Blockchain integrity and market trust


About zCash currency stability and a possible risk scenario.

The blockchain integrity, because of the secret transactions, cannot be checked. Total number of ZECs will be unknown. There is a theoretical number of blocks mined, but no way to be sure there are no flaws.

This risk is well known but I was thinking about another risk that is purely psychological:

Even if the code is 100% secure, the market could crash because of TRUST (or lack thereof). At some point, if ZCash is successful, there will be markets Highs and Lows, like any other coin. For every downward movement, TRUST about the currency is what makes it rebounce. Trust about its intrinsic market value.

→ If a large downward movement is observed on ZCash at some point, it might lead to rumors of integrity failure or a hack of the blockchain, and nobody will be able to prove it wrong. That could lead to a self sustained crash and final loss of trust which could never be recovered.

What do you think of that scenario? Why it could, or could not happen?

PS: secondary question is - can the whole thing can be formally proved as mathematically flawless? (concept and implementation)

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There’s something called the “Trusted setup” that @zooko mentioned. I’m not 100% sure if any information has been released about this.