Altcoin News

Zcash Records +10% For The Day – ZEC Will Switch From PoW To PoS Soon.

The sharp increase is part of a rally began earlier on Friday after the main developer,  Electric Coin Company (ECC), addressed the possibility of switching Zcash to proof-of-stake.

The enthusiasm around Zcash’s fundamental protocol’s definitive move from Proof-of-Work (PoW) to Proof-of-Stake (PoS) boosted its price by approximately 10% in the last 24 hours.

On Binance, the price of ZEC hit an intraday high of $218.80 USD after surging more than 27% in two days. The cryptocurrency’s upward movement also erased a large chunk of the losses it had suffered earlier this week, following a market-wide correction to the negative.

The price of ZEC increased when the cryptocurrency’s main creator, Electric Coin Company (ECC), said that Zcash’s protocol would be switched from PoW to PoS within three years. The update, according to the organization, would reduce negative pressure on the ZEC price by eliminating miners who “immediately liquidate” the token for Bitcoin or cash.

ZEC Price Will Explode Soon – Bulls Are Accumulating

PoS techniques, as a contrast to PoW, allow a person to mine or validate block transactions based on the number of underlying tokens they own/stake. The so-called “validator” is rewarded in the form of yields in exchange.

Users would be able to stake a percentage of their ZEC holdings into a specialized Zcash smart contract to become validators on the blockchain, according to ECC’s release. As a result of the lockup periods, more ZEC may exit active circulation, compared to its Bitcoin-like fixed supply of 21 million tokens.

Due to the supply cap, Barry Silbert, the founder, and CEO of Digital Currency Group, a venture capital firm, tweeted on Saturday that he will “purchase more” Zcash coins. His tweet was timed to coincide with a sharp surge in the price of ZEC against the US dollar and Bitcoin (BTC).

Despite this, some researchers believe that when PoS is implemented, Zcash will not have a supply cap.

In reaction to Silbert’s tweet, on-chain expert Willy Woo stated that if Zcash can “decide to prolong the dev tax” and “convert to PoS and take out the miners,” he is convinced that the coin does not have a limited supply.

“And that’s ignoring the 2018 inflation flaw and presuming we could in fact audit the supply,” Woo continued, alluding to Zcash’s infamous vulnerability, which could have resulted in the creation of limitless ZEC coins.

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