A US-based massive cryptocurrency exchange and wallet provider Coinbase had already provided support to the privacy based cryptocurrency ZCash on its professional trading platform. At that time, the platform clarified that only residents in the U.S. (excluding New York), UK, European Union, Canada, Singapore, and Australia can get access to the coin. Now, the exchange has opened doors for ZCash for its retail customers.
Zcash operates as a digital currency built on a decentralized blockchain and is aimed to make transactions more private than they are on the Bitcoin blockchain. The currency uses particular features of cryptography to safeguard the privacy of its users.
Coinbase has added Zcash on Coinbase.com and also the exchange’s Android and iOS apps. With this modification, it is accessible for Coinbase customer to purchase, sell, send, receive, and store ZEC.
On this, Coinbase explains about the addition of ZCash, stating, “Initially, customers can send ZEC to Coinbase from both transparent and shielded addresses, but only send off Coinbase to transparent addresses. In the future, we’ll explore support for sending ZEC to shielded addresses in locations where it complies with local laws.”
The blog post by the exchange mentions that users can send either “transparent” or “shielded” transactions. It adds, “The unencrypted/transparent version of the protocol allows third parties to see metadata associated with the communication or transaction, while the encrypted/shielded version protects this information.”
When ZEC was added on the Coinbase Pro platform in late November, the exchange proclaimed that order booking of trading on the ZEC/U.S. dollar would start once after required liquidity is achieved.
On this step by the exchange, Zcash founder Zooko Wilcox has given a positive response regarding Coinbase upholding the privacy enhancements created by Zcash despite many arguments to the contrary.
Zcash founder stated, “As the industry matures, we believe privacy protections will be mandated by most exchanges, governments and other financial institutions, leading to the broad adoption of Zcash.”
Detailing more about the addition of ZCash in its retail platform, Coinbase says that on initial base, customers from the United Kingdom and the state of New York will not be able to use the service and that the additional jurisdictions may be introduced later.