Cosmos: Zcash does not enforce privacy by default; its design strikes a balance more skewed towards auditable.

On Dec. 10, SlowMist founder Wu Xie commented on Arkham’s analysis of Zcash (ZEC)—titled “More Than Half of Zcash Transactions Can Be Traced”—noting that it’s unsurprising a high percentage of Zcash transactions are traceable. Zcash has operated this way since the previous privacy coin hype cycle: it doesn’t enforce privacy by default; instead, users choose their transaction type. For example, addresses starting with “z” support shielded privacy transactions, while those starting with “t” are transparent and traceable. This design makes Zcash more acceptable to regulators than privacy coins like Monero (XMR), which enforces privacy by default. Currently, most Zcash addresses on mainstream platforms start with “t”—a clear sign the number of people who actually prioritize privacy is extremely small. Catering to regulatory requirements is a key path forward for platforms. Compared to Monero’s hardcore approach, Zcash’s privacy framework strikes a better balance, and it may follow a broader trajectory ahead.