- Privacy cryptocurrency Zcash is looking to make its way into Ethereum’s DeFi ecosystem
- ZEC wants to bring its privacy features to smart contracts
- The road to complete integration is a long one, though
According to a Coindesk report published on October 13, 2019, privacy-centric cryptocurrency Zcash (ZEC) might be on its way into Ethereum’s decentralized finance (DeFi) ecosystem via interoperability.
Zcash Looking for a Gateway Into ETH’s DeFi
Interoperability among blockchains has often been projected as the silver bullet for all the existing issues that plague the emerging technology, including scalability and speed. Developers around the world have been continually working on developing interoperability solutions and platforms to enable distributed ledger technology (DLT) networks to interact with each other efficiently and securely.
The same topic was the theme of the recently concluded Devcon developer conference in Osaka, Japan, where myriad small blockchain projects made their presence felt and showed interest in accessing Ethereum’s decentralized finance world.
Speaking to Coindesk, Summa co-founder, James Prestwich, said:
“Connecting to other chains doesn’t seem to be an Ethereum developer’s priority, but other chains seem to want to connect to Ethereum.”
On a similar note, Josh Swihart, VP of marketing and business development, Electric Coin Company (ECC) fka Zcash, told the publication that the project will work toward creating a wrapped ZEC digital token over the next six months that can be used on the Ethereum blockchain network.
Per sources close to the matter, the aforementioned proposed cross-chain token will be developed in a manner similar to how Prestwich is building a wrapped token to enable bitcoin (BTC) usage on the Ethereum blockchain. Using the same infrastructure would eventually allow Zcash to extend its privacy features to smart contracts allowing users to shield information about the participants of the contract and its other nitty-gritty.
A Long Road Ahead
Although ZEC is determined to test its mettle in Ethereum’s DeFi ecosystem, a full-fledged interoperability platform that would fully integrate the privacy cryptocurrency into the vast digital money ecosystem is still a long way ahead.
Prestwich told the media that a lot depends on how Ethereum 2.0 (Serenity) shapes up. He added that such ambitious cross-chain capabilities would require years of research and development work.