Zcash Founder Zooko Wilcox Pushes for Hybrid Proof-of-Stake Upgrade

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The founder of the privacy-centric cryptocurrency Zcash, Zooko Wilcox, is now prioritizing an upgrade to a hybrid proof-of-stake (PoS) system. This announcement comes shortly after Wilcox took on the role of head of product at Shielded Labs, a Switzerland-based organization dedicated to advancing Zcash’s development.

In a blog post published on August 10, Wilcox outlined the need for Zcash to transition from its current proof-of-work (PoW) consensus mechanism, which it has relied on since its inception in 2016.

The motivation behind this shift is multifaceted, but one of the key reasons cited by Wilcox is the economic impact of PoW mining on the cryptocurrency’s value. He explained that the continuous creation of new coins under the PoW system has exerted downward pressure on ZEC’s price. However, Wilcox expressed optimism that this pressure would ease as the rate of new coin creation decreases with the upcoming upgrade.

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Crosslink Hybrid System

The proposed hybrid system, dubbed “Crosslink,” is designed to combine the strengths of both PoW and PoS, aiming to enhance the security and efficiency of the Zcash network. One of the standout features of this upgrade is the introduction of staking, which will allow ZEC holders to participate in securing the network and earn rewards in the process.

This could attract a broader user base, particularly those who prefer the more energy-efficient and potentially more profitable PoS model.

Additionally, the hybrid protocol is expected to bring several technical improvements to Zcash. Among these are faster transaction times, reduced susceptibility to rollback attacks, and the possibility of creating safer two-way bridges to other blockchain networks.

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Despite the promising outlook, Wilcox refrained from providing specific technical details or a concrete timeline for the implementation of the Crosslink protocol. The Electric Coin Company (ECC), the entity behind Zcash’s initial development, first floated the idea of PoS interoperability in 2021.

In a related development, the ECC took to social media platform X on August 8 to announce Wilcox’s transition to Shielded Labs. The post described the move as a significant win for the Zcash community, highlighting the collaborative potential between ECC and Shielded Labs to advance the hybrid PoW/PoS initiative.

Financial Backing

Supporting this ambitious agenda, Shielded Labs has received substantial financial backing from prominent Zcash supporters, including Cameron and Tyler Winklevoss and Ethereum co-founder Vitalik Buterin.

Zooko Wilcox, who stepped down as CEO of ECC in December last year, appears to be reinvigorating the Zcash project with his latest efforts at Shielded Labs. The community and industry watchers alike will be closely monitoring the progress of the Crosslink upgrade and its potential to revitalize Zcash in the coming months.

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