In the next six months, a special update to the Zcash cryptocurrency will be developed, introducing a token compatible with the Ethereum blockchain.
Vice President of Marketing and Business Development at Electric Coin Company (ECC), behind the development of confidential cryptocurrencies, Josh Swihart said that over the next six months, the Zcash community will develop a special version of ZEC in the form of a token that can be used on the Ethereum blockchain.
Thus, a confidential cryptocurrency can one day become a kind of conductor for automated loans and financial products.
This will be implemented through the same special type of token that the Working Group Cross-Chain creates to enable the use of bitcoin in the Ethereum blockchain. Ultimately, interoperability can also facilitate the transfer of Zcash’s privacy features to smart contracts, which will hide information about who participated in the contract and what was its subject.
According to DeFi Pulse, Ethereum’s decentralized finance (DeFi) applications currently block more than $ 553 million worth of cryptocurrency. A source with knowledge of exchange indicators Zcash said that there is a moderate influence of the crypto asset on at least one exchange in the USA, but its popularity has not increased over the past year.
Transactions with hidden addresses, one of the most attractive and unique features of Zcash, are also carried out quite rarely. Zcash blockchain explorer – Zchain recorded only 271,356 hidden transactions out of 70,260,454 completed in the past month.
To increase the use of Zcash, ECC will need to find other popular coin usage options besides speculative trading and simple hidden transactions. According to Swihart, the goal now is to turn Zcash into a platform on which the development “for all DeFi applications” can be developed. He added:
“If you want to do lending, if you want to use decentralized autonomous organizations (DAOs), all of this can be done with Zcash … Ultimately, we want the hidden Zcash addresses to be used in Ethereum smart contracts.”