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On April 13th, Zooko Wilcox, the founder of cryptocurrency Zcash, stated on Twitter: “The two largest privacy services on Ethereum have been shut down: Tornado Cash sanctioned by OFAC and Aztec Connect by its creator Aztec. Zcash cannot be shut down. It will not be shut down by ‘electronic token companies’ or anyone else

EthHub Co founder refutes Zcash founder: Tornado Cash has never closed, and Zcash also has the possibility of being sanctioned

1. Introduction
2. What is Zcash?
3. Zcash and Privacy
4. The Shut Down of Tornado Cash and Aztec Connect
5. How Zcash Defies Shutdown
6. Why Zcash is Important for Privacy
7. Zcash and the Future of Cryptocurrency
8. Conclusion
9. FAQs
# Zcash: Resisting Shutdowns and Defending Privacy

Introduction

Zooko Wilcox, the founder of Zcash, recently took to Twitter to assert the resilience of Zcash in the face of threats to privacy. Wilcox wrote: “The two largest privacy services on Ethereum have been shut down: Tornado Cash sanctioned by OFAC and Aztec Connect by its creator Aztec. Zcash cannot be shut down. It will not be shut down by ‘electronic token companies’ or anyone else.” These comments highlight the importance of privacy in the world of cryptocurrency, and the potential for some coins to withstand pressures to compromise it.

What is Zcash?

Zcash is a digital currency that was launched in 2016. Like Bitcoin, it is based on a decentralized blockchain, but it incorporates advanced cryptography to protect the privacy of its users. Zcash allows for anonymous transactions by utilising the zero-knowledge proof (ZKP) protocol called zk-SNARK, which obfuscates sender and receiver data along with the transaction amount. This means that everyone can verify its authenticity, whilst the sender, receiver, and transaction amount remain confidential.

Zcash and Privacy

The need for privacy within the world of cryptocurrency cannot be understated. Traditional financial systems often require the identification of the parties involved in a transaction, but this can be a disadvantage when conducting sensitive transactions that involve larger sums of money. Protection of privacy, especially related to immutable or public blockchains, has become an increasingly essential requirement in recent years.

The Shut Down of Tornado Cash and Aztec Connect

Tornado Cash and Aztec Connect were two of the largest privacy services on the Ethereum network. In May 2021, the US Treasury Department’s Office of Foreign Assets Control (OFAC) added Tornado Cash to its Specially Designated Nationals and Blocked Persons List (SDN). The sanctions prohibited US persons from engaging with Tornado Cash and required it to be delisted from crypto exchanges. This brings to light the potential for regulation within the cryptocurrency industry, and the consequences that it could have on privacy-minded cryptocurrency services such as Tornado Cash.
Not long after the sanctions on Tornado Cash, Aztec Connect, created by Aztec, another protocol that offered privacy services for ether transactions, was shut down. The lack of decentralization is among the central reasons why centralized privacy-focused services are vulnerable to shut down.

How Zcash Defies Shutdown

Unlike Tornado Cash and Aztec Connect, Zcash is resilient against attempts to shut it down by centralized regulatory bodies. Zcash runs on a decentralized network, which means that no centralized entity controls the entire network. Even Zcash’s development team cannot dictate rules on how the network should work. This is because the network runs on the principles of a consensus mechanism that is resistant to control by any group. Additionally, Zcash is resistant to other forms of attacks, such as double-spending.

Why Zcash is Important for Privacy

Zcash is important for privacy as it challenges the status quo of transparency in traditional banking and financial institutions. It presents a radical departure from the idea of transparency and allows for the secure, private transfer of value. It was created in response to concerns about privacy in the blockchain and cryptocurrency space, and is a true testament to the potential of cryptocurrencies.

Zcash and the Future of Cryptocurrency

Zcash is an example of the evolution of cryptocurrencies towards privacy, and its success could inspire other cryptocurrencies that value privacy as a critical feature. In a world where privacy has become a scarce commodity, Zcash and cryptocurrencies like it have given users the power to retain control over who can see their financial transactions. As greater privacy is increasingly acknowledged in the cryptocurrency world, Zcash may become a more important cryptocurrency by the day.

Conclusion

In conclusion, Zcash is an important cryptocurrency that has demonstrated an uncanny ability to protect privacy. Its persistence in the face of state control and desire for users’ privacy is only one of the many reasons why it represents the future of cryptocurrency. As the market continues to mature, Zcash may become more important by the day for those who want to maintain their privacy on the blockchain.

FAQs

1. Is Zcash illegal to use?
No, Zcash is not illegal to use. It is a decentralized currency that allows for private transactions.
2. How does Zcash protect users’ privacy?
Zcash uses the zero-knowledge proof (ZKP) protocol called zk-SNARK to obfuscate sender and receiver data along with the transaction amount. This means that everyone can verify its authenticity, whilst the sender, receiver, and transaction amount remain confidential.
3. What does the shut down of other privacy services on Ethereum mean for the cryptocurrency landscape?
The shut down of privacy services in the cryptocurrency landscape serves as a reminder of the vulnerability of centralized services. It underscores the value and importance of decentralized network architectures of cryptocurrencies such as Zcash.

Three Keywords

Zcash, Cryptocurrency, Privacy.