Zcash is a privacy-focused anonymous cryptocurrency that is known to be the first practical and widespread implementation of ZK-SNARKs, or Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.
The applicability of Zcash extends beyond the Zcash network, as the Zcash ZK-SNARKs implementation can be integrated into other public blockchains. In an interview with Binary District, Zcash CEO Zooko Wilcox stated that public blockchain networks like Ethereum can integrate Zcash to process private Zcash transactions on the Ethereum network.
“The obvious thing to do is make a Zcash-like cash token on top of Ethereum. We call such a thing a ‘ZoE’, which is short for ‘Zcash-on-Ethereum’. We contributed some code for a ZoE. I’m kind of surprised that I haven’t seen any such projects being announced yet. But beyond private cash, there are many other potential applications of zk-SNARKs in Ethereum, such as identity and credentials, voting and maybe even scalability improvements,” said Wilcox.
Using a technology called “Shielded Address,” the Zcash network is capable of processing private transactions that eliminates any information about the sender, receiver, and amount transferred in transactions.
“The advantage of using Zcash today is that if you use the shielded addresses, you get stronger security — security protected by math — than any currently-available alternative,” Wilcox added.
As an investment, Zcash has large liquidity, and is listed on many of the world’s largest cryptocurrency exchanges including Binance, Huobi, Bithumb, Korbit, and OKEx. It is noteworthy that Zcash is listed on Korbit and Bithumb because South Korean cryptocurrency exchanges are very cautious in integrating new cryptocurrencies. Bithumb only has 12 cryptocurrencies it supports, and Korbit has less than 10.
Zcash also has the backing of Barry Silbert and Digital Currency Group, arguably the most influential investment firm in the cryptocurrency sector. JPMorgan, the $380 billion banking giant, has partnered with Zcash to implement its technology onto the Quorum blockchain. Silbert noted that this partnership along with interest in Zcash by public blockchains by Ethereum will lead to the rapid growth of Zcash.
“For example, if ZEC were to capture just 1 percent of the market for offshore wealth, its price could reach nearly $6,300 per coin–more than 14 times its January 24, 2018 market price. Moreover, if ZEC were to capture 10 percent of the market for offshore wealth, its price could become more than 140 times its current value,” read a report from Grayscale Investments, an investment arm of DCG.
Grayscale Investments researchers emphasized that Zcash can serve the global offshore banking market better than other major cryptocurrencies like bitcoin and Ethereum because of its privacy measures and ability to process anonymous transactions in an efficient manner.
Overall, given the support of a large investment firm in Digital CUrrency Group, and the support from the Ethereum community, in the long-term, Zcash has the potential to grow on par with other anonymous cryptocurrencies like Dash and Monero, especially of Ethereum adopts Zcash as a major privacy enhancement and solution.