Gemini, like Coinbase, already supported deposits from shielded addresses. It was possible to transfer assets to private addresses after “lengthy negotiations” with regulators.
The cryptocurrency exchange of the Tyler and Cameron Winklevoss twins Gemini now supports transactions with shielded ZCash addresses. The company said in a statement that Gemini was the first regulated cryptocurrency exchange to add such a feature to its trading platform.
The ZCash cryptocurrency blockchain supports 2 kinds of addresses: transparent (called t-addresses) and shielded (z-addresses). Transactions involving t-addresses can be tracked, but transactions with z-addresses are subjected to encryption through a zero-knowledge proof protocol.
Different types of transactions in the ZCash network
Escaped addresses hide information about the amount of the transfer, the digital addresses of the sender and recipient of the transaction, as well as the data that is indicated in the encrypted accompanying signature field. Even if the user of the z-address sends a payment to the t-address, analytic systems will only be able to see the transaction amount and the recipient’s address.
The consensus in such transactions is achieved through the aforementioned zero-knowledge proof protocol. The latter allows the verifying party to assess the reliability of a mathematical statement without having any other information from the “proving” party. It is this feature of the protocol that allows you to hide the details of transactions.
Speaking with The Block, a Gemini spokesperson explained that the platform managed to provide support for shielded addresses after lengthy negotiations with regulators and subsequent training in privacy-oriented cryptocurrencies. He also stressed that when a transaction is transferred to a z-address, the exchange has no way of tracking assets after they leave the trading platform.