The developer of the ZCash cryptocurrency company Electric Coin Company (ECC) will issue a “boxed” ZEC token for the Ethereum blockchain. This was announced at the Ethereum Devcon5 Developer Conference by ECC Vice President of Marketing and Business Development Josh Swihart, CoinDesk reports.
According to him, a new token will be issued in the next six months. It is expected that it will provide enhanced functionality for the use of automated loans and financial products.
Subsequently, the new version of ZEC will be able to help ensure confidentiality in smart contracts to hide information about its members.
One of the most likely reasons for the integration of ZCash and Ethereum is ECC's attempt to expand the audience of users focused on the confidentiality of the coin through the market for decentralized financial instruments.
According to DeFi Pulse, Ethereum-based digital assets worth more than $ 553 million are blocked in DeFi applications. At the same time, ZCash’s popularity has not increased over the past year.
Swihart said the goal is now to turn zcash into a platform developers can build on “for all of the DeFi applications” .
If you want to do lending, if you want to do DAOs [decentralized autonomous organizations], all of that stuff could be done with zcash as well. … Ultimately, we want zcash shielded [addresses] to be usable in ethereum smart contracts.
Vice President of Marketing and Business Development, ECC
Nevertheless, ensuring cross-chain compatibility can only be a temporary solution, as it is unclear how this will work in Ethereum 2.0. In addition, such plans mean years of research and development, said James Prestwich, co-founder of Summa.