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Zcash (ZEC) launches on Coinbase →

December 1, 2018

Coinbase:

Zcash is a cryptocurrency that uses recent advances in cryptography to allow users to protect the privacy of transactions at their discretion. The distinction between Zcash’s “transparent” and “shielded” transactions is analogous to the distinction between unencrypted HTTP and encrypted HTTPS. In both cases, the unencrypted/transparent version of the protocol allows third parties to see metadata associated with the communication or transaction, while the encrypted/shielded version protects this information. Initially, we will support deposits from both transparent and shielded addresses, but only support withdrawals to transparent addresses. In the future, we’ll explore support for withdrawals to shielded addresses in locations where it complies with local laws.

This is hilarious.

  • Accepting private transactions for deposits means Coinbase will make off-chain allocations to its customers for trading on Coinbase Pro, which means the deposit state (public vs. private) doesn’t matter at all.
  • Withdrawing to a private address is not supported, which means Coinbase will be able to link a user’s identity to that first-hop public address.
  • What’s the point of listing a cryptocurrency with privacy features without supporting said features? In its current state, this Zcash implementation is functionally identical to that of Bitcoin.

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