Privacy coins make up an entire sector of the cryptocurrency industry. While Bitcoin’s initial intention was a currency free from interference, private, anonymous and secure, time has proven otherwise. Blockchain forensics resulted in an ability to track the flow of funds – and often discovering to whom those funds belong. As a result, numerous competitors seek to claim the title as top privacy coin. While Monero (XMR) is the coin of choice for dark web transactions, it is nowhere near claiming the crown. Relatively recent start-up Zcash is making a strong push, with the backing of notorious whistle-blower Edward Snowden. Once a contractor for the NSA, Snowden revealed many secret programs in use by United States agencies. A major proponent of data security, Snowden insists that Zcash (ZEC) is the only currency that truly protects user transaction data.
Zero Knowledge Proofs and Hard Forking Upgrades
While the Zcash blockchain absolutely allows for transparent transactions, it also offers a shielded form of transaction that avoids public scrutiny. These zero-knowledge proof avoid interaction between sender and receiver – and therefore eliminate another potential data breach. Everyone is inherently anonymous, but the transactions can still be validated through the use of a secret key.
The key provides no outside information, only information as to whether the transaction is valid or not valid. As such, the blockchain maintains a high level of integrity without providing enough information to track transactions from person to person. The use of a specific type of proof – zk-Snarks – facilitates this entire process. Ultimately, it’s a unique approach that varies greatly from the usual scrambling system used by other privacy coins.
Edward Snowden’s Endorsement
Active on a number of social media platforms, Edward Snowden is surprisingly willing to answer questions. Many followers will ask him questions on Twitter, and he has shown that he is willing to answer – at least on occasion. While involved in a conversation about privacy coins, Snowden chimed in with;
“Agree. Zcash’s privacy tech makes it the most interesting Bitcoin alternative. Bitcoin is great, but “if it’s not private, it’s not safe.”
Snowden is known as a brilliant cryptography professional, even outside of his NSA work. His tacit endorsement of Zcash is a major feather in their cap and may allow them to compete more directly with the likes of Dash (DASH) and Monero. As more money flows back into the cryptocurrency markets, it’s possible that Zcash may be able to ride that publicity to a more lofty spot in the top coins.
Article By: Adam Stone