Zcash (ZEC) will move to proof of stake – what does this change for anonymous altcoin?

Zcash will move to proof of stake

The possibility was raised last summer by Zooko Wilcox, the creator of the anonymous cryptocurrency. The latter left the community the choice to decide whether a switch from Zcash to Proof-of-Stake was wise or not.

As a reminder, Zcash currently works with Proof of Work, being a “code fork” of Bitcoin (BTC). No need to recall the criticisms that are currently made of this consensus model, which is sometimes considered too expensive in electricity, and difficult to scale.

Read about it – How does Proof of Work work?

Zcash’s new roadmap

The Electric Coin Company, the entity that manages the altcoin, shared the new roadmap in a post that came out over the weekend. By 2025, Zcash is expected to have fully transitioned to proof of stake.

The network would no longer be secure thanks to minors, as is currently the case, but by the “staking” process. According to Wilcox, Zcash’s move to proof-of-stake will have investment benefits, with staking favoring long-term coin ownership.

But the change is also a matter of reputation, as he detailed last summer:

“A large portion of the population will always refuse to use or accept Proof of Work crypto. […] And for Zcash to reach its potential as a global monetary standard, it needs to be acceptable and useful to as many people as possible. “

More info on the Zcash project (ZEC)

Good news for the ZEC course?

Another advantage according to the Electric Coin Company: if Zcash works with proof of stake, the selling pressure will reduce:

“The benefits include reducing the downward pressure on the price of ZEC, as currently most miners immediately liquidate their ZECs to exchange them for BTC or fiat. “

This is a significant stake: the price of the ZEC is currently at a price 93% lower than its absolute record, which dates from 2016. It had then exceeded 3,191 dollars, but this morning is only worth 207 dollars.

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A rather optimistic forecast?

Will the Zcash network manage to transition to proof of stake in such a short time? As a reminder, Ethereum (ETH) has been entangled for many years in an interminable transition to this consensus model. According to the Electric Coin Company, however, 2025 remains an attainable date:

“We believe that the transition to proof of stake is feasible within three years, if we manage to focus our time and efforts, while recruiting new talent. “

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About the author: Marine Debelloir

Associate Editor 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.
All articles by Marine Debelloir.

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