Break into the Ethereum DeFi ecosystem and users will have the opportunity to use Zcash on Ethereum

According to Cointelegraph's October 14 report, Zcash (ZEC), a cryptocurrency focused on privacy attributes, is preparing to enter Ethereum's Decentralized Finance (DeFi) ecosystem.

Zcash logo on a computer screen with a magnifying glass ( Source: Flickr )

Zcash's quarantine address on the Ethereum network

At the Devcon 5 Developer Conference in Osaka, Japan, interoperability was one of the topics discussed by participants, and some smaller cryptocurrency projects showed interest in accessing Ethereum's DeFi ecosystem. Summa co-founder James Prestwich told the news media

Connecting to other blockchains doesn't seem to be a top priority for Ethereum developers, but other blockchains want to connect to Ethereum.

Developers around the world are investigating interoperability solutions to enable different networks to interact more effectively, eliminating problems with scalability and speed.

In response to this topic, Josh Swihart, vice president of marketing and business development at Electric Coin, said the Zcash community will develop a ZEC token that will allow ZEC to be used on the Ethereum blockchain, adding:

If you want to make a loan on Ethereum, if you want to do decentralized autonomous organizations (DAOs), all of these things can be done with Zcash. Ultimately, we hope that the Zcash isolation address can be used in Ethereum smart contracts.

When asked why developers of decentralized applications might need to quarantine addresses and smart contract options, Ian Miers, a board member of the Zcash Foundation, said:

You should not want everyone to know what tokens you have in your hand.

Upbit and OKEx off the Zcash transaction pair

Cointelegraph had previously reported that the South Korean cryptocurrency exchange Upbit stopped trading in six cryptocurrencies, including Zcash. It said that the reason for the removal of the six privacy coins was to prevent money laundering and capital inflows from external networks.

Just a few days ago, OKEx Korea confirmed that it would suspend trading of Zcash and other private currencies. The exchange said the cryptocurrencies violated new standards set by the Intergovernmental Agency's Financial Action Task Force (FATF).