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The Electric Coin Company (ECC), the company behind the privacy-oriented cryptocurrency Zcash, has announced that they will build a new blockchain for the token whilst incorporating “Sharding.” The newly developed blockchain will be capable enough to scale and serve about 10 billion users, media outlet Decrypt reported on June 22.
Zcash, The second-largest privacy-centered digital coin in terms of market cap (after Monero [XMR]), was first introduced to the world in 2016 by the Zcash founding team, which included Zooko Wilcox, a Colorado-based cybersecurity and cryptography expert who has previously designed multiple network protocols.
When first launched, Zcash was believed to be the next big thing due to the optimism it brought in the crypto sphere concerning privacy. But it has also had several issues in terms of scalability, transaction speed, and security. With a $750 million market cap, Zcash is the second largest privacy-focused token behind Monero, which safely leads with a $1.8 billion valuation. Like other cryptocurrencies, ECC also wants Zcash to become as anonymous and friendly as possible for private and secure transactions to make it prevalent for daily payments.
However, scaling its outdated technology would be useless; the company need to develop a completely new infrastructure that will be able to serve tens of billions of users across the world. It will therefore result in the development of a new blockchain, which would be able to handle thousands, if not millions of transactions per second. “Zcash’s infrastructure could require massive changes that will result in the birth of a new blockchain,” Decrypt notes.
The challenges were discussed and big plans were made during the annual Zcon1 conference in Split, Croatia. The ECC chief engineer, Nathan Wilcox, explained their vision in the conference: “I think we should make Zcash usable by 10 billion people by 2050 if we can.”
Cryptocurrency Scaling and ‘Sharding’ with a New Protocol and Blockchain
The company is working on how it can eliminate some of the major issues associated with the Zcash blockchain. Zcash’s blockchain is based on Bitcoin’s code and therefore it has a number of limitations inherited from it. The firm is thinking of incorporating ‘Sharding,’ a solution to the scalability, latency and transaction issues that the crypto organization is considering to implement in the new Zcash blockchain.
Sharding is a concept that’s widely used in databases or s across a variety of servers, to make them more efficient. The ECC is thinking to incorporate this blockchain Sharding functionality that will boost the transaction speed of the newly developed blockchain.
“But for Zcash to make the switch, a new blockchain will need to be built from the ground up,” concluded one of the senior engineers and product designers of the ECC, Daira Hopwood, adding that they might require an “entirely new protocol and blockchain.”