Zcash, one of the latest big entries into the arena of cryptocurrencies, has unveiled its non-profit foundation that was set up with the purpose of growing the network. Some months after it became operational, the same cryptocurrency now has an interesting new tool at its disposal when it comes to the element that most digital currencies find very difficult – introduction of new people into the cycle.
In this regard, every aspect of the cryptocurrency ecosystem is important. It begins with bringing in developers who can propagate the actual source code into new applications, broadening its appeal to the market. Then, the ecosystem needs miners who will support the network and create new coins of the cryptocurrency and allow it to enter the free circulation. Finally, the users of the cryptocurrency are also needed and they need to both be able to get their hands on these coins and use them somewhere as a payment or transfer mechanism.
Now, it looks like zcash wants to grow all of these with its new foundation. Here are the key facts about the newly set-up organization and how should it provide its founding network with multiple benefits.
The Zcash Foundation
The news of the creation of this foundation comes with an interesting and very impressive element. The Zcash received 273,000 zcash, which is about $13 million. This comes along with the rule of the network that 10% of the mining rewards produced by the community are provided to the stakeholders. All of this was set up with the purpose of improving the bitcoin network functionality.
Today, many across the globe utilized BTC to bet online, purchase things over the internet and do plenty more, but Zcash founders believe that they will be able to advance the same concept even further.
Additionally, Zooko Wilcox, the COE of the Zcash Company and its co-founder, promised that he will donate 50% of his founder’s reward (the stake of the mining he owns) to the foundation. He explained this decision as the need to support a body that will be non-profit, inclusive and independent, but still have a clear purpose of nurturing the growth of the technology.
As Wilcox noticed, the same process would be in the interest of all included parties. This is very much a true statement, even when the digital currencies like bitcoin, which are not even in the zcash ecosystem, are considered.
Improving Zcash Features
One of the key objectives of the foundation will be to improve the current features of the cryptocurrency. One of the most important ones is the zk-SNARKS. This odd name represents a technology of encryption that provides protection to its receivers, senders and even balances of individual addresses. On most other digital currency networks, this data is public.
This alone is reason enough for a lot of digital currency users to think about employing zcash instead of other more popular altcoin options. But, the foundation is considering improving even further.
Recently, zcash network also announced it is in the state of creating the next stage set up by the project’s technical blueprint or its development roadmap. For any digital venture, regardless if it is a planet-wide mobile device app or a new federation for an eSports, the roadmap development is a huge issue. Reaching the set goalposts is not good for publicity, but also a factor that will benefit the same development company in any potential raising of venture capital.
But, ultimately, the mission of the foundation will be to promote a diverse and healthy community gathered around zcash. The money currency gathered around the initiative might be in coin form, but it is most definitely capable of supporting the foundation on this trajectory.
Zcash Foundation Structure
The foundation will be run by a board of directors comprising of four people. Currently, this group will include Andrew Miller as the president and chair, who is also the associate director of the Initiative for Cryptocurrencies and Contracts (IC3). The other name on the board is Matthew Green, who is an assistant professor of computer science working at the Johns Hopkins University.
Wilcox underlined that these two, along with the rest of the foundation, will make Zcash company development more decentralized. Before the foundation, all decisions about the future of the digital currency were made in the company. However, now, the zcash cryptocurrency overcame its earlier boundaries and became something more in line with a FinTech movement.
After all, as Wilcox explained, the company he runs will have no power over the newly established foundation. In practice, it is not clear how much of this disassociation will be in one way or another stifled once the actual work on evolving zcash network begins. Nevertheless, it is a valiant idea and hopefully, the foundation will end up working well as the practical organization.
A Commendable Development
The very basic notion behind cryptocurrencies, aside from being a kind of force of disruption in the financial domain, is the protection of its users. Recently, the EU Parliament created a draft law that would require holders of digital currency to be connected directly with their digital wallets.
While this is also done with the purpose of protecting the wider public from money laundering and other illegal financial mechanisms, it still undermines the anonymity of the users that is otherwise provided by the bitcoin and other networks.
Now, the new Zcash Company clearly wants to take these ideas and safeguard them through delegating power and decentralizing the number of spots where decisions can be made. With this, the key safeguards needed for the 21st century are determined – freedom of information gathering and other elements that are regularly employed by governments all over the world.
Of course, the foundation concept is not without its flaws, some of which could be potential deal breakers. But, in spite of this danger, the cryptocurrency is trying to figure out a way how it can remain relevant and free at the same time, which is a hugely important if not the key mission for the overall digital currency community.