The creators of Zcash believe privacy coins will be a big part of the next iteration of the Internet.
Yesterday, Electric Coin Company, the organization behind the Zcash privacy currency, outlined its official roadmap for the next three years. Within hours, the price of Zcash rose from $147 to $189, an increase of 28.6%.
The privacy-focused organization said in a post blog post that will launch an official ECC portfolio in 2022, before moving Zcash from a working proof-of-participation consensus mechanism to a more eco-friendly evidence-of-participation model in the next three years.
Electric Coin Company says it wants Zcash to be a key player in the emergence of Web 3.0 – a vision in which data is interconnected in a totally decentralized way, giving each user their own sovereign slice of the web.
In society’s collective vision of the future decentralized web, people will have full control over their information; ECC believes that privacy will be a big part of the structure of this next iteration.
Privacy Coins: A Primer.
Zcash and his main rival, Monero, are examples of privacy coins. Using cryptographic techniques, they obscure identifying information such as addresses and transaction amounts from prying eyes.
Currency uses a cryptographic technique called zero-knowledge proofs, which allows you to make transactions without specifying any details about the transactions in question other than the fact that they are legitimate. While Monero only allows private transactions, Zcash also allows public transactions.
Zcash was released on October 28, 2016, two years after Monero. It was originally based on the Bitcoin code base and, like Bitcoin, its supply is limited to 21 million coins. Today, Zcash has a market capitalization of about $2.3 billion, about $2 billion less than Monero.
The day after it was launched, Zcash hit an all-time high of $5,941, although its price has since dropped. It hit a brief high of $880 on July 1, 2018, but spent most of the next two years trading well below $100.
Things picked up again this year. In mid-February, the price of Zcash hit $180 and hasn’t dropped below $100 since. On May 8, it set an annual high of $318 and fell again, but news of the new ECC script sent the price up this weekend.
The ECC Roadmap.
In the blog post, ECC said that the first step of its roadmap will be the launch of an official wallet in 2022. Through the wallet, the company can directly interact with Zcash users, enabling ECC to “Quickly implement new features that may or may not require protocol changes.”
The ECC also announced that the official portfolio code will be open source and that portfolio developers can expect to release a software development kit in the future.
ECC is also moving the blockchain from an energy-intensive proof-of-work consensus engine, where miners who have the most computing power validate the most transactions, to a proof-of-bet model, where miners who bet the most Zcash validate most transactions.
The transition to proof of participation will reduce Zcash’s carbon footprint and, the ECC hopes, will reduce the downward pressure on Zcash’s price. At the moment, most miners immediately pay off their Zcash earnings to pay the high energy bills that come with proof-of-work mining. With proof of betting, they won’t need it.
The last part of the ECC roadmap focuses on interoperability. As the company completes the transition to a proof of bet model, new opportunities for interoperability between chains will emerge, such as the use of the Cosmos interoperability network.
Clearly, the ECC expects Zcash to surpass its reputation as a privacy currency as more utility is added to it in the coming years.