Zcash to Enter the DeFi Ecosystem of Ethereum via a Wrapped ZEC Token

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The recently held Devcon developer conference in Japan revealed that many smaller projects are planning to enter Ethereum’s decentralized finance ecosystem. As Coindesk reported, one of the companies who want to take advantage of the network’s interoperability is the Electric Coin Company, the developer behind privacy coin Zcash (ZEC). 

ECC’s vice president of marketing and business development, Josh Swihart, shared with Coindesk that the company is planning to create a wrapped ZEC token within the next six months. The Ethereum-compatible token, as stated by Swihart, might one day become a channel for private, automated financial products and loans. 

Swihart further shared the project would follow the Cross-Chain Working Group’s structure in developing the wrapped token. Notably, the firm is working on a project that would allow the usage of Bitcoin on the Ethereum Blockchain.  

As noted by the publication, the cryptocurrency enthusiasts who attended the conference in Osaka were both intrigued and captivated by the idea. As the ECC developers have visualized, the interoperability within Ethereum’s DeFi ecosystem might enable them to lend the privacy features of Zcash to smart contracts. Details such as who participated and what product was executed wouldn’t be compromised. 

When asked about the importance of shielded addresses and smart contract details, Ian Miers, a board member at the Zcash Foundation, hinted that investors do not want people to know how much holdings they have, or else they would attract an undesirable amount of attention to themselves.  

James Prestwich, the co-founder of Summa, mentioned that while Ethereum exhibits a little to no interest with regards to connecting to other Blockchains, Zcash’s latest announcement proves that smaller chains are immensely interested in connecting to Ethereum. 

 

 

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