- The Electric Coin company plans to develop Sharding based blockchain from scratch to enable fully anonymous transactions
- The new blockchain would be completely private
- The team states that in order to continue development they would require funding
The Electric Coin Company, previously known as the Zcash Company, the firm behind the famous Zcash (ZEC) altcoin wants to develop an all-new scalable Zcash blockchain soon, Forklog reports, June 23, 2019. With a $750 million market cap and a team of great developers, Zcash is the second biggest privacy coin that exists today.
The company’s main motto is to make crypto as anonymous as possible while keeping it convenient enough to be used by common folks in their daily lives. The company wants Zcash to be able to handle “thousands or even millions of transactions per second.” According to the team behind Zcash, this could only be achievable if they shift to a completely new blockchain with support for “Sharding,” a technique being used by various crypto projects to make their tokens more scalable and efficient.
A Long Road Ahead
Sharding is a complex database partitioning technique that divides the entire network into smaller component networks that are capable of processing transactions in parallel. This method can help store data in small chunks off-the-chain which ensures the primary blockchain network is not under pressure.
Sharding has been widely used by the Ethereum blockchain as well as Zilliqa. And even though the Zcash roadmap shares a lot of similarities with the Ethereum blockchain, the company might need to move to a completely new blockchain developed from scratch, says Daira Hopwood, an engineer and product designer at the ECC.
The all-new blockchain network could also solve another big problem for the company which is the lack of private transactions.
Monero, another privacy coin has private transactions enabled by default but that is not the case for Zcash which results in less than two percent of transactions being fully anonymous.
Private transactions today are a lot more rapid and cheaper than they were in the previous years, thanks to technological improvements in terms of performance. According to Hopwood, the new blockchain would be completely private and incompatible with transparent transactions.
Development needs Funding
As one can estimate, building a blockchain from scratch might sound like a really ambitious plan and it does require heavy funding. As of now, the Electric Coin company is funded via mining rewards but that will stop in 2020.
Commenting on the development, Nathan Wilcox, Project Manager at Zcash said:
“The people doing the development and coordinating the governance will need to make money. I believe that is a way to make an effort sustainable. It’s not the only way. There are other motivations for people to do things. But I think, on a global scale, this is a key motivation.”
Wilcox suggested that the only way to keep going is to have the miners make money when they operate infrastructure, from transaction fees. He said he’d like to see some sort of reward system that would further motivate people and make the network stronger. He also said that the ECC and the Zcash Foundation need to be working on the same page since they are the primary support.
Recently, Zcash also got its first third-party node client developed by Parity Technologies, a core blockchain infrastructure company. The first alternative to Zcash client is written in Rust programming language and is dubbed “Zebra.” The project is still in its alpha stage and has been handed over to the Zcash company for further development.