Proof-of-Stake for Zcash?
Zooko Wilcok mentioned this possible transition from Zcash to Proof-of-Stake in an article published on the site of the Electric Coin Company, the manager of the payment network. The creator of altcoin explains that the company has been wondering about this transition for some time, and that he wants to start the debate on the subject:
“Although many prefer Proof-of-Work (PoW), I think Proof-of-Stake (PoS) could make ZEC more valuable. The advantages are many, and they far outweigh the disadvantages and risks. “
As a reminder, Zcash is a “code fork” of the Bitcoin network (BTC), which itself uses Proof-of-Work. Ethereum (ETH) has meanwhile made the choice to transit to Proof-of-Stake, a long and complicated process which should be completed in the coming months.
👉 On the same subject – Bitcoin Cash ABC (BCHA) renames itself “eCash” and adopts Proof-of-Stake (PoS)
The advantages of Proof-of-Stake according to Zooko Wilcox
According to Wilcox, a possible switch from Zcash to Proof-of-Stake would be good for the price. He explains that with PoW, miners are forced to sell their cryptos to cover the cost of operation, which drives ZEC prices down, while driving the price of electricity and ASICs up. But the PoS would change this model:
“With Proof-of-Stake, stakers can keep their coins and become long-term investors. “
The creator of Zcash also notes that the move to Proof-of-Stake would create a new way of using cryptocurrency, by generating rewards. He believes that the more useful the ZEC, the more it will be demanded by investors.
👉 Discover our presentation of the Zcash (ZEC) project
Ecology, security and decentralization
Zooko Wilcox details other advantages of PoS over PoW. He notes that although he does not personally believe that Proof-of-Work contributes significantly to global warming, the battle of opinion remains important:
“A large portion of the population will always refuse to use or accept PoW-based crypto. […] And for Zcash to reach its potential as a global monetary standard, it must be acceptable and useful to as many people as possible. “
Zooko Wilcox also believes that PoS is more secure, as it allows the destruction of funds used for a large-scale attack on the network, and only these, without penalizing other participants.
On the decentralization side, the creator of Zcash believes that Proof-of-Stake remains “one of the methods, even the most effective method in terms of decentralized governance processes. “. The change would indeed allow ZEC holders to be incorporated into the governance of the Zcash network.
👉 To go further – What are the differences between PoS (Proof-of-Stake) and PoW (Proof-of-Work)?
Electric Coin Company awaits user feedback
The creator of Zcash therefore believes that the move to Proof-of-Stake “would offer a lot of huge improvements for the utility, security and decentralization of the Zcash network”. However, he recalls that such a decision cannot be taken unilaterally:
” [Cet éventuel changement] is determined by the choice of the Zcash community to use or name this software, and the choice of people around the world to accept and value these ZEC coins. “
Zooko Wilcox therefore invites Zcash users and enthusiasts to express themselves on the subject, in order to determine whether this transition would be desirable or not. An AMA should also be planned soon to answer questions from users.
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About the author: Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
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