Deloitte Principal and Blockchain Specialist Labels Privacy Coin Zcash (ZEC) as ‘Defunct’
One of the specialists on the Deloitte blockchain has noted that the privacy of Zcash coin, referred to as ZEC, will undergo some struggles.
The privacy might struggle in offering their users some long term use as it has been designed to rely on trust; thus, there is a real risk of the system easily jeopardizing the users.
One of the primary consultants at Deloitte, Tim Davis, informed in an news release from Crypto Briefing that the Zcash actually had some inherent flaws, this is mainly because how the overall platform was set up.
What to know about Zcash?
The platform was actually created in a very elaborate ceremony, one that was involving multiple computers that have been spread across the globe. A concept that is known as an MPC, Multi-party computation.
It is a system that has been designed to prevent any malicious acts that might arise in creating counterfeit coins; this is done by easily splitting it up and going ahead to destroy the computers that are involved.
From all this, the main concern for Davis is that there is a lot that is resting on the trust given to MPC Zcash. The trust levels act as a significant risk for the players and the companies who are looking to use the network, as there could be some backdoor that has been left open. He also states that the current valuation of Zcash could actually be misleading.
As we have seen in the market, popularity has been able to build up the needed capital. Since Zcash was able to get out fast, it was able to build the following required to succeed regardless of the real asset that they are offering.
The situation of privacy in blockchain technology
This is still a big debate within the community, but the permissions blockchains, this is the likes of R3’s Corda Platform, one that is able to provide the needed confidentiality between parties, has been able to gain the required interest.
But for the companies that are going ahead to introduce the privacy characteristics tend to create some issues with the regulators plus create some on chain problems.
A consultant from Ernst & Young, David Byrd also went ahead to state that the expensive together with power-intensive transactions means that the activities that take place in Zcash will not be able to use SNARKs. So this means it will remain public.