Core Foundation Brings EVM Scaling to Zcash via Z Protocol

• Z Protocol is a new EVM-compatible Layer 1 blockchain designed as a scaling layer for the privacy-focused Zcash network.
• The initiative utilizes the Satoshi Plus consensus model, enabling Zcash miners and stakers to participate in securing the network.
• A mainnet launch is projected for the second half of 2026, featuring a suite of native financial applications including a private stablecoin.

Expanding the Satoshi Plus Model

The team behind the Bitcoin scaling solution Core has announced the launch of its first "franchise protocol," known as Z Protocol. This new network aims to bring Ethereum Virtual Machine (EVM) compatibility to the Zcash ecosystem, a privacy-centric fork of Bitcoin. By leveraging the Satoshi Plus consensus mechanism, the project allows Zcash miners and stakers to vote for validators, mirroring how Core utilizes Bitcoin mining power. Since its launch in January 2023, the Core blockchain has successfully integrated approximately 90% of Bitcoin's hash power without experiencing any consensus halts.

Native Privacy Applications and Ecosystem

Z Protocol is designed to address the lack of an application layer within the current Zcash environment. Kieran Dennis, co-founder of Z, noted that while other privacy layers exist, a lack of EVM compatibility has historically hindered developer adoption. To kickstart the ecosystem, the team is developing several vertically integrated financial primitives:

• Z Trade: A private decentralized trading venue.
• Z Lend: A protocol for private lending and borrowing.
• USDZ: A native private stablecoin.
• yUSDZ: A yield-bearing savings token.

Under a licensing agreement with the Core Foundation, a portion of the transaction fees generated by Z will be directed back to Core, and CORE token holders are expected to receive preferential access or airdrops for Z tokens at launch.

Future-Proofing for AI Agents

A core mission of the Z Protocol is to provide a secure environment for AI agents. Dennis predicts that automated agents will eventually transact at frequencies significantly higher than humans, making them vulnerable to data surveillance and metadata leaks. The protocol aims to provide the necessary infrastructure for these agents to operate with high token efficiency through command-line interfaces rather than traditional graphical UI. This focus on privacy is viewed as a necessary cornerstone for the long-term adoption of AI-focused protocols in the blockchain space.