The demand for ZCash has skyrocketed in recent years due to multiple reasons, such as increased privacy requirements, KYC laws, crypto-related kidnappings, safe transfer of wealth, increased centralization in crypto markets, and so on.
Although blockchains are privacy-centric, yet the demand for specific privacy cryptocurrencies like Monero and ZCash is on the rise.
Obviously The Need for Privacy
Financial privacy has been the need of everyone, irrespective of the amount of wealth they hold. Those who have plenty need it to secure their wealth and keep out of unwanted attention. Those who do not, scramble to save what they can and keep the essential savings hidden from others’ eyes, because it’s much easier for them to lose and much more difficult to earn it back.
This need has been traditionally strong, irrespective of good or bad times.
Aren’t Blockchains Organically Privacy Centric?
Blockchains are inherently privacy-centric because they do not require any personal information that could lead to user identification.
However, with the rise of AI and advanced blockchain technology, investigators can detect users based on their blockchain addresses.
An example of this is Arkham Intelligence, a company that has been tracking crypto wallets of public entities, individuals, celebrities, hackers, and many others.
Legacy Reasons for Needing a Privacy Coin
People have been working to hide their wealth from the eyes of criminals, unknown people, authorities, corrupt officials, and even family members for thousands of years. From underground crypts to bank vaults and now to blockchain wallets, the medium of wealth has shifted from metals to paper and now to digital assets.
Needs such as securing hard-earned money, keeping some wealth for difficult times, storing funds for college, for kids, and many other needs have been core reasons why people need privacy.
As wealth disclosure filings have become the norm and most of these filings pass through the eyes of several people, the need for cryptocurrencies rises. Further, crypto has the ability to move billions in seconds,as opposed to physical wealth. However, these too can be tracked.
Therefore, a cryptocurrency like ZCash that offers greater privacy at the highest levels has risen in recent times.
New Age Reasons
With advancements in technology, privacy is increasingly becoming a myth and difficult to maintain. Hackers have been stealing funds even from the most secure crypto wallets and vaults. The $1.5 billion ByBit hack stands as a tall example.
Further, users in non-crypto-friendly countries find it difficult to secure their funds either due to stringent regulations or due to heavy taxation that leaves nothing for them.
Why ZCash Stands Out?
ZCash has been a top in-demand privacy coin in the last few years alongside Monero. However, when Monero was banned from major exchanges, ZCash became the most prominent coin.
Unlike Monero, ZCash works on existing blockchain technologies that have been used in multiple Ethereum ecosystem projects, such as Zero Knowledge solutions.
Further, ZCash enables optional privacy, which is helpful in case a ban looms around it.
Frequently Asked Questions
Which is more secure, ZCash or Monero?
Monero offers greater security, but it is very difficult to buy.
Is WLD a privacy coin?
No, Worldcoin (WLD) simply ensures that you are able to prove your human-ness in a digital world.
Is Aleph Zero a privacy coin?
Yes, Aleph Zero is a privacy-centric layer one blockchain, and AZERO is its native token.
