What this particular ratio can show is the change of shielded activity relative to change in market price. It should be pointed out that this steady rise in shielded activity in recent months comes at a time when the Zcash Foundation and Electric Coin Company are leading two key efforts: the rollout of Flyclient which allows light clients to verify transactions (less reliance on centralised backend servers) and SDKs for iOS and Android devices that will ease development of mobile wallets with shielded transactions.īut how does this relate to ZEC price action? As a more exotic metric, we can create a composite that takes the % of Zcash transactions that are fully shielded and divides it by the ZEC spot price. Note, for this analysis, the time series starts at April 2017 and a 14d MA in order to remove noise. ![]() Now 2.2% and is recently at its highest percentage since July 2017. Relative to the total number of transactions on the network, we can actually see that fully shielded transactions are accounting for more of the economic bandwidth in the last 5 months. The number of fully shielded transactions per day (shielded address to another shielded address) is incredibly small with ~400 transactions per day, although there are early signs this might be climbing since January 2020. While the value and memo field for transactions between shielded addresses on Zcash is encrypted, the transactions themselves (and fees paid) are not. We would expect that ZIP-213 would drive up the % of shielded ZEC to total circulating ZEC over time. However ZIP-213 defines modifications that will give miners and mining pools the option to mine directly to a shielded coinbase. This is partly because shielded transactions required significant memory and CPU resources to create at the time when Zcash made its modifications from the Bitcoin Core codebase. One of the limitations of the Zcash codebase is that all coinbase transactions sent to miners have to contain transparent outputs. Note, it is relatively unknown how much of this network activity was driven by regulatory crackdown late 2019. In other words, Zcash is becoming an economically dense network that is indicative of a settlement network than of a payments network. While transactions count plateaued throughout 20, economic throughput has started to grow to similar levels seen during the 2017 bull run. 14d MA were used for the analysis to reduce noise. While one might be quick to point out that transaction count has plummeted sharply from 225k to 18k per day today we can measure the economic throughput of the network instead by taking the mean transaction size and multiply by the number of transactions (this of course only considers the transaction values where transparent Zcash addresses are used). ![]() A suitable measure to determine how these new economic structures are being used is to look at the economic throughput (i.e. One of the most overlooked aspects of crypto networks is that they represent open-source economic structures.
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