327
views

Zcash Privacy Features: Can it Foster Faster Crypto Adoption

The global crypto adoption was recently approximated to be 5% of the worldwide population. However, privacy has been hindering the even faster adoption of crypto into the world.

Individuals, companies, and governments fear blockchains’ transparency since it means full exposure of private information. Zcash, however, offers privacy to every individual and company by keeping details of all transactions anonymous. What is Zcash, and how does it enhance privacy?

Zcash Overview

Zcash is a crypto asset that has majored in providing privacy for its users. Privacy for users is crucial since it ensures individuals’ freedom on the internet and when conducting transactions.

The platform was launched in 2016. Zcash has its base on bitcoin’s codebase, and therefore, shares similarities such as 21 million tokens. Zcash uses an algorithm called Zk SNARKS, which enhances the privacy of users in the blockchain.

Zcash is built on rigorous science by scientists from MIT, Technion, and other universities. The asset can be used as a medium of exchange, just like fiat currency. 

Zk SNARKS

Zk SNARKs acronym stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. Zk SNARKs is a proof protocol where one can prove certain information’s possession rights without revealing details.

Zk proofs give the prover can prove to the verifier that some piece of information presented is accurate. The prover will do this without necessarily revealing the source. The only thing necessary with the zero-knowledge proofs is the validity of news but not the data source. In zero-knowledge, therefore, an individual can prove a transaction without necessarily giving other details.

It’s effortless to verify the succinct zk proofs. It only takes a few milliseconds and proof lengths of just a few bytes even for broad statements. Earlier zk protocols had the prover and verifier communicate on a back and forth for several rounds. In the current non-interactive constructions, the proof is just a single message sent by the prover to the verifier.

Zk SNARKs in Zcash

In the crypto world, privacy is vital. However, many blockchains focus on transparency, thus do not honor traders’ privacy.

Zcash is solving the problems of privacy in the crypto world. The blockchain uses the zk SNARKs protocol to ensure the anonymity of transaction parties at all times. 

There are two different types of addresses applied in different blockchains:

  • Transparent Addresses – These addresses are parallel to the public addresses in bitcoin protocols, and they, therefore, function similarly. These open addresses interact with the transparent value pool during every transaction. The transparent value pool publicly reveals the transaction data allowing any node on the blockchain to see it. Zcash allows transparent transactions only to accommodate other cryptos, which focus on transparency than privacy.
  • Shielded Addresses – These addresses are protected or shielded from external viewers. The addresses encrypt transactions and verify transaction validity by using zk SNARKs.These kinds of addresses come with additional security and anonymity, unlike transparent addresses. 

Zcash entirely believes in privacy to ensure user freedom when completing their transactions. In cryptocurrencies with public blockchains, it is easy for anyone to get information transactions. In Zcash, however, getting such information is nearly impossible with the shielded addresses. 

Since Zcash uses two different addresses, it’s essential to know the different types of transactions in the Zcash blockchain and their anonymity degree. The following are the different types of Zcash transaction:

  • Transparent to transparent transactions that are entirely similar to bitcoins transactions. These transactions have zero privacy.
  • Transparent to shielded transactions are shielding operations breaking translation linkability. 
  • Shielded to transparent transactions are those that originate from a shielded address to the transparent addresses. 
  • Hybrid sales are those where both the sender address and recipient address are partially shielded.
  • Shielded to shielded transactions are entirely private and anonymous transactions.

Linkability in Zcash

Using shielded addresses allows users to break links between transactions, making them untraceable and anonymous. If, for example, 1 ZEC was sent every month between two transparent addresses, it would be easy for anyone to link the accounts. 

In Zcash, however, linking two transactions is made more difficult due to the shield transactions. Let’s imagine the same sale of 1 ZEC happens between two shielded addresses every month. Data on the deals is obfuscated, making it difficult to understand the relationship between the two shielded addresses. 

Notice, shielded transactions do not make linkability and traceability of the operations impossible. An excellent example of traceability issues in Zcash was evident in a Zcash community challenge where a user could trace a transaction. However, a report by the Zcash team gave insight into what happened. The time interval between each sale was so small that it could be easily identified. Therefore, the conclusion was that the traceability problem could be avoided if the user would increase the transaction time interval.

Benefits of Zcash Privacy Features

Zcash’s privacy features prove that more users will adopt crypto if privacy issues are addressed. Take, for example, attacks from criminals. The exposure of information to everyone in blockchains is a security threat to large crypto holders. Criminals can use the information on the blockchain to find their target and hack or attack them. Zk SNARKs, which do not give full details about transaction origin, will help curb the problem.

Untraceability is also core in crypto adoption. Although not entirely undetectable, the Zcash blockchain offers untraceable transactions for investors. A Cointelegraph report recently showed that 15% of Zcash sales are shielded in some way.

Privacy will be a benefit in crypto exchanges too. Currently, all information about a company’s exchange history is exposed in the blockchains. A seller is already in the know of the buyer’s financial position and can use it to their advantage. However, with Zcash privacy features, details about past transactions remain private. This means both the buyer and seller are on equal ground when completing the trade.

Blockchains act as big information databases that store information permanently. This kind of information may include government records on past dealings or plans. It may also include individual information on their history. Large companies can decide to use blockchains to store information about their past, present, and future dealings. Imagine all this information being available to anyone in public. Imagine stealing information about the next product from a company. This can be disastrous and will lead to losses, especially from small startups. However, with Zcash privacy features, only authorized personnel, e.g., the auditor and lawyers will access information about a company or government. 

That means the protection of the company’s future products and thus ensures the growth of the company. Also, high government clearance will only be released to authorized personnel, thus enhancing better service provision without external interference.  

Parting Shot

Zcash privacy algorithm Zk SNARKS are already enhancing privacy for individual holders. These algorithms give zero background information about individuals, government, and companies. 

Bitcoin live price
Btc
Bitcoin
$30.479
price
1.68374%
price change
BUY NOW

There has been growth in the number of people using Zcash privacy protocols, showing how vital privacy is for individuals. Zcash has been able to grow because of the privacy advantages it offers. Privacy, therefore, essential for the general adoption of the crypto world. Zcash has proven that confidentiality is the future of crypto adoption. To foster faster adoption of cryptos, worldwide privacy features have to be boosted in the crypto world.

Stay up to date with our latest articles

More posts

Viubank: Earn Interest with Highest Crypto APY Through Fixed Deposit Receipt

An innovative new financial service called Viubank offers customers a way to earn interest on their long-term savings accounts. The concept depends on the cooperation with ELG bank, which brings together traditional and crypto-based financial expertise. About ViuBank Viubank is an innovative banking initiative promising simple access to fixed deposits that pay set interest rates. Depending on your preference, you can get daily, weekly, or monthly benefits. Thanks to its Vanuatu banking license, every depositor can open an account on…

RodeoCoin – Supporting the Western Lifestyle through Crypto

RodeoCoin is a hyper-deflationary token running on Binance Smart Chain seeking to reward its active users with BUSD reflection rewards. The project’s ultimate goal is to build a Community Wallet supporting the western lifestyle and community-oriented initiatives, including promoting talents in art, sports, and music. This short RodeoCoin review looks closely at one of the most recent projects to surface in the market. Read on to discover its features, tokenomics, and roadmap! What is RodeoCoin? RodeoCoin evolved from a group…

Shazu – Channeling the Ninja Abilities within NFT Collectors and Crypto Enthusiasts

Shazu is a community-driven project featuring a deflationary token, SHAZU, and a collection of unique Ninja NFTs. Its goal is to help users increase their financial freedom through reflection rewards, staking opportunities, and digital collectibles. This short Shazu review looks closely at one of the latest projects to surface in the cryptosphere. What is Shazu? Shazu is a project seeking to grow through its community while rewarding its members at the same time. It features a deflationary token on the…

WinWinCoins Will Make Crypto Trading More Accessible for Everyone

WinWinCoins is an innovative blockchain project providing a next-gen AI robot trading solution to help investors increase their profits. Its goal is to build an advanced, democratic platform easily accessible to everyone. This way, even newbie traders with little market knowledge can have a positive experience in cryptocurrencies. The WinWinCoins team believes it can accelerate crypto adoption by providing legitimate trading tools available to everyone. To this end, its trading bot could help eliminate losses and increase access to profitable…

SafeSwap Deploys on the Polygon Network to Allow the Farming and Staking of SSGTX

SafeSwap, a decentralized crypto exchange platform, has recently deployed on Polygon, previously known as the Matic Network, a scaling solution for public blockchain networks.   The integration of the Polygon chain by SafeSwap aims to revolutionize the DeFi industry by allowing the farming and staking of SafeSwap's token, SSGTX. The partnership enables users to exchange information without losing ownership or control in the staking and trading industry.  The main objective of SafeSwap is to empower traders and liquidity providers with an easy-to-access financial…

API Inu – A Blockchain Service Suite Joining the Meme Coin Hype

The meme coin hype is leading to the creation of more creative projects revolving around this type of cryptocurrency. In this context, API Inu is one of the latest examples, with a combination of blockchain data services and a meme token. Using TradingView's professional charting libraries, the project wants to provide simple indicators for beginner traders. Furthermore, the team wants its community to enjoy access to essential data like liquidity, trading volume, risk exposure, and fear vs. greed indicators.  API…

Ragdoll Cat NFT – A New Decentralized Project to Help Cats in Need

As the blockchain market grows, we learn more and more about how this technology can influence our daily lives. Ragdoll Cat NFT is a new project that puts together the interest for crypto, decentralized communities, and cats. In the following sections, we wish to report, in a neutral way, all the main features of this new initiative. After describing the ecosystem designed by the team, we’ll include some of the future developments that we should expect from the project. About…

Tiny Colony Review – The First-Ever Expansive Pixelated Tinyverse

Tiny Colony is a pixelated ecosystem of games, events, and experiences built on Solana that allows users to play without requiring NFTs. It features the first-ever construction and management blockchain game and benefits from the backing of iLogos, the prominent developers of Angry Birds 2, and regular partners of Disney, Ubisoft, EA, Rovio, and DreamWorks. The project is currently in full swing after striking partnerships with Fractal Marketplace, Twitch creator Justin Kan, and popular YouTuber iJustine. Furthermore, the game raised…

Rocket Global – A Next-Gen Hybrid Crypto Exchange

The market of crypto exchanges is crowded, and new initiatives in this niche always need to develop something innovative to have a chance of survival. The sector is still far from reaching a mature phase, and creative teams have an opportunity to improve the current inefficiencies of the market. Today we will talk about Rocket Global and impartially review its main features. Our short overview wishes to highlight the key characteristics of the project to let the readers form an…

C4G3 – A Project Featuring the First Decentralized Meme Index

Meme tokens have had immense success after launching on the market as a joke with Dogecoin ($DOGE). This niche gradually became a serious business as the coins’ market cap grew exponentially. The C4G3 Meme Index is the world's first digital asset index designed to track the performance of meme tokens within the cryptocurrency industry. Our review will look closely into this new project and provide the readers with the main details shared by the founding team. About C4G3 Creating an…