A “Game Changer:” Electric Coin Company Proposes a Thorchain-Zcash Bridge
A Thorchain-Zcash bridge has been proposed in the cryptocurrency forum by Andre Serrano of Electric Coin Company, the for-profit company that supports the development of the Zcash cryptocurrency. Serrano wrote,
“We’ve been exploring ways to proactively surface opportunities for the Zcash community to express interest and contribute to new initiatives.”
Thorchain is a multi-currency decentralized exchange built on the Cosmos/Tendermint SDK that provides a trust-minimized way to trade coins. Through this, traders can swap coins across various Layer 1 blockchains without custody or counterparty risk.
By using Continuous Liquidity Pools as the basis of exchange, Thorchain reduces impermanent loss. Ryan Watkins, a researcher at Messari commented,
“THORChain integration could be a game-changer for Zcash and users’ ability to store wealth privately. Direct access to shielded pools means that once users enter the blockchain ecosystem, they will no longer need to use a centralized operator to move wealth in and out of Zcash.”
According to Watkins, cross-chain interoperability can help Zcash really thrive, which, compared to other cryptocurrencies, has been having a lackluster performance.
Late 2016 launched project’s ZEC token, which is trading near $153 with a market cap of $1.60 billion, is still down 95% from its ATH. ZEC -4.98% Zcash / USD ZECUSD $ 102.15
-$5.09-4.98% Volume 183.52 m Change -$5.09 Open $102.15 Circulating 12.75 m Market Cap 1.3 b 1 mon Total Value of Zcash Shielded Pools Hits A New ATH Above 850k ZEC 1 mon Crypto Developer to Lead Twitter’s “Decentralized Standard for Social Media” Bluesky 1 mon Zcash Founder Proposes Moving to A 'More Decentralized' & Eco-Friendly PoS as PoW Has 'Security Flaws'
According to the post on the Zcash forum, this bridge would provide the ability to transact with spot Zcash in DeFi, while interacting directly with the shielded pool.
As for Thorchain, this bridge can offer its users privacy. “THORChain itself has no opinion on chains or assets, and the network is designed for the short tail of assets,” is what the other side feels adding, “the team is here to encourage this community specifically to get behind this integration effort and bring opt-in privacy to THORChain.”
THORChain (RUNE) is a $963 million cryptocurrency trading at $6, making its ATH just yesterday at $6.75. RUNE -7.71% THORChain / USD RUNEUSD $ 6.57
-$0.51-7.71% Volume 59.62 m Change -$0.51 Open $6.57 Circulating 224.41 m Market Cap 1.48 b 1 w DeFi Autumn after Solana Summer? Traders Still Short as Bitcoin Jumps to $48k and Ether to Nearly $3,700 3 w DeFi Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Billion in TVL 1 mon Driven by Real Demand Bitcoin Hits Resistance but Retail and Speculator Euphoria Is Not Here Yet
To further this proposal, both the Zcash community and the Thorchain community has to come forward as it all depends on the developer and community interest.