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- Zcash will move from a proof-of-work to a proof-of-stake consensus mechanism as part of a new three-year roadmap
- Zcash will also have an official wallet and will increase interoperability
- Electric Coin Company said it envisages Zcash being a key player in Web 3.0
Electric Coin Company, the operators of the privacy coin Zcash, announced on Friday that they will move to a proof-of-stake consensus mechanism within three years. The move was one of the major elements in the new roadmap for the cryptocurrency that began life at the end of 2016, with an official wallet also launching next year as the Zcash team works on integrating the coin into Web 3.0. The crypto community clearly liked what it heard as the ZEC coin jumped from $109 to $170 over the weekend.
Zcash Looks to the Future and Web 3.0
In a blog post outlining the changes to the Zcash roadmap, Electric Coin Company said that recent research into the “best way to contribute to the Zcash community over the next three years” was to release its own official wallet “on top of a highly interoperable Zcash protocol that leverages proof-of-stake consensus.” This announcement of course makes Zcash the second protocol to move from proof-of-work to proof-of-stake following Ethereum’s ongoing transition.
Electric Coin Company explains its view of the future of the internet, which it says will see users taking autonomy over their finances on a granular level never before seen. This, it says, will allow ZEC to become “a critical means for economic good and used in solutions that protect privacy and liberties”, adding that “we intend that ZEC will have a central place in the fabric of Web 3.”
Electric Coin Company Lays Out Case for Proof-of-Stake
Electric Coin Company states that the benefits of moving to a proof-of-stake consensus algorithm include “the reduction in downward pressure on the price of ZEC” due to miners not selling once they have mined coins, an increase in utility for ZEC through the likes of “yield generation through staking and a possible path to on-chain governance mechanisms for ZEC hodlers”, as well as the reduced environmental footprint that such a transition will bring.
As well as an official wallet and a switch to proof-of-stake, Zcash will also see increased interoperability, with a potential link up with Cosmos apparently on the cards.