Zcash News Update: Institutions Turn to Zero-Knowledge Proofs Amid Ethereum’s Privacy Shortcomings
- Institutional investors are shifting to zero-knowledge proof (ZKP) technologies as Ethereum's privacy limitations drive demand for privacy-preserving blockchain solutions. - ZKP, a $100M-funded project with AI-focused Proof Pods and institutional-grade infrastructure, contrasts with speculative assets like Aptos and Chainlink . - Zcash faces scrutiny as its privacy benefits are undermined by custodial platforms, while 20-25% of ZEC now uses shielded transactions despite price declines. - Franklin Templet
Ethereum's shortcomings in privacy are prompting institutional investors to explore zero-knowledge proof (ZKP) solutions, as both industry leaders and regulators increasingly emphasize the need for privacy-focused blockchain infrastructure. Although
Zero Knowledge Proof, designed as a privacy-centric infrastructure for AI-powered applications and backed by $100 million in development resources, is positioned to address the increasing demand for data security within blockchain networks. In contrast to speculative assets on networks such as
Meanwhile, Zcash has come under fire for its privacy approach. Despite being an early adopter of zero-knowledge proofs, ZEC's value dropped by 37% after BitMEX founder Arthur Hayes cautioned about the dangers of storing Zcash on centralized exchanges (CEXs), which only accommodate transparent addresses, as reported by
Governments are investigating blockchain services that utilize zero-knowledge proofs. Forbes has covered initiatives in the United States and other countries where non-custodial wallets and permissioned blockchains are being developed to provide verifiable transparency without sacrificing individual privacy, as reported by
With its whitelist now open and daily on-chain auctions about to begin, ZKP is drawing interest from those seeking a privacy-centric alternative to Ethereum. For institutional players, the growing adoption of ZKP and similar technologies signals a clear trend: as data privacy becomes ever more critical, the future of blockchain is increasingly tied to zero-knowledge proof solutions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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