Finance & economics  ·  Digital money

The Puzzle Behind the Veil

Equihash powers the mining; shielded transfers provide privacy. Now compatible pools can reuse one Equihash work stream across Zcash and Wcash—two separate chains, with separate rewards.

Local explainer  |  Digital money
October 20th 2026  ·  4 min read
A miner climbs a staircase from a computer toward a gold Zcash coin and a Wcash shield, in a watercolor illustration.
A miner climbs from a computer toward Zcash and Wcash.

Three different ideas can get tangled together: the puzzle miners solve, the privacy a transaction can use, and the way a pool submits work across networks. They sit at different layers of the system.

Equihash is the mining puzzle, not the privacy technology. Shielded transactions handle privacy; merged mining lets participating pools submit the same work to Zcash and Wcash while the chains remain independent.

Mining · Equihash

Miners search for valid Equihash proof-of-work solutions. The compatible Zcash/Wcash profile is Equihash (200,9).

Privacy · Shielded transfers

Shielded transactions provide privacy for transfers. That function is separate from the proof-of-work puzzle.

Merged mining · Pool layer

A compatible pool can reuse one Equihash work stream across both networks. Each chain checks its own target and pays its own rewards.

In this setup, Wcash remains a separate chain with its own state and rewards. Merged mining reuses participating pool work; it does not merge Zcash and Wcash into one ledger. Only pools that include the Wcash commitment contribute work to Wcash.

Read the technical sources