Launched in 2016, Zcash (ZEC) was the first privacy coin to use zero-knowledge proofs to guarantee transaction privacy. Zcash is moving to Proof-of-Stake (PoS) in the coming years. Let's have a look at why this prominent privacy coin has decided to move away from good old Proof-of-Work. Is this part of a larger trend?
The Merge Inspires Other Coins
Ethereum's successful Merge may not have done great things for the price (yet?) but its impressive transition to PoS is making waves. Not a tsunami maybe, but a slowly rising tide of coins that are currently Proof-of-Work (PoW) who want to dip their toes in looking into a transition to Proof-of-Stake. There are rumors (heavily disputed) that Dogecoin might make a similar transition (see below).
It is not just conjecture that Ethereum's transition is inspiring other coins to transition. Co-founder of Ethereum Vitalik Buterin even encourages this development. Vitalik: “I hope that Zcash moves over. I am also very hopeful that Dogecoin is going to evolve over to PoS at some point soon. As PoS matures I would expect it to increase in legitimacy over time.”. Buterin expressed this view at Messari Mainnet 2022.
Zooko Wilcox, CEO of the Electric Coin Company that oversees Zcash's development, has echoed this sentiment. At the same conference, he admitted the Zcash Foundation had been eager to see what they could learn from Ethereum and were positively surprised (see quote above).