In the fast-paced world of crypto, privacy coins like Zcash ($ZEC) and Monero ($XMR) are hot topics, especially among degens looking to keep their transactions under wraps. A recent clip from the Degenz Live show on FOMO Hour has sparked discussions, where Mert, the CEO of Helius Labs, laid out why he thinks ZEC has the edge over XMR.

The clip, posted on X, features Mert using a simple analogy to explain the difference. Imagine the classic shell game with three cups and a ball – that's basically how Monero works, but ramped up. Monero uses something called ring signatures, where each transaction mixes your real input with 15 decoys, making it harder to trace. It's like shuffling the cups around so no one knows where the ball is.

But according to Mert, this approach has its limits. "With Monero you're mixing inputs & outputs. You can, in practice, trace those and see the lineage of the transactions," he says. In other words, the data is still there on the blockchain, and with enough effort, someone could potentially follow the trail. He calls this "probabilistic privacy" – there's a chance your transaction could be linked back to you, especially if you're dealing with high-stakes stuff.

On the flip side, Zcash takes a different route with zero-knowledge proofs, specifically zk-SNARKs. Mert describes it as if the ball didn't even exist in the first place. "With Zcash you encrypt everything, there is no information leakage." This means transaction details like amounts, senders, and receivers are completely shielded, providing what he terms "deterministic privacy" – you're private by design, no probabilities involved.

Breaking Down the Tech

For those new to this, privacy coins aim to hide transaction details on public blockchains, which are otherwise transparent like Bitcoin's. Monero's mixing (or "ring signatures") creates ambiguity, but as Mert points out, it's not foolproof. Advanced analysis tools can sometimes deanonymize transactions by looking at patterns over time.

Zcash, however, allows for "shielded" transactions where everything is encrypted. You can prove a transaction is valid without revealing any sensitive info. This is powered by advanced cryptography, making it tougher for anyone to peek in. But it's worth noting that Zcash offers optional privacy – not all transactions are shielded by default, unlike Monero where privacy is mandatory.

Community Reactions

The tweet has garnered attention, with replies debating the merits. Some point out Zcash's trusted setup in its early days as a potential weakness, while others praise Monero's default privacy for better real-world anonymity. One reply even mentioned NeptuneCash ($NPT) as a potential contender building on Zcash's tech.

In the meme token space, where quick trades and anonymity can make or break a play, understanding these privacy mechanisms is key. Whether you're aping into the next big meme or just holding, knowing how your transactions stay private helps navigate the volatile crypto waters.

If you're into degens and crypto insights, check out the full FOMO Hour thread on X for more. What's your take – ZEC or XMR? Drop your thoughts in the comments!