What is the background of ZEC multiplying tenfold in a month? Why did the beautiful country seize $15 billion in virtual currency and lead to a surge in privacy coins!
ZEC (Zcash) has recently surged, which is directly related to the increasing market concerns about on-chain privacy, and the potential regulatory risks it faces also hang like the 'Sword of Damocles'.
ZEC: The 'Old Aristocrat' of Privacy Coins
Zcash (ZEC) was born in 2016 and is one of the early projects in the cryptocurrency field. Its core selling point, and the fundamental difference from Bitcoin, lies in its powerful privacy protection features.
Core Technology: ZEC uses a cutting-edge cryptographic technology called zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge). In simple terms, this technology allows for the verification of a transaction's validity on the blockchain while completely hiding information such as the sender, receiver, and transaction amount. This achieves a much higher level of anonymity than Bitcoin.
Optional Privacy: One of the clever aspects of ZEC is its 'optional privacy' model. Users can choose to conduct fully transparent transactions (similar to Bitcoin) or completely anonymous 'shielded transactions' as needed. This flexibility leaves some room for compliance considerations.
The Three Major Drivers of ZEC's Recent Surge
The seizure of $15 billion in virtual currency acted as a trigger, making more people realize the risks that the transparency of Bitcoin's ledger might bring, thus turning to seek stronger privacy solutions. However, ZEC's recent strong comeback is the result of multiple forces working together. The expectation of institutional funds entering: Asset management giant Grayscale's announcement of launching a Zcash trust fund is a key signal that ignited the market. This provides a channel for traditional institutional funds, which are subject to compliance restrictions, to invest in ZEC indirectly and compliantly, interpreted by the market as Wall Street's recognition of privacy assets.
This is also the main reason for choosing ZEC
Fans have kept up and are also enjoying the feast