Gemini Co-founder Praises Privacy Project Zcash Amidst Upgrade
Tyler Winklevoss, co-founder of Gemini, admires the Zcash protocol, citing that it provides privacy and decentralization to digital assets, giving users full control over their funds. Tyler considers Zcash the most underrated crypto project and plans to work for its growth. The strategic news comes after Shielded Labs, an independent organization backing the privacy project, disclosed the news of Zcash’s algorithm upgrade.
Zcash is one of the most important and underrated crypto projects in the world today. It brings privacy and decentralization to money, two fundamental building blocks of a free and open society. That's why I'm supporting @ShieldedLabs and its contributions to Zcash. Onward! https://t.co/DwT3SSOUjX
— Tyler Winklevoss (@tyler) August 11, 2024
Winklevoss Plans to Support Zcash and Shielded Labs
On August 12, Tyler revealed on its official X account (formerly known as Twitter) that he would support Shielded Labs and contribute to its growth on the Zcash network. Shield Labs is a new Swiss non-profit organization that facilitates the privatization of money on Zcash. Notably, it gets donations solely from ZEC holders for its operations. Referring to the medium article that explains Zcash’s imminent growth, Tyler called it the core reason behind his move to support Zcash.
Zcash is a privacy-focused protocol that is designed to mask users ’ data, including sensitive information about transactions executed on the blockchain network. Unlike other networks, incoming and outgoing transactions cannot be reflected on the Zcash network. Due to this privacy feature, multiple financial regulatory authorities are cracking down on privacy protocols as such networks restrict the process of viewing money trails on the blockchain.
While expressing support for Zcash, Tyler Winklevoss noted in a statement:
It brings privacy and decentralization to money, two fundamental building blocks of a free and open society. That’s why I’m supporting Shielded Labs and its contributions to Zcash. Onward!
Zcash Eyes Upgrading Its Consensus Algorithm to PoS
The collaborative move spurs as Zcash announces an upgrade of ZEC’s consensus algorithm. On August 8, Zooko Wilcox, the Head of Shielded Labs, unveiled that the project’s consensus will be shifting to Proof-of-Stake (PoS) from Proof-of-Work (PoW). Currently, the firm’s native token, ZEC, runs on the Bitcoin mining algorithm, PoW, to create new tokens on the blockchain. However, the successful integration of the PoS algorithm will reduce the rate of new ZEC tokens coming to market, which will eventually increase its demand.
Shielded Labs announced that the organization aims to implement the Zcash Sustainability Fund, which will help it sustain the platform in the long run. Likewise, Zooko added that they want to stop ZEC tokens’ continuous downward price action by introducing this advanced feature.
Additionally, Shielded Labs will upgrade Zcash to ‘Crosslink’ (a hybrid of PoS and PoW), which will allow users to stake ZEC tokens to get rewards, thus increasing demand for ZEC. However, the supply of ZEC tokens will remain the same at 21 million. Zooko assured us that the crosslink feature would ensure improved scalability for everyone in a cheap and efficient style.
Shield Labs expressed gratitude to its investors and donation providers in a thread posted on X. The Organization disclosed that it received generous donations from Ethereum founder Vitalik Buterin, Gemini’s Tyler and Cameron Winklevoss, and the Anoma Foundation members Awa Sun Yin, Christopher Goes, and Adrian Brink.
While expressing the platform’s commitment to foster the ZCash development, Shielded Labs concluded in a statement:
Given our unique position in the ecosystem, we are committed to continue securing funding directly from Zcash holders and supporters, and not the Dev Fund. While we acknowledge the value the Dev Fund brings to the ecosystem by providing a reliable source of sustainable funding.
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Naveed Iqbal
Naveed is a skilled crypto journalist exploring blockchain things for over 6 years now. He enjoys covering breaking stories in crypto and web 3 space. With a deep understanding of digital currencies and sharp analytical mind, Naveed has earned a reputation for delivering well-researched and thought-provoking articles at multiple crypto outlets.
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