520
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
$19.543,05
price
2.31253%
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

indu4.0 – The Digital Marketplace for the Manufacturing Industry

indu4.0 is a digital B2B marketplace for the manufacturing industry, aiming to make the bridge between supply and demand faster, more efficient, and cost-effective. The company behind it, Indu4.0 AG, operates from Lucerne, Switzerland. It has already succeeded in integrating numerous complex industrial products and services with a sophisticated filter system in a user-friendly platform. This indu4.0 review looks closely at one of the most ambitious projects seeking to establish a blockchain presence for the behemoth-sized manufacturing industry. Read on…

SpurDex – A Cross-Chain DEX Platform for Hassle-Free Trading

SpurDex is a cross-chain DEX platform that supports the hassle-free trading of digital assets. The platform aims to provide a decentralized, secure, and user-friendly experience for all its users. SpurDex aspires to establish a safe and secure environment for digital asset trading. What Is SpurDex? SpurDex is an easy-to-use cross-chain DEX platform allowing you to trade digital assets in a new manner. It utilizes smart contracts to facilitate the exchange of tokens between different chains. SpurDex wants to provide the…

Hami Network – The Next Level Launchpad for Investors and Project Owners

Hami Network, an all-in-one cryptocurrency platform, revealed its new investor-friendly launchpad helping projects gain more traction from their first day in the cryptosphere. Additionally, the project started the Seeding Round A for its HAMI token on August 19, ending on September 8. Investors can board the initiative or join the Seeding Round B on PinkSale from September 1 to September 14. This short Hami Network review looks closely at the project's new launchpad and features. Read on to learn more…

BC.Game – A Complete Casino and Sportsbook Experience

BC.Game is a crypto casino offering the widest variety of crypto deposits and withdrawals. The website features over 6,000 games, including BC Originals and house games. Most importantly, it operates as a casino and a sports book allowing users to play with crypto and fiat currencies. This BC.Game review dives deep into one of the most popular cryptocurrency casinos. Read more about its features, games, supported currencies, and payment methods! BC.Game in a Nutshell BC.Game launched in 2017 as a…

ZUNAVERSE NFT Marketplace – Discover, Collect and Sell NFTs

ZUNAVERSE is an NFT-centered platform on BNB Chain aiming to make non-fungible tokens (NFTs) more accessible to everyone. The project is developing rapidly and incorporating an NFT marketplace, a proprietary token (ZUNA), and a brand new NFT collection, the ZunaNauts. This short ZUNAVERSE review looks closely at one of the latest NFT marketplaces to enter the market. Read on to discover its many features and plans! ZUNAVERSE in a Nutshell ZUNAVERSE plans to rival the industry-leading NFT marketplace. To this…

LykaCoin – All-in-One Blockchain Ecosystem

LykaCoin is a multi-chain blockchain ecosystem similar to Polkadot and Avalanche but promising to be more competitive. Its goal is to add innovations, progressive views, and a different vision to the newly-built meta universe with the projects it will do and develop. Notably, it aims to attract them with zero gas fees and potentially unprecedented scalability. This LykaCoin review looks closer at one of the fastest developing blockchain projects in the industry. Read on to discover its features, tokenomics, and…

Decentraland – A Virtual Reality Platform Unleashing the Blockchain Potential

Since its inception, virtual reality has been a phenomenon. People have been fascinated by the idea of stepping into another world that humankind created. With Decentraland, this fascination has become a reality.  Decentraland is a popular virtual reality platform that allows users to create and experience anything they can imagine. Decentraland is also a cryptocurrency platform. Within the Decentraland ecosystem, users may buy goods, services, and real estate with the MANA token. The MANA token enables the project's founders to…

Chain Pet – A Play-to-Earn Ecosystem for an Enhanced Crypto Experience

Blockchain gaming is starting to take off, and Chain Pet is one of the games leading the charge. In this review, we'll look at Chain Pet's main features and how it sets itself apart from the competition. Chain Pet is a play-to-earn ecosystem that rewards players for their contributions. By upgrading, breeding, and combating their elves, players may construct their world. The elves obtained are all personal assets, so finding a partner is essential to help you get started. One…

LoserChick – A GameFi Crypto Platform Relying on Staking

LoserChick is a fun and addictive new game that allows players to catch and smash eggs for NFTs. In addition to providing many ways for players to earn, LoserChick also offers lower gas fees and higher transaction speeds.  Because of its relationship with Polygon, it's an excellent option for gamers seeking to spice up their day a little. This review will analyze LoserChick in detail, so be sure to check it out if you're interested in learning more. What is…

DeNations – A Global Play-to-Earn Crypto Experience

DeNations is a popular platform for gamers who want to get involved in the crypto market. Users can expand their nations, build civilizations, and earn rewards. The gaming industry is growing rapidly, and DeNations provides an excellent opportunity for gamers to get involved.  This review will analyze the main features of DeNations that appeal to crypto investors and gamers. What is DeNations? For those who like to earn prizes while having fun, DeNations can be an appealing platform. Each nation…