Zcash Co-Founder Zooko Wilcox Argues for Transition to Proof-of-Stake | CoinCodex
- Zcash co-founder Zooko Wilcox-O'Hearn is advocating for Zcash to move to Proof-of-Stake
- According to him, PoS would have a beneficial impact on the value of ZEC, expand its userbase and improve its decentralization and security
- Ultimately, it will be up to the Zcash community to approve the transition
Zcash co-founder Zooko Wilcox-O'Hearn advocates for move to Proof-of-Stake
Electric Coin Company CEO Zooko Wilcox-O’Hearn is advocating for the privacy-focused Zcash cryptocurrency to transition from its current Proof-of-Work consensus mechanism to Proof-of-Stake.
Wilcox-O’Hearn laid out a series of arguments in favor of the transition in a blog post published by the Electric Coin Company (the primary developers of Zcash).
One of his main arguments is that it would have a beneficial impact on the value of ZEC, as a switch to PoS would remove the selling pressure in the ZEC markets that’s coming from miners who are covering their operating costs.
Around $300,000 worth of ZEC is mined every day, and Wilcox-O’Hearn estimates that a large part of it is sold. Meanwhile, he argues that users earning ZEC through staking would be more likely to keep their rewards and become long-term Zcash investors, because they wouldn’t have the same pressure to sell their coins.
The Zcash co-founder also argues that PoS would help address the concerns surrounding the environmental impact of PoW, even though he says he doesn’t personally agree that PoW is exacerbating global warming.
Another argument in favor of PoS presented by Wilcox-O’Hearn is that PoS would provide better security for Zcash at a lower cost – according to him, users are effectively overpaying for the network’s security in PoW, because they cannot “credibly threaten to punish defecting miners” - measures such as introducing ASIC resistance impact all miners, regardless of whether they’re acting in the best interests of the network or not. In PoS, on the other hand, slashing allows only the stakers that are acting maliciously to be punished without affecting all stakers.
“The bottom line for me is that switching Zcash from PoW to PoS offers many huge improvements to the utility, security, and decentralization of the Zcash network and to the utility and demand for the ZEC coin.”
The Zcash co-founder’s suggestion to move to PoS has already been met with responses from some notable members of the cryptocurrency community. This included IOHK CEO and Cardano founder Charles Hoskinson, who suggested that Zcash should use the Ouroboros Crypsinous protocol, which enables privacy-preserving PoS.
It will ultimately be up to the Zcash community to decide whether they approve of a transition to PoS or not. However, Wilcox-O’Hearn is widely regarded as the leading voice of Zcash, and his endorsement should spark a serious debate, regardless of the final outcome.
Zcash is one of the largest privacy-focused cryptocurrencies on the market today. However, its market cap of $1.4 billion is still considerably smaller than that of Monero, the most popular privacy coin ($4.1 billion).
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