The latest question on the lips of blockchain enthusiasts is "when Proof of Stake (PoS)?" With the recent migration of Ethereum to the PoS consensus mechanism, Vitalik Buterin Ethereum's founder has shared his opinion suggesting that all networks (including Zcash) should move to PoS. But then transitioning to PoS has always been in the blueprint of the Zcash network. However, there are multiple factors to consider when transitioning to the PoS consensus mechanism. In this article, we will explore some of the benefits of Zcash as a privacy-centric blockchain transitioning to PoS and its impact on adoption and inclusion. 

What is Proof of Stake (PoS)?

The proof-of-stake consensus algorithm allows holders of a cryptocurrency to stake their coins and create their own validator nodes. These validator nodes are used to create new blocks, verify transactions and maintain security within the network. Currently, the Zcash network runs a Proof of Work model which means that the network needs miners who have to compete to solve arithmetic problems and create new blocks using powerful computing gadgets that are energy consuming. But with staking, energy consumption ( an environmental concern) is reduced as holders have to pledge their coins to be used for verifying transactions on the network. The coins are locked up for a period of staking and just like in PoW, stakes get a reward for contributing to the network. 

To validate transactions, the protocol chooses a validator node to review the block when a block of transaction is ready to be processed. It is the duty of the validator to ascertain the accuracy of the transactions in the block. The block is verified and added to the blockchain and in return, the validators receive rewards in crypto for their contribution. To protect the integrity of the network, a validator will lose some of their staked assets as a penalty for proposing the addition of a block with inaccurate information.

Why is there a need to move to PoS? 

Proof of work blockchains require the use of powerful computers or mining rigs to mine solving complex mathematical problems. However, it is expensive and consumes a lot of electricity which is the biggest difference between proof of stake and proof of work. 

Proof of stake is eco-friendly as when verifying transactions, there is no need for heavy computer gadgets.  why is Zcash considering moving to PoS? a lot of the community members have shown support for a pos zcasch , According to Electric Coin Company (EEC), the developers that maintain the ZEC chain, the network is slowly easing into the PoS model. The EEC had earlier in 2021 announced the move to PoS within a 2 year time frame. The network will also work on its cross-chain interoperability and launch an official ECC wallet.  There are also the risks and opportunities associated with such a transition present. For instance, the impact on community engagement, coin distribution, monetary policy, governance et.c. 

The alternative consensus algorithm will also impact across cultures, geography and populations?

Before moving to the PoS mechanism, Zcash is working on ensuring that its issuance rate is preserved and the transition has minimal impact for holders, miners, transactors, validators, and stake delegates.

How will Zcash's move to PoS impact inclusion in Nigeria 

Currently, the Zcash network leverages a PoS mining algorithm that allows miners compete and find new blocks on its chain called Equihash. However, Zcash has revealed in a roadmap post by the ECC that transitioning to PoS will “increase the utility for ZEC through capabilities that include yield generation through staking.” The roadmap also reveals that PoS can aid the Zcash network's move toward onchain “governance mechanisms.” But how will this move impact Zcash users in Nigeria? 

Aid more validators to participate in the governance of the network.

With PoS, more Nigerian Zcash holders can participate as they do not need to purchase high-end computing machines that consume electricity to create new blocks. Electricity is a key determinant in enabling the growth of a PoS network and Nigerians can only afford to run PoW nodes by creating their source of Electricity. For instance, Chinese miners constitute for more than 71% of Bitcoin's total hash rate or processing power from September 2019 to April 2020. However, in 2021, President Xi Jinping pledged that China aims to be carbon neutral by 2060 handing the crack down on Bitcoin mining. By the end of June 2021, experts estimated that half of the world's Bitcoin mining centers and 90% of China’s had gone offline with the USA experiencing a rise in mining Centers. For a country like Nigeria, the move to PoS will be highly beneficial energy wise. 

Increase inclusion and reduce cost of participation. 

Since Zcash holders in Nigeria no longer have to mine, it will cut down entry cost and enable easy access to becoming a validator. More Zcash holders can stake and join stalking and validator pools with ease. The technical know-how of how to set up a mining rig will also be eliminated. 

The Future of Zcash 

At the Messari Mainnet 2022, Vitalik Buterin shared his view on the future of Ethereum stating that the network would infuse privacy into the [Ethereum] base layer in the next five years. However, Zcash founder Zooko Wilcox-O’Hearn who was also in attendance disagrees, noting his scepticism, "I don't know if you're right that [the attempt to] re-decentralise the block producer ecosystem is going to be successful." Zcash is focused on ensuring a future of privacy following the crack down on Tornado Cash already. The network already had the privacy-centric technology layer and the culture that can make a difference. As Zcash continues to develop its network's offerings, more developing nations like Nigeria would look forward to carrying out private transactions using Zcash.

IN PRIVACY WE TRUST !!!

PRIVACY IS NORMAL !!!

PRIVACY IS A HUMAN RIGHT !!!