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Electric Coin Company (ECC), the creator and main developer of the ZCash (ZEC) cryptocurrency, is launching a series of studies to translate the blockchain algorithm into proof of stake (PoS). Now in the network, the blocks are confirmed by proving the work of PoW, which implies dependence on manufacturers of ASIC-miners, causes discontent of environmentalists.
The ECC team plans to release permanent publications on the blog, as the research moves from theory to practice, which may be the reason for the growth of the cryptocurrency rate.
The transition to a PoS algorithm has a number of significant advantages. The new consensus form allows all ZCash owners to earn passive income through staking by delegating coins to validators.
They, in turn, will be freed from the need for constant spending on new equipment. With PoW mining, there is an inevitable race for a hashrate, requiring the periodic purchase of new ASIC miners.
Digital democracy, another plus of the PoS algorithm. The ECC promises to implement a voting system for various proposals and projects, but at the same time firmly states that it is not going to completely decentralize the management of the ecosystem.
In theory, the transition to PoS as a whole will favorably affect the ZEC rate. Blockchain will get rid of the probability of a 51% attack, which will increase security, staking will lead to the “freezing” of coins, whose deficit will raise their value, PoS miners will turn into long-term investors.
The team promises to keep the option of anonymous transfers, increase their security. The restriction on the issue of coins will remain at the same level – 21 million.
#ZCashs #LongTerm #Growth #Driver