On Friday, Electric Coin Company (ECC), the developer of the privacy-centric encrypted asset zcash, revealed that the network plans to transition to a proof-of-stake (PoS) consensus. ECC also revealed that the team plans to launch an official ECC wallet and strengthen the cross-chain interoperability of the network.
Zcash transitions from PoW to PoS
The Zcash network currently utilizes a proof-of-work mining algorithm called Equihash, which allows miners to compete to find new blocks on the Zcash chain. In a blog post published on November 19, ECC Announce The network will transition to a Proof of Stake (PoS) consensus algorithm in the next three years. Zooko Wilcox-O’Hearn discusses the network from PoW to PoS Blog post Released on August 3, 2021.
In addition, ECC’s CTO Nate Wilcox also issued a Blog post About the PoS topic one week after Zooko’s post. In a roadmap post published on Friday, ECC explained that the transition to PoS will “increase the utility of ZEC through functions including generating income through pledges.” In addition, PoS can also guide the ZEC chain to the chain. Governance mechanism”, details of the ECC roadmap.
ECC focuses on “reducing Zcash’s energy footprint” — Zcash-based ASIC miners still dominate
The ECC blog post further pointed out that a PoS-based ZEC chain can help “reduce the ZEC energy footprint.” During this year, the PoW consensus algorithm has been criticized a lot about the environmental impact of PoW. The ECC roadmap post added:
We believe that if we can concentrate our time and energy and hire more talents, we can achieve the transition to proof of rights within three years.
Since the news, the value per zcash (ZEC) has risen sharply, rising by 23.6% in the past 24 hours. During the initial launch, the blocks of the Zcash network were processed by miners with graphics processing units (GPU), but in the past few years, application-specific integrated circuit (ASIC) miners have taken over.
At the time of writing this article, Bitmain Antminer Z15, which processes the Equihash algorithm at 420 ksol/s, receives a ZEC reward of $33.44 per day. The operating speed of Innosilicon’s A9++ Zmaster is about 140ksol/s. Using today’s ZEC exchange rate, a daily profit of US$8.13 can be obtained.
What do you think about Zcash’s transition to PoS? Please tell us your thoughts on this topic in the comments section below.
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