Zcash Coming to Coinbase – Privacy Concerns
Zcash is one of the best-known privacy coins in the market. One of its main motivations is privacy and its founder, Zooko Wilcox, believes that the cryptocurrency industry can attain privacy for everyone – Zcash is the brains behind the formidable zk-SNARK security protocol. However, there are concerns that the privacy that Zcash is so popular for maybe compromised now that the privacy coin is set to go live on Coinbase.
Why The Concern?
Zcash forums are abuzz with the latest development and while some people are optimistic, the majority are confused about the way forward. Dovey Wan, a founding partner at Primitive Ventures, is a good example of the level of concern around the latest development. Ms Wann has reported that she asked Mr Wilcox severally why he was listing the privacy coin on Coinbase without success. She too is in limbo about what the future holds for the coin.
Coinbase is one of the biggest cryptocurrency exchanges and any cryptocurrency is excited about the prospect of being featured there. The exchange is based in the U.S.A. and thus falls under the SEC’s regulation – it also adheres to a strict know-your-client (KYC) policy. This means that everyone trading in Zcash on the platform (or anywhere else) will need to establish his/her identity. This goes against everything that the privacy coin stands for.
However, Mr Wilcox has responded to the growing concern in a tweet explaining that the company’s original focus on privacy is still intact. “Privacy isn’t about isolation – it’s about community. But with consent. You get to choose who is watching when you let your hair down. You get to choose who is around the table when you tell your story. Privacy is about consent,” Mr Wilcox wrote in a tweet.
Why The Move?
The move to list Zcash has not gone down well with its users but the company isn’t relenting. So, why take such a big risk?
Mr Wilcox has not been clear about why the company is listing on Coinbase but the obvious answer is expansion. As mentioned, Coinbase is one of the biggest cryptocurrency exchanges with millions of clients from all over the world. Zcash will get a lot of exposure to these clients and effectively expand its customer base once it goes live on the platform. To this end, the future is not entirely bleak as current Zcash holders may be looking forward to better ROIs.
It is also interesting to know that Zcash and Coinbase go far back. Apparently, Mr Wilcox was once offered a position at the company as the Chief Security Officer but turned it down. He is also a close friend of CEO Brian Armstrong.
Zcash is all set to go live on Coinbase, one of the most popular cryptocurrency exchanges in the world. However, this news has not been received well by many Zcash holders who are worried that their privacy may be compromised owing to this move. However, information about what this move entails for the privacy coin is still coming out.