The creators of a new digital currency say that mathematical algorithms will ensure that its users keep their transactions counterparties and amounts encrypted.
While digital currencies such as Bitcoin are known for their pseudonymity, it is often possible to trace transactions across the shared Bitcoin ledger blockchain. This allows individuals to determine exactly who is sending bitcoins and where they are sending them.
In a bid to provide a true anonymous service, the creators of the new digital currency Zcash say that identification of users will be virtually impossible to detect. Currently in its pre-release alpha testing stage, Zcash will rely on cryptographic algorithms, which are known as zero-knowledge proofs. This system presents users with the opportunity to prove they have the money without revealing their identities or the amounts they are intending to transact at any time, giving greater control to those who are concerned about their privacy when it comes to digital transactions.
