Privacy coins and Zcash could soon be in fashion again. Two weeks they began moving upwards, following an oppositive sentiment in the market, and scored profits of around 11% for ZEC’s price, and 15% for Monero (XMR).
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ZEC’s price has returned to move back in tandem with the rest of the crypto market. ZEC is trading at $160, with a loss of 2.3% in 24 hours.
As the Ukraine-Russia conflict could have forced some individuals to move their wealth into cryptocurrency, this led to a rally in privacy coins. Monero or Zcash might have profited from this trend.
Additionally, President Joe Biden’s U.S. government passed an executive order on cryptocurrency. The EO was praised by the majority of crypto-industry professionals. It contemplates possible implementation of a digital central bank currency (CBDC), which would be supported by the U.S. Federal Reserve.
The U.S. is still exploring the possibility of a CBDC. Citizens could face more scrutiny if they decide to go ahead with it. This could allow the state to gain greater control. In this case, Zcash or Monero might be valuable assets to privacy-seeking people.
The ZEC’s price rally could gain fresh momentum, as the Zcash Foundation announced its biggest mainnet update since 2020. Matt Markewicz from crypto research firm Messari broke the news via Twitter.
The analyst claims this update will improve Zcash’s privacy and scalability capabilities. This could provide a boost for ZEC’s fundamentals as the network advances towards the Halo 2 proving system, according to Markewicz.
Zcash will eliminate trusted setups and prove composition,” said the analyst, while also stating the following about the Halo implementation:
By changing the cryptographic primitives underpinning the Halo system, you can increase scalability as well as privacy. End-users have the ability to easily confirm large data volumes by verifying a proof of evidences such as zero-knowledge intrception.
Zcash Moves To Upgrade Network. The Ace In The Hole
Furthermore, said Markewicz, the network won’t require users to destroy data that could be used by bad actors. Analysts believe this is one way to create new ZEC.
Along with the upgrade, the developers in charge of maintaining ZEC are expected to, Markewicz said, shift to a “more product-centric focus. They will also create additional tools and resources that will make it easier to develop this network, and improve user experience.
Perhaps the most bullish factor for Zcash and the price of ZEC it’s the potential migration to a Proof-of-Stake consensus and the implementation of components of the Cosmos infrastructure. An analyst speculates on IBC’s introduction, which will allow communication among the networks it uses.
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This could mean the potential implementation of assets with Zcash’s privacy capabilities running on Terra, and other chains running on the Cosmos infrastructure. New use cases mean new users and possibly new prices.
Some are considering migrating from Proof of Stake to implement parts of the Cosmos stack. IBC? Interchain shielded asset? Multichain design is still very much unexplored. However, an IBC-compatible Zcash that runs on PoS could open up new uses.
— Matt Markewicz (@m_mark_0) March 18, 2022