Zcash will migrate from Proof of Work (PoW) to Proof of Stake (PoS) to increase interoperability and continue to drive Web3 development.
Electric Coin Company (ECC), the main developer of the cryptocurrency Zcash, published the new roadmap for the development of this cryptocurrency in the next 3 years, announcing profound changes in its consensus protocol in order to increase scalability and interoperability. According to the publication, Zcash will migrate from the consensus protocol Proof of WorkPoW) a proof of stake (PoS) to take full advantage of the potential and opportunities that proof of stake provides.
The new consensus protocol will make Zcash (ZEC) a highly scalable, interoperable, and accessible cryptocurrency, and will help ECC continue to drive the development of Web3, the new Internet where every individual will be sovereign and the owner of their data and information.
ECC will also build its own official digital wallet to add new capabilities and features, in order to provide a new and optimal top-notch user experience to all ZEC holders globally. The company has been planning its new developments based on research conducted on the crypto industry, community, and market opportunities, ECC reported.
Zcash (ZEC) Zcash is one of the most important cryptocurrencies that exist in the crypto industry today. Its development, decentralized and open source, is focused on providing maximum security and providing a high level of privacy and anonymity to its users, in order to protect their financial privacy rights. Zcash implements the following Zero Knowledge Protocols (FPC) and offers its users the ability to send common or completely anonymous transactions to the network.
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Zcash, staking, governance and more
By migrating Zcash from PoW to PoS, Electric Coin Company will be able to integrate new functionalities that optimize and drive adoption of the protocol and its cryptocurrency. For example, PoS will enable new governance, staking, or staking y Liquidity mining in ZEC and will facilitate interaction with decentralized finance protocols (DeFi), among many other things. Also, as indicated by Josh Swihart, ECC's SVP of Growth, the migration to the PoS protocol will help ZEC reduce its carbon footprint and environmental impact.
However, while this migration will open the door to a world of new possibilities and opportunities for ZEC, ECC wants to focus primarily on interoperability between chains as a critical element for the development of Web3.
Web3 and ZSA protected assets
Zcash developers want to make this network and cryptocurrency one of the most prominent and relevant in the Web3. ECC reported that the new 3-year roadmap will add new capabilities to Zcash to power the next generation of the Internet, where people will once again be completely autonomous and free.
In its statement, ECC stressed that the distributed capabilities of Web3 will allow people to develop in a financial and economic environment full of opportunities and alternatives, which will be focused on protecting privacy and freedoms.
“In Web 3, a person can bypass banks and their underwriters and borrow from dozens, hundreds, or thousands of people around the world who choose to lend assets at a rate they all agree on.”
To help make this happen, ECC is working on improvements that will streamline and facilitate the use of ZEC within and across this new interoperable and inclusive ecosystem. As the company says, its mission is to empower people through new technologies, to restore their financial and economic freedom.
ZEC rose more than 20%
The price of ZEC, the cryptocurrency of Zcash, grew by more than 28% in the last hours, driven mainly by the news of the migration to the PoS protocol and by the developments announced in the new ECC roadmap. The price of ZEC reached a value of $222 per unit yesterday, although it is still a long way from its all-time high price. In October 2016, the price of ZEC reached a value of $5.941; its highest price seen so far.
ZEC’s market cap is close to $2.610 billion at the time of writing, making it the 72nd largest cryptocurrency in the industry.
Finally, Zcash's migration from PoW to PoS was proposal by ECC developer and CEO Zooko Wilcox in early August as an alternative to stabilize and grow the price of ZEC. Generally, ZEC miners immediately liquidate the cryptocurrency mined by Bitcoin or fiat money; so through PoS, validators would have to block and hodling ZEC to be able to perform its functions and validate blocks on the network.
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