ZEC Pumps on PoS Pivot to Reduce “Downward Pressure,” Edward Snowden says Zcash “Meaningfully Advanced” What Crypto Could Do
The privacy coin has seen a 56% spike in value to record 265% gains YTD, but it is still down 93.5% from its $3,192 ATH hit five years ago.
Electric Coin Co., the development team behind Zcash, reiterated its position on making a shift from proof-of-work (PoW) to proof-of-stake (PoS) and shared a roadmap for the same late last week.
This shift is to regain its users, as, after the introduction of ASIC miners in 2018, the amount of activity on the chain dropped by 80%.
“The best way for ECC to contribute to the Zcash community over the next three years is to release an official ECC wallet on top of a highly interoperable Zcash protocol that leverages proof-of-stake consensus,” said ECC.
Meanwhile, on Monday, renowned whistleblower Edward Snowden while advising against wealthy Venture Capitalists warning against Bitcoin while “hyping centralized garbage-coins” that they have an enormous stake in, also commented on Zcash, calling it a “decentralized, functional chain.”
Zcash also performs its specific and useful purpose of enabling private transactions “extremely well” even years later. “I actually used it back then, and it worked,” he added.
While Snowden is not recommending anyone to buy the coin as he doesn’t see crypto primarily as an investment, he admires that “Zcash meaningfully advanced *what cryptocurrency could DO” given that Bitcoin hasn’t addressed its enormous on-chain privacy problem.
“What I want to see is a world where anyone can pay for anything, anywhere, at any time. That doesn't happen without privacy.”
Zcash revealed its three-year roadmap on Friday, which, while “aggressive” and expansive, the team said is achievable.
In its vision of the future, ECC sees each individual as self-sovereign with no centralized gatekeepers to decide who can participate. And this revolution, according to them, reaches beyond finance.
In the world of web3, ZEC will be “a critical means for economic good and used in solutions that protect privacy and liberties,” said ECC. But for that, they need to make it easy for ZEC to be used as such; its product strategy is being evolved from engineering-driven to market- and user experience-driven.
In this direction, they will release a commercially available wallet on top of a highly interoperable Zcash protocol that leverages PoS consensus.
The wallet will allow ECC to engage directly with ZEC users, expected to release next year. As for the PoS shift, ECC believes this will reduce “downward pressure on the price of ZEC, as most miners immediately liquidate ZEC for BTC or fiat today.”
The team also expects the shift to increase the utility for ZEC through capabilities such as yield generation through staking and possibly on-chain governance mechanisms for ZEC hodlers.
With ZEC going PoS, ECC considers solutions like Cosmos to make cross-chain interoperability more accessible, more quickly.
Meanwhile, the team didn’t include programmability in the roadmap because it believes building interoperable bridges to other smart contracting platforms may be a better and more rapid path to realizing its benefits. As for scaling, they will devote resources to it, but instead of a separate effort, it is woven into user-focused work itself.