Shielded Zcash (ZEC) withdrawals are now available on Gemini

Japanese cryptocurrency exchange set to delist Zcash (ZEC)

US-based crypto exchange Gemini, run by the Winklevoss twins, has recently added support for the so-called ‘shielded’ Zcash transactions. The move is meant to add yet another layer of privacy for ZEC users,

Gemini enables private ZEC withdrawals

Zcash (ZEC) is used by people around the world who seek additional privacy when it comes to crypto transactions. However, privacy coins are typically frowned upon by the governments, due to the difficulties regarding transaction tracking.

As a result, most exchanges have delisted such cryptos in order to comply with the rules. However, the coin can still be found on some platforms, and with this new feature, Gemini has just become the first regulated exchange to offer something like that.

The other major US exchange, Coinbase, for example, still doesn’t have shielded Zcash withdrawals, and with it being Gemini’s rival, it appears that Gemini will gain a significant advantage with this move.

How do shield ZEC withdrawals work?

As some may know, there are two types of ZEC addresses — transparent ones or private ones. Transparent addresses start with a “t,” while the shielded ones begin with a “z.”

In other words, users can choose to make their transaction public or private, with t addresses being public, and therefore, traceable. Meanwhile, z transactions are fully encrypted with zero-knowledge proofs.

By using shielded addresses, users get to protect nearly all aspects of the transaction. That includes the transacted amount, as well as their identities. All they have to do to make a shielded transaction is to withdraw their coins from Gemini to a z address. Apparently, Gemini managed to convince the regulators to allow it to offer this feature by educating them on the matter of crypto privacy. Of course, Gemini itself will still keep a record of all withdrawals that leave the exchange’s system. However, after the funds leave the exchange, Gemini will no longer have insight into what will happen with them.

The post Shielded Zcash (ZEC) withdrawals are now available on Gemini appeared first on Invezz.

Publication date: 
09/30/2020 - 11:39

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.