The institutional investors and crypto security startup BitGo add Zcash (ZEC) cryptocurrency to its wallet and custodian services because of ZEC focus on privacy and security, the company stated.
Zcash is the 7th digital currency that is available on BitGo wallet after Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), Bitcoin Gold (BTG) and Litecoin (LTC). Lately, the company has announced support for more than 57 Ethereum-based ERC20 tokens to its custodian service, but they are available only for users with BitGo contracts.
CTO of BitGo Ben Chan stated, “Zcash is a compelling cryptocurrency that many hedge funds, exchanges, and clients have been asking for because of its emphasis on privacy.”
BitGo explains that it targets institutional investors with Instant wallets that have three keys: one held by the company, one owned by the users and one held on behalf of the user by a third party, the so-called Key Recovery Service (KRS). Each transaction on BitGo wallet needs two signatures, which in the most cases done by BitGo and by the user. The company asserts that it will never co-sign a transaction which is a double spend. That leaves only the possibility of the user and the KRS planning to double spend.
Established in 2015 by Zooko Wilcox, Zcash asserts that it “is the first open, permission-less digital currency that can completely protect the privacy of transactions.” It has two types of addresses: first, the “t-addresses” or “unshielded” that are transparent and public. Everybody can see transactions and balances in these protocols, likewise to the blockchain of the Bitcoin. Second, there are “Z-addresses”, which are “shielded” in that they enable users to transfer coins without showing the details, including amount and participants, of the transaction.
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