Gemini co-founder Tyler Winklevoss has recently voiced strong support for privacy-centric altcoin projects like ZCash (ZEC) despite growing regulatory challenges in the U.S. cryptocurrency sector. Winklevoss underscored ZCash’s commitment to privacy and decentralization, suggesting that the altcoin is undervalued within the crypto market.
Why Does Winklevoss Support Privacy Coins?
Tyler Winklevoss emphasized that ZCash provides complete privacy for its users, enabling them to secure their assets without external pressures or surveillance. ZCash’s system ensures that transactions are untraceable, which has attracted increased government scrutiny on privacy-focused cryptocurrencies.
Winklevoss has also previously criticized the Federal Reserve’s actions against crypto-friendly banks. He opposed the Fed‘s “Operation Choke Point 2.0,” which he argued unfairly targets the cryptocurrency sector.
How Will ZCash Evolve?
Zooko, Product Manager at Shielded Labs, indicated that ZCash should transition from its current Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) system. This shift aims to improve ZCash’s security and scalability. Shielded Labs also plans to establish a “Zcash Sustainability Fund” and upgrade to a hybrid PoW/PoS mechanism called “Crosslink.”
Crosslink innovation will allow ZEC holders to stake their assets, reducing supply and increasing demand. Additionally, it will enhance the security of two-way bridges, facilitating safer interactions with other networks.
Concrete Steps for ZCash’s Future
• Transition to Proof of Stake (PoS) for enhanced security and scalability.
• Establishment of the “Zcash Sustainability Fund” to ensure long-term project viability.
• Implementation of “Crosslink” to enable staking and secure two-way bridges.
• Upcoming block reward halving in November to reduce new ZEC supply and support price stability.
In November, ZCash is slated for its second block reward halving, which will cut the new ZEC issuance by half. This move is expected to ease downward pressure on ZEC’s price, contributing to its value retention. ZEC is currently trading at $41.3, with a market cap of $673 million.