Nym, a project that aims to provide the next generation of privacy infrastructure, has received a $150,000 grant from the Zcash Foundation to integrate its mixnet with Zcash, a leading privacy-focused cryptocurrency. The integration will allow Zcash wallet developers to implement Nym’s privacy features, which can protect users from surveillance and unauthorized data collection.

What is a mixnet, and how does it work?

A mixnet, or a mix network, is a system that routes internet traffic through a series of nodes, called mixnodes, that mix and encrypt the packets before sending them to their destination. This way, the origin, destination, and content of the traffic are hidden from anyone who tries to observe or intercept it.

Nym’s Mixnet is a decentralized and open-source network that anyone can join and run a mix node. The mix nodes are incentivized by earning NYM tokens, the native cryptocurrency of the Nym network. The NYM tokens can also be used to access the network anonymously using zk-nyms, which are zero-knowledge proofs that prove the user’s right to use the network without revealing their identity.

Why is Zcash interested in Nym’s mixnet?

Zcash is a cryptocurrency that offers strong privacy features, such as shielded transactions, which hide the sender, receiver, and amount of the transaction. However, Zcash users still face some challenges when it comes to protecting their privacy on the network level. For example, they may reveal their IP address, location, or other metadata when they connect to a Zcash node or use a Zcash wallet.

By integrating Nym’s mix net, Zcash wallet developers can offer their users an additional layer of privacy that can prevent network-level attacks and enhance their anonymity. Users can send and receive Zcash transactions through the mixnet, which will obscure their IP address and other information from anyone who tries to spy on them.

What are the benefits and challenges of the integration?

The integration of Nym’s mix net with Zcash is expected to bring several benefits to both projects and their communities. Some of the benefits are:

• Improved privacy and security for Zcash users, who can enjoy the advantages of both shielded transactions and network-level protection.
• Increased adoption and awareness of Nym’s mixnet, which can attract more users and developers to join and support the network.
• Enhanced collaboration and innovation between two projects that share a common vision of creating a more private and decentralized internet.

However, the integration also poses some challenges and limitations that need to be addressed. Some of the challenges are:

• Compatibility and interoperability issues, such as ensuring that the mix net can support the Zcash protocol and that the Zcash wallets can integrate the mix net seamlessly,
• Performance and scalability issues, such as ensuring that the mixnet can handle the Zcash traffic without compromising the speed, reliability, or quality of service.
• User experience and education issues, such as ensuring that the users understand how to use the mixnet and what are the trade-offs and risks involved.

What are the next steps and goals of the integration?

The integration of Nym’s mixnet with Zcash is still in its early stages and requires more research and development. The $150,000 grant from the Zcash Foundation will help Nym hire more developers and experts to work on the integration and conduct testing and auditing. The grant will also help Zcash provide feedback and guidance to Nym and facilitate communication and coordination between the two teams.

The ultimate goal of the integration is to enable Zcash wallet developers to offer their users the option to use Nym’s mixnet as a default or an alternative way to connect to the Zcash network. The integration will also aim to make the mix net compatible with other privacy-focused cryptocurrencies and applications, such as Monero, Tor, and Signal.

The integration of Nym’s mix net with Zcash is a significant milestone for the field of privacy and cryptography, as it represents a novel and promising approach to protecting users’ rights and freedoms on the internet. The integration will also showcase the potential and value of collaboration and innovation between different projects and communities that share a common vision and mission.