Bitcoin, which had its genesis block mined in 2009, was the first digital currency to scale. While many early adopters took interest in bitcoin because of its promise of privacy, the digital currency failed to provide this benefit, as interested parties can examine the transactions recorded on bitcoin’s blockchain to get a sense of exactly what a person or entity has purchased.
In the years following bitcoin’s release, developers have created privacy-oriented digital currencies including Dash and Monero. Both of these use innovative technologies to help increase the chances of their users remaining anonymous.
Dash leverages a technique called "CoinJoin", in which several users put funds into the same transaction in order to increase the chances of privacy. Alternatively, Monero harnesses ring signatures to reduce the chance of detection.
Both of these cryptocurrencies have made great progress toward realizing the goal of anonymous transactions, and Monero has received widespread adoption in the dark web.
However, Zcash’s technology seemingly gives users the ability to enjoy an even greater level of privacy. By allowing users to remain anonymous, Zcash can provide them with greater fungibility.
This is because many digital currency transactions rely on the use of private keys – strings of letters and numbers that identify a user. An address can become attached to several transactions over time, making it easy for friends, family, marketers or even government authorities to learn more about a person’s purchasing trends.
And if a user’s private key is attached to certain transactions, some parties may refuse to accept his or her money. This is where Zcash comes in.
Your new post is loading...
