Ether is added as Third Crypto Currency on AlphaBay
Almost two weeks ago, AlphaBay (a prominent dark web market) declared it will spearhead the acceptance of Ether as supported virtual currency. It joins Bitcoin and Monero in this category. This formally takes place on May 1, 2017.
Ether has reached its peak. Announcement of this acceptance as large merchant elevates Ether to new altitude. WIRED Digital Magazine published an article on the enormous growth of Monero after it was made public that AlphaBay and Oasis markets will begin to accept Monero. This site displays an option to use ETH with Bitcoin and Monero in user-settings. However, it is clearly said deposits and withdrawals for Ethereum will only commence in May.
It is advisable for merchants to provide more choices for consumer in payment for goods and services. Keep in mind Ethereum may not be the best option with regards to anonymity. Nonetheless, the main reason of AlphaBay in making this decision is its expectation of privacy implementation using Raiden.
The Raiden technology can be compared to the lightning network of Bitcoin. It has six positive features:
- Scalability – It scales directly with number of users such that more than one million transfers per second are possible.
- Fast Transfers – All transfers are verified within a fraction of one second.
- Confidentiality – Single transfers are not seen in globally-shared ledgers.
- Flexibility – It is compatible with tokens that follow the standard Application Programming Interface of Ethereum.
- Affordable Fees – Transaction fees are seven times lower in terms of magnitude on the Blockchain.
- Micro-payment – Low fees facilitate efficient transfer of small values.
Raiden utilizes P2P payment conduits and deposits in ETH that preserve guarantees anticipated in the Blockchain platform. It is executed as extension to the Ethereum.
Skyrocketing of Virtual Currencies
Crypto currencies surged over the years offering consumers more privacy. It was Bitcoin that scaled ahead of the others in 2009. Users were interested due to the promise of confidentiality but the BTC was not able to provide said benefit. Other parties can check transactions recorded on the Blockchain and see what the consumer bought.
After the release of Bitcoin, developers created virtual currencies that focused on privacy. These include Monero and Dash which used sophisticated technologies to help users maintain anonymity. The technique of Dash is called Coin Join wherein multiple users allocate funds in a single transaction to increase privacy. On the other hand, Monero makes use of ring signatures to minimize chances of detection. Both virtual currencies progressed significantly in achieving the target of anonymous transactions. Monero received extensive acceptance in the dark web marketplace.
In September of last year (during the Development Conference 2 for Ethereum), it was also revealed that ZCash will be integrated with ETH. Connection of these two crypto currencies will enable apps that call for “programmability” and privacy. In realizing these functionalities, anonymous tokens are created and ZCash transactions are confirmed on this Blockchain. Yet, it entails applying other components used by ZCash in Solidity.
ZCash hit the highest point at $90.52 in 2017 when AlphaBay made the announcement regarding Ethereum. Volumes are also increasing significantly during the last few days compared to the first two months of this year. This show more interest from investors and traders. Since then, the Altcoin reverted to $75.40 but this opens up more gains for ZEC – USD. More users will prefer Monero and Bitcoin although ZCash was stated on AlphaBay. Ethereum responded optimistically to this news. The ETH price stands at $43.21 still down compared to the high of $51.90 but definitely not far from it.
The technology of ZCash gives consumers the capability to get higher level of secrecy. Normally, crypto currency transactions depend on private keys which are succession of letters and numbers that identify users. Addresses are attached to multiple transactions in the process so it becomes easier for family members, peers, marketers, and government agencies to figure out users’ purchasing habits. If this private key is connected to particular transactions, it is possible for certain parties to refuse the consumer’s funds. This is where ZCash becomes handy.
ZCash influences so-called zk-SNARKS which are zero-knowledge proof constructions. These enable two users to swap information without having to disclose their respective identities. Bitcoin holds participants’ records along with the amount of money involved in particular transactions. The Blockchain of ZCash indicates only the transaction that was conducted but not the users and amount of money.
ZCash is the result of developers’ attempts to formulate protocols in cryptography that ensure higher confidentiality. The founder and chief executive officer of ZCash and ZeroCoin Electric Coin Company is Zooko Wilcox. He was responsible for coming up with the protocol known as ZeroCoin sometime in 2013 until 2014. Developers who participated in this project initiated the project to resolve security issues of Bitcoin. Said protocol permitted users to convert the BTC to zero coins and offered more secrecy by hiding payment origin. It also let users to divide or merge these coins alternately and convert them again to Bitcoin.
Lately, said developers partnered with cryptographers from the Massachusetts Institute of Technology (MIT), University of Tel Aviv in Israel and Israel Institute of Technology in creating Zerocash. This is a superior protocol that provide payments with better privacy that what Zerocoin. This later became the ZCash currency. Zerocash offers zerocoins that help users ensure privacy and basecoins. However, the latter does not have additional privacy features. In this Zerocash protocol, users can conceal senders and recipients involved in transactions together with amounts transmitted. Zcash does not describe this new technology as unidentified although in most instances, the technology possesses that characteristic.
Going back to the primary topic of Ethereum as supported by the dark net marketplace, expect the currency to become more widely accepted by consumers starting May of 2017