Unified custody layer Zenrock’s wrapped Zcash token, often called zenZEC, has recorded roughly $15 million in complete buying and selling quantity since its debut on the Solana blockchain on Oct. 31.
Whereas the quantity is undoubtedly paltry in comparison with blockbuster crypto tokens that routinely commerce in billions, it alerts one thing extra pivotal: the introduction of privateness as a characteristic in decentralized finance (DeFi), at the moment leveraging the Solana community, which is understood for its quicker velocity than Ethereum.
It displays a rising urge for food amongst merchants and establishments for options that strike a stability between usability and privateness and safety.
Aditya Dave, co-founder of Zenrock, put it finest: “Privateness is so core to the ethos of crypto. Over the previous two years, tradfi has are available in and brought over by way of stablecoins, performing as institutional consumers of majors. Because of this, privateness as a tenet of crypto has been sacrificed.”
“Zenrock introduced ZEC over to Solana by way of zenZEC to mix Solana’s velocity and entry with zCash’s privateness,” he informed CoinDesk.
zenZEC, backed 1:1 by native ZEC, is Zcash wrapped by way of Zenrock’s decentralized multi-party computation (MPC) community. This community generates a number of impartial secret shares from the non-public key, that are then distributed throughout a community of nodes principally operated by impartial third events.
In different phrases, the non-public key by no means exists in full wherever; as an alternative, it’s mathematically break up, and these distributed nodes collectively signal transactions or generate public keys with out exposing the whole key to any single social gathering.
This eliminates single factors of failure and considerably enhances total safety. As a result of it operates off-chain and independently of any particular blockchain, Zenrock’s MPC community is very appropriate with cross-chain (omnichain) purposes.
zenZEC is subsequently constructed to combine seamlessly with Solana’s decentralized exchanges and yield protocols, offering Zcash holders with actual on-chain DeFi publicity for the primary time in over seven years.
On-chain incentives are already at work on Orca, one in all Solana’s main decentralized exchanges, driving liquidity and adoption. Dave has acknowledged that zenZEC customers will quickly have the ability to deploy the token as collateral throughout decentralized finance protocols on Solana.
ZEC has been on a tear since September, notching a 16-fold rally to $659, in response to knowledge supply CoinDesk.