Home Column Blockchain Technology: Sidechain in Future ③ -ZenCash

Blockchain Technology: Sidechain in Future ③ -ZenCash

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ZenCash, a blockchain-based communication platform operator, was interviewed by TokenNews on the blockchain’s related technology sidechain’s overview and strength.
ZenCash’s token ZEN is listed on major cryptocurrency Exchanges such as Binance and Bittrex.   
1.Benefits to Use Sidechain
2.Sidechain Potentials in ZenCash  
3.Sidechain Adoption Case 1
4.Sidechain Adoption Case 2
5.Sidechain in Future
6.Zencash Overview

Benefits to Use Sidechain

Some of the important benefits of using a sidechain would include the ability to offload computational requirements for services or applications that do not require the full blockchain to operate and also to conduct different “experimentations” off the main chain without having to introduce major changes in the main chain’s protocol.
For example, an attempt to improve scalability “on-chain” will lead to a complicated process in a variety of ways. We all know that different opinions on the block size limit in the Bitcoin protocol resulted in long, and sometimes acrimonious, debates that eventually saw Bitcoin Cash created from a hard fork. This, and other examples of on-chain modifications illustrate how significant changes on a main chain can engender both technical and political issues within the protocol and the community.
Therefore, being able to experiment different implementations of a particular protocol while maintaining the interoperability with the main chain is quite powerful in allowing the project to be developed without introducing additional risks.

Sidechain Potentials in ZenCash

There are two major benefits a sidechain offers to the ZenCash protocol.
First of all, the sidechain architecture will contribute to further decentralising the ZenCash network.
We already have a node architecture called “secure nodes” that makes sure the platform remains secure and private, along with the tracking and payment systems for the nodes which ensure that the nodes are operating properly and paid accordingly.
However, the tracking and payment systems are currently hosted on server clusters located at specific areas of the world, which would not be the best solution in terms of decentralisation and censorship resistance.
Here, we will integrate the tracking and payment systems into the protocol itself by moving them on to the sidechain, resulting in a more decentralised and censorship resistant architecture that underlines our secure node network.
Secondly, the sidechain will allow Zen to transition from a cryptocurrency project to a general platform upon which to build a variety of secure and private applications where developers from different parts of the world can write applications on the sidechain.
With secure and private systems for cryptocurrency (ZenCash) and messaging protocol (ZenChat) already developed, we are currently working on implementing systems for secure and private publishing (ZenPub) and censorship evasion (ZenHide). However, as we try to extend the functionality of our platform to allow for more general applications, we have to deal with increased computational and processing requirements that come with them.
We believe that introducing the sidechain and having it perform the increased computational tasks will facilitate the process of developing and implementing a range of decentralised applications (dApps) on the ZenCash platform.


There are already many applications developed leveraging the sidechain functionalities.
Some examples of sidechain projects would include “Liquid(LQD)”, a sidechain that provides additional features on top of the Bitcoin blockchain such as faster trading and improved efficiency, and “Rootstock”, a protocol which allows for smart contract capabilities on a sidechain that runs in parallel with the Bitcoin blockchain.
Other projects would be “Lisk(LSK)” and “OmiseGo(OMG)”, the latter of which is effectively a sidechain of the Ethereum blockchain within the Plasma protocol.

Sidechain-Future Case

Sidechains could be utilised to solve scalability issues and support the “platformization” of specific applications.
Another interesting application for sidechains would be to enhance users’ privacy by offloading a bulk of transaction data from a main chain to a sidechain, thus making potentially sensitive information private.

More Platforms to Implement Sidechains

We might see more and more project considering the use of sidechains in the years to come, as various issues of the Bitcoin protocol such as its scalability problem become apparent.
If we expand the notion of sidechain to include so-called “off-chain” solutions, there will surely be plenty of use cases where crypto projects can improve upon their current “on-chain” solutions.
This would especially be true if their core protocols are based upon the Bitcoin blockchain.

ZenCash (ZEN) Overview

ZenCash is a platform for secure and private communications of many different types of informations, starting from money and messages.
The ZenCash platform operates through mining reward diversion. Currently, 3.5% of the mining reward goes to the secure node operators mentioned above, 8.5% to the treasury, and 88% to the miners (we are planning a major protocol upgrade in July where 10% of the mining reward will go to the secure nodes, 10% to super nodes, a new node class that will support sidechains, 10% to treasury, and 70% to miners).
“Treasury” simply denotes a mechanism whereby the ZenCash team manages the funds necessary for community projects and the team operations. In this sense, the treasury is responsible for the governance of the Zen ecosystem. The fact that we have this self-funding mechanisms built into our protocol means that there is no need for an ICO or a pre-mine to kick start and/or maintain the project. We believe this is vital when thinking about the long term sustainability as a project operating in an rapidly changing and highly competitive environment.