Electric Coin Company (ECC), a tech company focused on development of the Zcash ecosystem, suggests the cryptocurrency community to switch the project from its current Proof of Work (PoW) model to Proof of Stake as it eliminates the "downward pressure" on the price of ZEC and "adds additional utility for ZEC."
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In a new blog post, the company describes the advantages behind the PoS algorithm so that the community might eventually decide whether the project should move to a new class of consensus mechanisms or not.
ECC emphasizes that with PoS the network is more decentralized as it becomes more "attack- and capture-resistant."
"In PoW mining, only the biggest and most well-funded mining operations can consistently turn a profit. Smaller participants are driven out," the company said.
However, the Zcash community seems to be divided on the matter. Some wonder if the exchanges get more control over the coin as they are the biggest hodlers; others say that Zcash should deploy PoS with shielded-only staking pools, so that most of the tokens will be shielded.
ECC admits that such decisions are beyond its jurisdiction as the ecosystem's changes are determined by the Zcash community.
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