• Winklevoss backs Zcash, citing privacy and decentralization as vital for a free society amid U.S. regulatory pressures.

  • Zcash to shift from PoW to hybrid PoW/PoS, aiming to stabilize ZEC price and enhance network security.

  • Zcash’s upcoming Crosslink upgrade promises quicker transactions and increased staking demand, boosting ZEC's long-term prospects.

Co-founder of Gemini Exchange Tyler Winklevoss has openly supported Zcash, describing it as one of the "most important and underrated" cryptocurrency initiatives available. Winklevoss emphasized that privacy and decentralization are essential elements of a free and open society. His support comes amidst growing regulatory concerns within the U.S., where privacy coins like Zcash have faced pressure from government institutions.

https://twitter.com/tyler/status/1822741558992543949

Winklevoss's approval aligns with his concerns over governmental crackdowns against the crypto space, evident in recent moves under Operation Choke Point 2.0. But his support for Zcash and Shielded Labs, the organization behind this privacy coin project, signifies his commitment to privacy-focused digital assets.

Zcash's Move to Proof of Stake: Strategic Shift

The privacy coin Zcash is considering moving away from its present Proof-of-Work (PoW) consensus mechanism to a hybrid PoW/PoS system. Zooko Wilcox, head of product at Shielded Labs and a prime figure in the Zcash project, cites improved security and scalability as reasons for the transition

The change aims to solve problems brought on by the PoW mechanism, among them the downward pressures on ZEC's price occasioned by continuous coin creation. A hybrid model could mitigate these pressures, opening up staking opportunities for ZEC holders and further reducing the circulating supply, stabilizing its value.

Financial Support and Development Initiatives

The hybrid PoW/PoS introduction is part of a larger, strategic plan to ensure Zcash's long-term sustainability. Spearheading this effort is Shielded Labs, an organization that has received financial backing from prominent figures within the cryptocurrency space, including Tyler and Cameron Winklevoss, Vitalik Buterin, and the Anoma Foundation.

Shielded Labs has also detailed plans for the "Zcash Sustainability Fund" to ensure the project's continuity. The proposed hybrid system, "Crosslink," aims to alleviate this issue by allowing users to stake their ZEC coins, thus increasing demand and reducing circulating supply. Additionally, the hybrid model would offer improved finality, protecting users against rollback attacks and enabling safer transactions across different networks.

Market Performance and Future Outlook for ZEC

Since the announcement of the incoming changes, Zcash's native token, ZEC, has rallied significantly. It surged by over 35% in value after the news of the transition to PoW/PoS. However, despite this increase, ZEC remains much lower than its all-time high of $3,191 achieved in October 2016. The number of new coins created is expected to decrease, and the associated demand from staking might affect ZEC's market performance. 

Some analysts believe that under the hybrid consensus model, conditions for ZEC price recovery can be laid out; forecasts thus show prices in the $60 range by early 2025. The cryptocurrency market is volatile, but strategic upgrades in Zcash could lead to a more favourable environment for the token's possible growth.

The post Zcash Gains Support from Tyler Winklevoss, suggests Transition of Blockchain to Proof of Stake appeared first on Crypto News Land.