OneKey x Zcash (Long-Term, Recoverable, and Maintainable Zcash Hardware Wallet Support)

OneKey envisions a future where all cryptocurrency users can prioritise privacy and security without compromise. We aim to drive broader adoption of the Zcash network by providing the most robust, secure, and user-friendly solution for managing ZEC’s unique features.

This proposal delivers a resilient Zcash hardware wallet designed to prevent a repeat of historical Ledger failures. It provides unified, transparent and shielded ZEC support without firmware splitting, making maintenance and migration reliable.

Advanced recovery via SLIP-39 (not supported by Ledger) and optional passphrase protection ensure long-term fund safety.

By leveraging Near Intents and upstream-friendly design, Zcash gains cross-chain utility without vendor lock-in.

Please check the full proposal here: OneKey x Zcash (Long-Term, Recoverable, and Maintainable Zcash Hardware Wallet Support) · Issue #206 · ZcashCommunityGrants/zcashcommunitygrants · GitHub

Proposed Problem

Zcash hardware wallet support has been fragmented, fragile, and in some cases broken for long periods. In particular:

  • Ledger’s Zcash app has experienced prolonged maintenance issues, preventing users from safely migrating or managing assets, which has generated significant community dissatisfaction.

  • Current solutions often rely on firmware or app-level splitting, increasing complexity, UX friction, and long‑term maintenance risk.

  • Limited support for advanced Zcash features (shielded addresses, transparent/shielded coexistence, modern recovery standards) reduces user trust and adoption.

  • Existing wallets (e.g., single‑chain Zcash wallets) do not integrate well with cross‑chain workflows, limiting composability and liquidity access.

Proposed Solution

We propose a unified Zcash hardware wallet integration that:

  • Uses one wallet managing all asset portfolios, without firmware splitting.

  • Fully supports Zcash transparent and shielded address management within a single app.

  • Is compatible with passphrase and SLIP‑39 (which Ledger does not support).

  • Enables seamless interaction with Near Intents and other major chains to deliver a smoother cross‑chain swap experience that exceeds single‑chain Zcash wallets (e.g., Zashi).

  • Provides a maintainable, upstream‑friendly implementation aligned with the Zcash community’s long‑term roadmap and lessons learned from Ledger’s past failures.

Milestone Details

Milestone 1

Software Wallet Support, Cross-Chain Intents, and Release

User Stories:

  • As a multi-chain user, I want to manage and swap ZEC using the OneKey software wallet first, with a clear path to add hardware wallet signing later, so that I can choose the right security and convenience tradeoff as hardware support becomes available.

  • As a Zcash user, I want to use the app as a fully standalone software wallet without requiring hardware, so that I can safely manage, transact, and swap ZEC even before owning or pairing a hardware device.

  • As a Zcash user, I want a software wallet that is fully compatible with the hardware wallet, while remaining fully usable on its own, so that I can seamlessly migrate, pair, downgrade, or recover without asset lock-in or forced hardware dependency.

  • As a multi-chain user, I want to swap ZEC with other major assets via a smooth cross-chain flow, so that I can access liquidity without leaving my wallet.

  • As a Zcash community member, I want this implementation to be maintainable and upstream-friendly, so that it does not repeat past Ledger failures.

  • As an ecosystem developer, I want reusable components or documentation, so that Zcash wallet support can improve across the ecosystem.

  • As a Zcash community member, I want this implementation to avoid firmware splitting and fragile vendor-specific dependencies, so that Zcash users never face asset migration failures like those caused by Ledger’s long-broken Zcash support

Deliverables:

  • Standalone software wallet support for Zcash (transparent + shielded), built on the same core logic as the hardware wallet, but fully usable without any hardware device.

  • Seamless pairing and migration flows between software and hardware wallets, using a single unified wallet design without firmware splitting, enabling one wallet to manage all asset portfolios.

  • Integration with Near Intents and existing cross-chain swap infrastructure for the software wallet, with shared core logic and signing interfaces designed to support hardware wallet signing in Milestone 3.

  • End-to-end ZEC cross-chain swap flows secured by software wallet.

  • Public documentation, integration guides, and upstream-ready code contributions.

  • Final QA, external security review, and production release.

Acceptance Criteria:

  • Users can manage and transact ZEC using software wallets.

  • Users can complete at least one ZEC → non-ZEC cross-chain swap using the software wallet signing flow.

  • No critical issues are reported during final testing and audit.

  • Documentation and code are accepted or actively reviewed upstream by relevant ecosystem maintainers.

  • Users can create, back up, recover, and use ZEC entirely within the software wallet, without pairing or owning a hardware device.

Milestone 2

Advanced Recovery, UX, and Security Hardening

User Stories:

  • As a long-term Zcash holder, I want SLIP-39 recovery support, so that I can use social or multi-share backups instead of a single fragile seed.

  • As a power user, I want optional passphrase compatibility across both software and hardware wallets, so that I can add an additional security layer not available in existing Ledger-based Zcash solutions.

  • As a non-technical user, I want clear UX separation between transparent and shielded assets, so that I understand what I am managing without learning protocol details.

Deliverables:

  • Full SLIP-39 implementation and recovery flow on hardware and companion software.

  • Passphrase support is compatible with existing multi-chain wallet behaviour.

  • Improved UX flows for transparent vs. shielded balances and transactions.

  • Security hardening, code review, and internal audits focused on shielded transaction logic.

Acceptance Criteria:

  • Users can successfully recover a Zcash wallet using SLIP-39 shares.

  • Passphrase-protected wallets behave consistently across supported chains, including Zcash.

  • UX testing confirms users can distinguish and manage transparent and shielded assets without errors.

Milestone 3

Zcash Hardware Wallet Support

User Stories:

  • As a Zcash user, I want to securely store and manage my ZEC on a hardware wallet, so that my funds are protected from software-only attack vectors.

  • As a Zcash user, I want to manage both transparent and shielded addresses in one wallet, so that I do not need to rely on multiple tools or risky migrations.

  • As a security-conscious user, I want my Zcash keys to be derived from a single unified wallet without firmware splitting, so that long-term maintenance risk is minimised and future Zcash users are not exposed to migration failures seen in past Ledger support breakdowns.

Deliverables:

  • OneKey hardware wallet firmware (OneKey Pro ) support for Zcash.

  • Transparent address generation, balance display, and transaction signing.

  • Shielded address (Sapling/Orchard) creation and shielded transaction signing.

  • Companion software support for viewing balances and transaction history.

Acceptance Criteria:

  • Users can create, receive, and spend ZEC from both transparent and shielded addresses using the OneKey hardware wallets (model: OneKey Pro)

  • No blocking issues for asset migration or recovery are present.

  • Independent testers can complete end-to-end Zcash transactions without software-only key exposure.

Total Budget: $400,000

Why This Will Not Repeat Ledger’s Zcash

Dimension Ledger (Historical Reality) Our Approach (OneKey / 1K) Why This Matters
Core Architecture Per-chain apps No firmware splitting; one unified wallet manages all asset portfolios Eliminates single-chain isolation and long-term abandonment risk
Zcash Maintenance History Zcash support was broken for long periods, blocking fund migration and causing strong community backlash Zcash shares the same wallet core, release cycle, and infra as major chains Zcash cannot silently fall into an unmaintained state
Asset Migration Risk When the Zcash app breaks, users are effectively locked App works as a standalone software wallet, hardware is optional Assets remain accessible even if hardware support is unavailable
SLIP-39 Recovery Not supported and not realistically implementable Native SLIP-39 support Enables multi-share and social recovery; reduces single-seed failure
Transparent / Shielded UX Fragile and fragmented support Unified management of transparent and shielded addresses in one app Reduces user error and reliance on multiple tools
Software Wallet Independence Heavy dependency on hardware Fully functional software wallet without hardware Removes hardware as a systemic single point of failure
Cross-Chain Capability Single-chain mindset Built on Near Intents + multiple major chains Enables smoother cross-chain swaps than single-chain wallets
UX & Feature Evolution Chain-by-chain updates, slow iteration Shared UX and infra across chains Zcash benefits from ongoing multi-chain UX improvements
Ecosystem Alignment Vendor-specific, hard to upstream Modular, upstream-friendly components and documentation Reduces ecosystem dependency on any single vendor
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