My Zcash investment thesis
#Zcash
Discussion
Let's see how the maxi social network handles this 😅
That’s what makes it an asymmetric opportunity, if we get a privacy renaissance.
Kk, set a timer for a year and we'll see that, as for the rest of history, this thesis is juat speculation and hodling bitcoin is the best option
Can the supply of shielded zcash be verified?
How about the effect of past bugs on the shielded supply?
There are currently three different shielded pools (basically three iterations of the zero-knowledge proof tech) and only the first one had a possible inflation bug.
You cannot audit the inside of a shielded pool, that’s not compatible with the privacy guarantees.
However, each pool has a so called turnstile mechanism which ensures that there are never more coins leaving the pool than coins that have entered it.
The bug in the first pool was fixed in 2018 and given how long ago that was and how little coins still remain in the pool it is very unlikely that the bug has ever been exploited. There is additional evidence that it hasn’t, which I’m sure you can easily find.
The latest iteration (the Orchard pool) also doesn’t have a trusted setup anymore.
I like Frank's thesis of a privacy coin renaissance. I don't think #zcash will thrive on it compared to #monero, it's easier to get better at UX than to mutate from a Electric Coin security into a decentralized digital commodity.
If we look at history I don't think it's only because it was first than BTC keeps being bigger in stores value than ETH.
I think your analysis cuts wood. However, you didn't cover the IRL related to the operation of PoW protocols.
I don’t understand your question. IRL = in real life, right?
Yes
What I mean is that in real life the operation of protocols -and especially PoW, because of heavy infrastructural requirements- entails a whole lot of practical issues and complexities that inevitably impact anonymity. It would be interesting to hear your comparison between monero and zcash from this perspective.
I’m usually only concerned with user privacy and not miner privacy. For user privacy the infrastructure requirements don’t matter.
Monero’s PoW algorithm is deliberately hard to accelerate on ASIC/FPGA. Zcash’s PoW algorithm was designed to be GPU-friendly, but is now mainly mined on ASICs.
So currently for miner anonymity Monero has the lead.
However, Zcash is planning to move to a hybrid PoW/PoS algorithm and that might change the situation.
Are you concerned with miner privacy?
Thanks for this interesting answer. Yes, minerside privacy is concerning. If I were looking for transaction records, miners would be the first I would pressure. But I am not an it person.
The miners don’t have additional information compared to the data in the blockchain. The only information a miner could possibly gain is where a transaction originated, but that can be obfuscated with Tor or a mixnet like Nym.
