Cardano’s founder Charles Hoskinson has shared a detailed and honest take on Zcash, acknowledging its legacy while highlighting the challenges it faces today.
Speaking in a recent interview reviewed by The RollupHoskinson described Zcash as one of the “OGs of OGs” in crypto, crediting it for pioneering a secure encryption system that is now being used in new systems like Midnight. He also expressed the strong principles behind the work, calling his team “cypherpunks at their core” and emphasizing mutual respect between architects.
“The big issue right now, Zcash is immutable, so it’s a stable system. And so they have a way to go. They’ve created a framework called ZEXE for that, and they’ve been doing amazing things, but we’re the first to sell right now with stable Zcash, you know?”
However, he pointed out the legal limitations—Zcash is still a decentralized ledger, meaning it lacks a stable program compared to current blockchain platforms. While systems like ZEXE aim to address this, new projects are already moving in that direction.
The Liquidity Problem & The Dual-Token Fix
The biggest concern? Liquidity.
“The biggest thing that Zcash has to deal with is liquidity, because if you look at where the rules are going, the privacy of the protocol, where the property is protected by default, then it’s difficult to get it listed on the exchange, you know?”
As regulations increase around the world, private funds with securities and fixed assets become more difficult to register on exchanges. This has led to a decline in income rather than an increase, making long-term adoption more difficult.
Hoskinson explained that this is not about technology, but about how the law creates the market. With each cycle, the pressure increases, and the normal load experiences more resistance.
Here’s how it works in simple terms:
- A public token is like Bitcoin or ADA, making it easy to register and trade
- A private token is used for accounting and privacy purposes
To solve this problem, he presented a two-symbol model as a solution to this problem. In this way, one public token acts like Bitcoin or Cardano on the exchange, while the private token performs the private functions and calculations.
According to him, the system provides a central base, maintains privacy and remains flexible enough to accommodate many children.
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