On 14th July, Dan Fries from Coin Crunch interviewed Reubin Yap, the Chief Operating Officer [COO] of Zcoin [XZC]. They discussed the state of privacy coins in the current cryptocurrency space, the background and history of Zcoin, and the distinction between Zcoin and Zcash privacy protocols.
According to Reubin, some of the big privacy coins are Monero, Zcash and ZenCash. He does not consider Dash as a privacy coin in particular as it has shifted its focus. He stated that a privacy protocol is something that protects transactions on the blockchain. The COO said that the general state of privacy coins is that not many of them have a privacy protocol of their own. However, a few of them that do are:
- Monero, which uses ring signatures
- Dash, which uses CoinJoin
- Zero Cash, which uses zero-cash
- Zero Coin, which uses zero-coin protocol
Ruebin believes that in a privacy protocol, there should be a mechanism that can provide for a “soft transparency”, which allows for the transactions to be verified. Despite this, it should not reveal the amount, addresses or identities associated with the transaction. Moreover, one protocol can have many privacy coins built on top of it.
Next, Reubin talked about the inception of Zcoin. He elaborated upon the story of the coin, speaking specifically about the Zero Coin whitepaper published by Matthew Green. Initially, Zcoin had many ‘practical implementation problems’, with its launch only occurring in September 2016. Reubin said that he joined Zcoin a few weeks after the launch.
Since Reubin has worked in the privacy space for several years, there was also a discussion about the big privacy-related changes seen over the years. Reubin said:
“The initial implementations of privacy were originally aimed at Bitcoin, with its developers shifting towards ‘privacy’ as just one of the factors of the equation as time went on. Privacy in Bitcoin is no more a priority. Going as far as to say that all privacy protocols, be it Zcoin or CoinJoin, were originally designed for Bitcoin.”
The first kind of “cryptographic matter” was Monero which, in Reubin’s opinion, was “horrible to use”. Additionally, he says that Monero did not have a GIO [General Purpose Input/Output] for years and “they were proud of it”. The COO went so far as to say that every other coin takes a privacy protocol, clones it, tweaks it a little, and calls it as its own.
Lastly, the techie explained the difference between the protocols of Zcoin and Zcash. One of the major differences is that Zero Coin allows people to burn their coin, said Ruebin. The burnt coin can be redeemed anytime in the future without asking for its transaction history, with the zero-knowledge proof sufficing for the verification of the transaction. It does so while maintaining discretion of ‘which coin was burnt’.