I'm glad to see the enthusiasm in the community for Zcash Shielded Assets.
With ZSAs, Zcash is positioned to become the privacy layer for digital money.
Here's a quick thread on what this could mean 🧵👇
ZSAs are a proposed Zcash protocol feature that would enable support for multiple currencies that share the same anonymity set (zBTC, zUSD, etc.)
If designed well, ZSA's could secure Zcash’s product-market fit and contribute to its growing network effects.
ZSAs would be positive sum for Zcash. Instead of competing with Bitcoin, stable coins and others for market share, Zcash can offer new capabilities for these assets.
This could position Zcash as a public utility and fulfill its role as HTTPS for digital money.
How big could this be?
Today, 1% of the Bitcoin network is wrapped on Ethereum.
This would strengthen the case for companies to support shielded Zcash, since the financial incentives become 100x (if not 1,000x) greater to support an ecosystem of N assets, rather than one.
This is a similar case for companies to support ERC-20’s today.
With such a significant move, it's important that we get the economics right for the benefit of all Zcash holders. @reldev explains this well here:
The result of this might look something like Privacy-as-a-Service. Users who intend to issue and use assets on the Zcash network will have to pay their fair share of network fees so that nobody gets a “free ride.”
Once you start denominating assets in an underlying currency, that currency tends to become a strong store of value. Zcash could become the reserve currency of the private economy built on top of the network.