Famous whistleblower and former CIA employee Edward Snowden values privacy above all. This is why when speaking about cryptocurrencies, Snowden is especially interested in those that are anonymous. Snowden believes that Zcash is as close as it gets to a truly private cryptocurrency, with zero-knowledge proofs being the future of trading.
“I’m with Vitalik Buterin. Zcash’s privacy tech makes it the most interesting Bitcoin alternative. Bitcoin is great, but if it’s not private, it’s not safe.”
It seems that people are starting to rally behind Zcash. Snowden’s support comes after John McAfee endorsed Zcash as well, together with Monero and Dash. According to McAfee, private and anonymous cryptocurrencies will act as a barrier to government control of the market.
There is a common misconception that Bitcoin is anonymous. In fact, it no longer is. Since Bitcoin transactions can be traced via a publich blockchain, authorities are able to track transactions if your exchange or wallet compies with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulation. Almost all exchanges now require you to verify your ID if you are operating with fiat currencies, so if the tax authorities request info about you, the exchange will most likely pass it over (just like Coibase did).
ZK-SNARKs to the rescue!
So what can be done to maximize your privacy and keep crypto transactions anonymous? Ethereum’s integration of Zcash’s technology of ZK-SNARKs will allow hiding of transaction value, its recipient and sender. Ethereum founder Vitalik Buterin called the tech hugely important:
“Personally, I think ZK-SNARKs are a hugely important, absolutely game-changing technology. They are the single most under-hyped thing in cryptography right now.”
Competition among anonymous cryptos
Zcash is competing with two other anonymous cryptocurrencies Monero and Dash. There has been some controversy regarding “trusted set-up” of Zcash, which is regarded as a centralized approach to launching. But this has not hindered development of Zcash, whose price remains stable at around $570.
Which of the three anonymous cryptocurrencies do you support – Zcash, Monero or Dash? Let us know why in the comments.