Expert Dispels Negative Rumors About the Unreliability of the Zcash Platform and ZEC Token

An analyst under the pseudonym juzy commented on widespread accusations against Zcash related to the so-called “trusted setup” issue. He explained that during the project’s existence there have been three generations of shielded pools: Sprout (2016), Sapling (2018), and Orchard (2022). Only the first two used a trusted setup, while the latest one, which already accounts for 25.2% of total issuance, completely abandoned this mechanism.

According to the expert, Sprout covers only 0.16% of circulation and was created by six participants. Sapling involved over 90 users, with a share of 4.39%. Juzy emphasized that the security of such systems is ensured as long as at least one participant destroys their keys after the “ceremony” — that alone is sufficient to make the network secure.

He added that even in a hypothetical case where all participants in the Sprout setup were dishonest, attackers would not be able to withdraw more tokens than are held in the pool. This is made possible by the turnstile mechanism, which tracks the inflows and outflows of funds. Thus, even the potential creation of “fake” coins would not cause any economic damage to the main network.

Juzy also noted that the Sprout pool has been effectively decommissioned, and its share is steadily declining. Most user activity is now concentrated in Orchard, which uses modern cryptography without trusted parameters and provides the highest level of privacy among all Zcash implementations.

According to the analyst, claims that the Zcash project and ZEC token are unsafe due to the “trusted setup” are unfounded. He stressed that the current network architecture demonstrates a high level of maturity and contains no cryptographic risks that could endanger privacy or token issuance.

See also: "Strategy raised another $715 million to replenish its bitcoin reserves"

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