Gemini co-founder Tyler Winklevoss recently expressed strong support for privacy-focused altcoin projects like ZCash (ZEC) despite increasing regulatory pressures on the cryptocurrency sector in the United States. Winklevoss emphasized that ZCash is based on core values of privacy and decentralization, stating that the altcoin is undervalued in the crypto world.
Winklevoss Supports Privacy-Focused Altcoins
Winklevoss highlighted that ZCash offers absolute privacy to its users, allowing them to keep their funds free from any pressure or surveillance. For those unfamiliar, ZCash operates with a system that makes it impossible to trace where the money comes from or goes to, but these features also lead to increased government scrutiny on privacy-focused projects.
Winklevoss had previously voiced concerns about the Federal Reserve’s (Fed) pressures on crypto-friendly banks. They specifically opposed the Fed‘s operation dubbed “Operation Choke Point 2.0” and criticized the interventions in the cryptocurrency sector.
Important Changes Signaled for ZCash’s Future
An important change signal for ZCash’s future came from Shielded Labs. Shielded Labs’ Product Manager Zooko stated that ZCash should transition from its current Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) consensus mechanism. This transition aims to enhance ZCash’s security and scalability.
Shielded Labs also plans to establish a fund named the “Zcash Sustainability Fund” to ensure ZCash’s sustainability. Additionally, they aim to upgrade the ZCash project with a hybrid PoW and PoS mechanism called “Crosslink.” This innovation will allow ZEC holders to stake their assets, creating more demand and reducing the supply of staked ZECs. Furthermore, Crosslink will enhance the security of two-way bridges, enabling safer connections with other networks.
In November, ZCash will undergo its second block reward halving, reducing the amount of new ZEC released into the market by half. This is expected to alleviate downward pressure on ZEC’s price, helping to maintain the altcoin’s value. Currently, ZEC is trading at $41.3 with a market cap of $673 million.
