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Common questions about Z Protocol, organized by topic.

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General

What is Z? Z is the privacy platform for human and agentic on-chain action. It provides privacy applications including lending, borrowing, trading, stablecoins, yield infrastructure, and agent tools. How is Z related to Zcash? Z is powered by Zcash’s privacy technology and mining infrastructure through Zcash Satoshi Plus (ZSP) consensus. How is Z related to Core? Z’s consensus (ZSP) draws inspiration from Core’s Satoshi Plus model, operational since January 2023. Both UTXO and timelock features made this architecture compatible with ZEC. How is Z architected? Z is an independent protocol with its own consensus mechanism (ZSP), validator set, and token. Security derives from Zcash’s hashrate and staked ZEC. Z is not a rollup or layer. Who is behind Z? Z is led by Zed, an anonymous founder. Rich Rines (Core contributor) provides strategic input.

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Privacy

Is everything on Z private? Privacy varies by use case. Within the [ShieldedPool (MASP)(/docs/core-concepts/ShieldedPool-MASP), balances and transfers are fully shielded. DeFi operations use stealth addresses, which are visible but unlinkable to identity. Is Z “privacy by default”? No. Users choose when to shield transactions. Some operations are fully private; others are unlinkable but visible. How does Z handle regulatory compliance? Through selective disclosure. Viewing keys let account holders share transaction history with auditors or regulators. Privacy Pools enable users to prove fund legitimacy without revealing identity. How is Z’s privacy different from Monero? Zcash (and by extension Z) uses zero-knowledge proofs for cryptographic privacy, providing a mathematical guarantee. Monero relies on ring signatures and steganography, which can degrade under chain analysis. How is Z different from Aztec? Aztec requires developers to learn Noir (a new programming language). Z is EVM-compatible, so Solidity works. Z includes enshrined DeFi and a stablecoin system. Aztec is an L2 with bridge dependency.

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ZEC and Staking

Can I use Z without buying the Z token? Z is designed so that ZEC holders can access core applications without acquiring the Z token. Gas payments will accept ZEC via a Paymaster contract. The Z Token grants governance and yield enhancements through Dual Staking. How do I earn yield on ZEC? Three methods:
  1. Timelock ZEC on Zcash for Z token rewards (ZEC Staking)
  2. Bridge ZEC and stake for stZEC (Liquid Staking)
  3. Use stZEC as collateral on Z Lend
Does my ZEC leave my wallet with self-custodial staking? No. ZEC remains on Zcash, locked via timelock transactions you control. No bridge, wrapping, or custodian. Can ZEC miners participate? Yes. Miners include delegation metadata in blocks to vote for validators, earning Z token rewards without hardware changes.

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USDZ

What backs USDZ? Stablecoin reserves, 1:1. Every USDZ is fully backed by real stablecoins held in reserve. What is yUSDZ? The yield-bearing version of USDZ. yUSDZ uses a non-rebasing share price model where token balance remains constant while per-token value increases. Can USDZ lose its peg? USDZ is backed 1:1 by stablecoin reserves. Every USDZ in circulation has corresponding stablecoins locked in source chain vaults.

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Z Token

What is the Z token for? Gas payments, staking (one of ZSP’s three consensus legs), governance, and value capture. Revenue from the the Zcosystem accrues to Z token holders. What is the token supply? 1 billion, fixed.

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Technical

Is Z EVM-compatible? Yes. Solidity smart contracts work on Z. What consensus does Z use? Zcash Satoshi Plus (ZSP): a hybrid mechanism combining ZEC mining delegation, self-custodial ZEC staking, and Z token staking. How does the ZEC bridge work? ZEC enters Z via the Z Bridge. The goal is trust-minimized deposits directly into the ShieldedPool. Implementation details are in development.

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Zcosystem

Why are ZApps built in-house instead of funded externally? Privacy integration requires protocol-level access to the ShieldedPool (MASP) that external teams cannot achieve with the same depth. Vertical integration ensures revenue benefits the protocol. AI has reduced development costs for quality software. What about AI agents? Z is designed as infrastructure for AI agents. Z provides agent wallets (Shells), protocol-level hygiene via the MASP and stealth addresses, MCP integrations, and simulation environments.