine Zcash directly to a shielded address. This means that Zcash never has to leave the shielded pool and offers strong protection against data leakage.
In addition to increased privacy, a benefit of shielded coinbase is that miners have the option of getting their mining rewards issued immediately into a z-address, instead of the standard 100 block maturity time with transparent addresses.
Shielded coinbase has been on the Zcash roadmap since the project’s inception almost four years ago. The massive performance optimizations from Zcash Sapling make shielded coinbase possible.