Zcash transition to PoS drives the price of ZEC by 20% in a single day. The Electric Coin Company (ECC) announced the transition of Zcash’s protocol from PoW (Proof of work) to PoS (Proof of Stake) in the next three years.
The Crypto market started its journey in 2009 and the flagship currency, BTC, was the only token representing it. The basic mechanism on which BTC works is Proof of Work. This method requires a lot of energy for mining new tokens and validating the transactions. Too much energy consumption has caused a shortfall of electricity in many countries. Too much energy consumption also raised the issue of global warming. These issues were discussed by the Tesla boss.
Zcash transition to PoS:
Many crypto tokens are making a transition from the PoW to the PoS mechanism. The main developer of Zcash, ECC, has announced the transition of the network from PoW to PoS within the next three years. The ECC team has discussed this transition and how it will impact the active users on the network. Josh Swihart has said:
“There are other benefits of moving to proof of stake which include the reduction of the ZEC energy footprint, providing a possible path to on-chain governance mechanisms, and support for interoperability by addressing problems with proof-of-work transaction finality, among other reasons.”
Zcash transition to PoS has impacted the price of the ZEC to increase by 20% in a single trading day. The cryptocurrency’s move upside also wiped out a big portion of the losses it had faced earlier this week, in the wake of a downside retracement across the crypto market. In my opinion, Zcash transition will be a good move for the network and will help the environment.
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