Ethereum (ETH), the world’s second largest cryptocurrency by market cap, is moving from a Proof-of-Work (PoW) mining consensus mechanism to a Proof-of-Stake (PoS) mechanism with the Ethereum 2.0 version.

The major upgrade decision was made in light of the increasing scalability issues on the Ethereum blockchain.

Now another cryptocurrency is considering the migration of the PoW mining mechanism towards PoS.

The possibility of converting the digital currency “ZCash” to quota instead of mining:

The privacy-focused cryptocurrency ZCash (ZEC) could become the next digital currency to move from mining to staking.

ECC, the company behind the development of ZEC, posted a blog on Tuesday titled:

Read:The developers of the “ICON” project announce the creation of an integration protocol with the “Polkadot” system

Should Zcash switch from Proof of Work to Proof of Stake?

In the blog post, the company talked about the various aspects of the quota mechanism and how it would help the ZEC digital currency become more valuable.

The company made it clear that the decision to conduct immigration and transformation will be in the hands of the community only, but they believe that the quota mechanism will help the Zcash blockchain become more useful and valuable.

As a quote from the blog:

While there are many who prefer a Proof of Work (mining) mechanism, I believe PoS will make ZEC more valuable to more people!

The benefits are great, and they far outweigh the drawbacks and risks.

Switching to PoS will remove downward pressure on ZEC price and add additional benefit to the ZEC project.

Increasing demand for PoS after the spread of doubt and uncertainty in the Bitcoin mining mechanism:

The recent suspicion of Bitcoin mining using the Proof of Work (PoW) algorithm has played a prominent role in other blockchain networks wanting to switch to PoS.

Read:Bitcoin soars to $22,000 with weekly close above $21,000

ECC also cited that this is one of the reasons why it was also considering the possibility of shifting towards privatization.

Noting that they believe that PoS offers much better security and performance at a lower cost.

ECC has claimed that the quota will allow coin holders to participate more in the project as opposed to miners who carry their rewarded coins and pull away.

The company added that with the PoS mechanism, miners will not have to sell as they can participate and turn into long-term investors. The company stated in this context:

Read:Privacy Browser “Brave” Expands and Supports Blockchain Networks Other Than Ethereum…Details Here

With PoW mining, miners must sell the coins they earned to pay for (electricity and ASICs).

This means that there is a constant downward pressure on the price of ZEC and a corresponding upward pressure on the price of electricity and ASICs.

In PoS, pledges can hold the coins they have acquired (“ZEC holders”) and become long-term investors.

This would add fuel to the fire of our common mission.

The above remains just a suggestion until now, and the shift has not been officially announced or not, until the currency community unanimously agrees.

Read also:

Cardano (ADA) price rises amid talk of imminent launch of smart contract jobs

70% of Ethereum nodes are ready for the next Ethereum fork