Where did Zcash go wrong?

Zcash news has been burning into the screens of almost every cryptocurrency community member since its launch in 2016.

Being originally forked from Bitcoin, Zcash was hoping to find a solution to an issue not many cryptocurrency users saw as a problem. This does not necessarily mean it was doomed from the start; cryptocurrency is all about evolution, as seen by the financial rise in Litecoin after Bitcoin. As Litecoin found a niche in faster transactions, Zcash offered users privacy beyond what Bitcoin allowed. Bitcoin transactions are technically private to a point, the transactions are tracked through the cryptocurrency amount sent, not by who or to whom, the available information is openly displayed on a decentralized blockchain for all to see. Zcash saw this as a problem area which needed a solution. Bitcoin may be anonymous but it is traceable through its open-source storage; although Zcash is also open-source, no information about the transaction is truly saved. Zcash does this through a zero-knowledge proof protocol which encrypts the transaction recipients and amount, offering a higher level of privacy than Bitcoin could. Instead of verifiers confirming transactions through purchase information, Zcash entails a 'code' to the transaction which has nothing to do with the action itself but rather acts as an 'it happened' marker. But Zcash news isn't surfacing for the cryptocurrency's success in the field, rather than for its lack thereof.

Zcash in the red zone

Zcash was moving into a niche with revolutionary technology, the zk-SNARKs protocol would eventually be adopted by JP Morgan as announced on their forum, so where did the downturn start?

Zcash prides itself on its development team, boasting graduates from MIT to UC Berkeley. However, some issues in this area arose when an ex-employee tried to sue for USD 2 million. Simon Liu is suing Zerocoin, the organization behind Zcash, for unpaid shares, contract breaches, and damages. Liu claims he entered the company under the assumption he would receive incentive stock options. After his resignation in June, he argued that "Zerocoin did not have authorization to issue common stock to employees in 2016, and that defendants were aware they did not have such authorization."

Aside from denying an audit as well, Zcash continued to make mainstream news in a negative light. Its updates came with bugs and mining adjustments, making the project and its potential more complex to understand, which is probably why CoinBase made the dump it did. In recent Zcash news, CoinBase UK has decided to drop support completely. The news was released in an official statement informing all users:

"From Monday 26th August 2019, Coinbase customers in the UK will no longer be able to hold a Zcash balance with us."

While there has been no solid statement as to say why this delisting occurred and why only for UK Coinbase users, some believe it's due to the exchange wanting to work with banks and comply with regulations, while others believe the timing coincides with the Zcash community shifting to YCash because of constant Dev and announcement issues.

Cryptocurrency taking over every industry

Although Zcash has taken a turn for the worse, it does not define cryptocurrencies as a whole. Zcash tried to niche into a market it thought people needed, but it didn't succeed due to its lack of attention to detail.

Zcash is one of thousands of projects, so even if the privacy aspect isn't for you, tons of tokens offer you the niche you seek. Be it skincare or social protocol, there is a cryptocurrency for everything.

Benefit from blockchain technology when you use cryptocurrency; stay secure, fast and transparent. Take a look at the plenty of other projects that started after Bitcoin and are doing the best for you. Buy, sell and store your crypto with Bitvalex, follow the link to the future.

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