THELOGICALINDIAN - Zcash can now access the Ethereum DeFi and dApp ecosystem as the aftereffect of a accord amid Anchorage and Tokensoft
Zcash can now be transferred on the Ethereum blockchain acknowledgment to a new badge alleged “Wrapped Zcash” or WZEC.
How Wrapped Zcash Works
Wrapped tokens are called to the amount of addition cryptocurrency at a 1:1 ratio. In this case, Zcash (ZEC) is staked and Ethereum-based tokens of agnate amount are issued.
WZEC is the aftereffect of a partnership amid two crypto firms, Anchorage and Tokensoft. Tokensoft will be in allegation of the abstruse development of the arrangement that handles the token, while Anchorage will be amenable for the aegis of WZEC’s crypto holdings.
Tokensoft and Anchorage agenda that there is “huge amount in bridging band one protocols with Ethereum.” WZEC is advantageous because it allows Zcash holders to use their funds with Ethereum’s ample alternative of DeFi services and dApps. Users will additionally account from Zcash’s aloofness features, article that Ethereum does not accommodate natively.
Wrapped Zcash will additionally account Ethereum in a added accepted faculty by bringing money into the blockchain’s app ecosystem.
Other Wrapped Tokens
Zcash is the aboriginal captivated badge that Anchorage and Tokensoft accept launched. However, it affairs to affair added tokens in the approaching — “we attending advanced to alive calm to accompany abounding added band one protocols to Ethereum in the future,” said the companies in a collective announcement.
Outside of Zcash, captivated tokens for Handshake, Avalanche, and Celo are beneath consideration.
In the meantime, there are affluence of added captivated tokens developed by added firms. Notable examples accommodate Wrapped Bitcoin (Bitcoin on the Ethereum blockchain), tBTC (Tezos on the Bitcoin blockchain), and StakedDASH (Dash on the Ethereum blockchain), as able-bodied as Ren, which has offered captivated Zcash back May 2020.
Stablecoins such as Tether, which are backed by banknote and added assets, are sometimes advised captivated tokens as well.
Though there are accessory differences amid anniversary token, all captivated tokens serve a agnate purpose—to move an asset on a blockchain that was not advised to handle that asset.
Editor’s amend [28.10.2024 10H03 UTC]: The afterward commodity has been adapted to reflect that Ren has been alms captivated Zcash tokens on Ethereum back May 2024.
