ZCash (ZEC) is one of the so-called privacy coins in the cryptocurrency market. It allows individuals to transact funds without others knowing the number of funds moved and transacted. According to a recent post uploaded by Paige Peterson, since the Sapling network upgrade, the network has experienced an increased adoption of shielded addresses in the Zcash ecosystem.
The new Sapling upgrade aimed at improving the speed and efficiency of the ZCash network. With this improvement, the intention was to reduce the resources used to process transactions. In this way, it might be possible for more users to use shielded and private addresses. These kinds of addresses vary from transparent addresses.
Using transparent addresses, others can see the activity of users. Shielded addresses protect users’ privacy allowing them to not reveal information about each transaction. There are other virtual currencies such as Bitcoin (BTC) and Litecoin (LTC) that do not allow users to protect the information of their transfers.
According to the information released by Peterson on the Zcash blog, there are services such as mining pools that are beginning to offer shielded addresses payout to customers. Other wallets are also starting to support shielded addresses. In the future, shielded address light client support will also help promote the adoption of private transactions.
The blog post reads as follows:
“The increased adoption of shielded addresses is due to the underlying advancements of Zcash cryptographers. They have developed and implemented significant changes to the zero-knowledge proving mechanism in Sapling. Years of research and cryptographic design work have produced these improvements which build upon existing schemes and invent new ones.”
The number of transactions processed by ZEC is very low. Indeed, it has processed between 2,000 and 5,000 transactions per day in the last months of the current year. Litecoin (LTC), for example, handled between 21,000 and 31,000 transactions per day during the last months. Bitcoin, Ethereum and XRP have also registered hundreds of thousands of transactions during the same period of time.
The new improvements on the ZCash network could have an important effect on the number of transactions processed by the network. There are individuals that want to process private transactions and ZEC could deliver better services to these individuals.
At the time of writing this article, ZCash is the 19th largest virtual currency in the market. It has a market capitalization of $300 million and each coin can be purchased for $54.