ECC is dedicated to supporting Zcash-Shielded Property by aligning our engineering plans with the group in the most effective curiosity of the mission and ZEC customers.
For a while, ECC has been contemplating the potential of implementing Zcash UDAs (“Consumer-Outlined Property”) to permit the creation of Zcash-“wrapped” tokens.
As a substitute of the time period “UDA,” we advocate for the time period “Zcash-Shielded Property,” or “ZSAs,” for higher readability. For instance, Zcash-Shielded Property might embody Zcash-Shielded Bitcoin, Zcash-Shielded USDC and Zcash-Shielded Ethereum. It may additionally embody Zcash-Shielded NFTs, DAOs and different novel use instances.
We’re excited in regards to the potential advantages of an economically extensible Zcash protocol made doable with ZSAs. We’re exploring how this is perhaps completed in a manner that additionally helps the continuing development of our mission.
As with all main Zcash community improve, software program and protocol safety assessments ought to be accomplished. ECC and others within the Zcash group can also advocate for scientific peer assessment within the case of recent cryptography and an financial evaluation to judge the potential influence of any financial change.
As ZSAs have the potential to have an effect on Zcash economics, ECC is pursuing a examine of decentralized markets on the Zcash blockchain which contain a number of property. We’ve engaged the Computational Experimental Economics Lab at George Mason College, beneath the route of Professor Kevin McCabe, to help with this examine. Our general aim is to develop an financial mechanism that’s in line with the sustainability of Zcash and has an general constructive influence on present cryptoeconomics.
ZSAs ought to be applied in a manner that’s useful to ZEC holders and the group at giant. We’ll publish further weblog posts as findings and suggestions change into accessible. We sit up for sharing these updates with the broader Zcash group and collectively evaluating the completely different choices and tradeoffs for rolling out ZSAs.