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ZCash Funding Overhaul: Buterin’s Bold Impact Strategy

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Ethereum co-founder Vitalik Buterin has ignited discussions about the future of privacy-oriented cryptocurrencies, particularly focusing on ZCash and its potential role in the evolving landscape of digital transactions. His recent insights propose a nuanced approach, envisioning the tech-tool as a beacon of conservatism in technology, unwavering in its commitment to privacy, while simultaneously exploring experimental economic models.

Central to Buterin’s vision is the integration of off-chain-governed rounds for development funding, a departure from traditional financing mechanisms. These rounds could feature elements such as yearly issuances or anonymous voting systems, all underpinned by decentralized governance principles. Such an approach reflects the essence of blockchain technology, emphasizing community-driven decision-making and consensus.

At the heart of ZCash’s privacy features lies zk-SNARK technology, enabling users to conduct transactions with enhanced confidentiality. However, this privacy comes at a computational cost, limiting widespread adoption on mobile devices. The development of lighter zk-SNARK protocols holds the key to expanding the technology’s accessibility, potentially ushering in an era of mobile wallet support and broader usage.

Incentivizing ZCash Usage

While ZCash’s advanced privacy features cater to a niche market, there is considerable potential for broader adoption, especially in contexts where confidentiality is paramount, such as high-value transactions or in politically unstable regions. To capitalize on this potential, ZCash must effectively communicate the advantages of privacy-enhanced transactions and incentivize their usage through tailored marketing strategies and rewards programs.

Buterin’s proposals inject fresh perspectives into the discourse surrounding privacy-oriented cryptocurrencies, suggesting a paradigm shift in the way these assets are developed and utilized. By embracing innovation in both technology and economics, ZCash has the opportunity to redefine the boundaries of economic privacy in the digital age.

As ZCash stands poised at the forefront of this debate, it carries the torch for privacy-centric cryptocurrencies, offering a glimpse into a future where online transactions are secure and discreet. With thought leaders like Buterin shaping its trajectory, ZCash could emerge as a trailblazer, setting new standards for privacy and security in the realm of digital finance.

Monero Fan Touts ‘Best Ad’ After Binance Delisting Move

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The spotlight is now on the privacy-centric cryptocurrency Monero [XMR], as major crypto exchanges, including Binance, opt for delisting after months of deliberation. This decision follows a broader trend of regulatory scrutiny and concerns over the potential misuse of privacy coins, which are specifically designed to enhance anonymity by concealing transaction details, including involved parties and amounts.

Recently, OKX, another significant player in the cryptocurrency exchange arena, declared its intention to delist 20 spot trading pairs in the upcoming year. Notably, this delisting encompasses three of the largest privacy-focused cryptocurrencies: Monero’s XMR, Zcash [ZEC], and Dash [DASH]. OKX has already halted deposits for these assets, and trading is slated to cease on January 5.

The announcement, issued last week, does not explicitly specify the reasons for delisting beyond stating that it is “based on feedback from users” and that the tokens “do not fulfill our listing criteria.”

Monero
Monero Fan Touts 'Best Ad' After Binance Delisting Move 2

The sequence of delisting decisions by leading crypto exchanges has left privacy advocates disheartened, perceiving these actions as yielding to regulatory pressures. Nikita Zhavoronkov, the lead developer of Blockchair, took a defiant stance by characterizing Binance’s announcement of delisting XMR as “the best Monero ad imaginable.” Binance had asserted that privacy coins like XMR, which resist compliance, are likely candidates for delisting in the coming month.

Monero, Zcash Debate Intensify

Blockchains should either be transparent or fully private; there’s no in-between. Just like Bitcoin miners censor OFAC addresses, Zcash miners may decide to censor all shielded transfers and still be rewarded. Monero miners don’t have this option.

Zhavoronkov presented a clear perspective, emphasizing that blockchains should either offer full transparency or complete privacy, with no middle ground. Drawing parallels, he noted that while Bitcoin miners might censor OFAC addresses, Zcash miners could potentially censor all shielded transfers and still receive rewards. In contrast, Monero miners lack this option.

Responding to a user’s comment on Monero’s privacy not being entirely foolproof, Zhavoronkov acknowledged the theoretical aspect but defended Monero’s default privacy feature. He stated that while users could reveal transactions using a private view key, the default setting of the privacy coin is private, distinguishing it from other cryptocurrencies. The nuanced debate underscores the complex interplay between technology, user behavior, and the evolving landscape of privacy-focused cryptocurrencies.

Bitcoin Facilitates 59% of Digital Asset Transactions on Darknet; Zcash is Responsible for 1%

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Bitcoin has received a lot of support in the past couple of months. The largest crypto asset exhibited commendable resilience to recover from its losses on 12th-13th March. The asset currently consolidates above $9000 and the community was expecting it to cross $10,000 before the halving.

However, taking the attention away from its market performance, according to a recent report released by Rand Corporation, Bitcoin continued to be the most used crypto asset in the illicit dark web marketplace.

The study was commissioned in 2019 by the Electric Coin Company, the Parent organization of Zcash privacy coin. It was indicated that Zooko Wilcox, founder of Zcash did not approve of the common sentiment that Zcash is only tagged along with criminals, and he hired Rand Corporation to conduct an extensive study. The report which was released on May 6th stated that Zcash had a minor presence on the dark web and according to the think tank, the report mentioned,

“Zcash is seen as a less attractive option to dark web users and is used less often compared to other cryptocurrencies, particularly Bitcoin and Monero.”

Rand corporation had highlighted that the study was conducted on the basis of three areas-money laundering, trade in illicit goods and services, and terrorism financing.

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From the above distribution chart, it can be observed that Bitcoin/Bitcoin Cash is responsible for 59 percent of the illicit transactions, followed by Monero at 27 percent of the trade, 12 percent accept in Ethereum, and around 1 percent are Litecoin transactions.

Zcash was utilized in less than 1 percent of the illicit transactions and further examination revealed that a majority of the Zcash mentioned came from just three sellers, The Shop, Skyscraper, and Cyberzen.

The report concluded,

“Bitcoin is still perceived to be the dominant cryptocurrency for illicit or criminal activities on the dark web.”

Past Report Conflict

Although the report completely pointed the finger at Bitcoin, emphasizing its involvement with the dark web marketplaces, some of the findings contradicted with past reports.

In 2018, a report was released by Europol that indicated that Zcash is particularly popular and preferred by ISIS, and towards the end of 2018, Chainalysis suggested a similar sentiment, underling the increasing popularity of Zcash on the darknet.

However, it is imperative to take note that whether Bitcoin or Zcash is more popular, the collective hike in involvement has been noticed in the overall digital asset space.

Bitcoin’s popularity in the darknet may have remained since it was the first digital asset and a central part of Silk Road back in 2011.