The Ethereum crypto has been in the news a lot in recent weeks. The reason? The Ethereum network left its POW consensus protocol to adopt the POS one. More than a simple change of letter, this migration is important from an environmental point of view. The pressure is now on other cryptos to make the same move. Let’s see which ones.
Migration to POS, an environmental issue
POW (“Proof-Off-Work”) refers to the consensus protocol used by blockchain to validate transaction blocks. So this protocol is mainly related to mining activity. The POW model is the oldest. Bitcoin, the world’s first crypto, is using it that way. If POW is an effective model, it is far from effective. Concretely, the same result could be achieved with more energy sobriety.
In fact, a blockchain that works on a POW model it competes with all the miners in its network. So all miners need to use very large computing resources. The first person to find the “mathematical solution” (called proof of work) validates the block and offers a reward.
The POS model is very different. Miners are selected based on the amount of crypto they stack. There is no no “direct” competition between minors. For miners, the goal is not to have the largest computer arsenal but to participate as much as possible in the operation of the network through staking.
In September, the Ethereum network managed to complete its long-awaited transfer. “The Merge” was successfully completed on September 15, 2022 and since then, the Ethereum blockchain has used the sober POS model. With this migration, the developers say that the energy consumption of the network will decrease by 99.9%. It’s not trivial, right?
Ethereum co-founder ‘hopeful’ for POS adoption by Dogecoin and Zcash
Ethereum is the second crypto in the world in terms of market capitalization. Therefore, the cryptosphere and all the developers observed its migration scrupulously. Now that Ethereum is a POS crypto, the question is whether other cryptos will follow suit.
The Dogecoin, the biggest coin meme
As mentioned in a previous article, the Dogecoin is now the second crypto in the world to work on the POW model. In fact, after Bitcoin, Dogecoin is the crypto POW with the largest capitalization. Also, there is nothing unusual in observers who ask the question about a possible migration of Dogecoin. Especially since this issue has been discussed many times in recent years.
As a reminder, Dogecoin is a meme corner. In fact, the development of this crypto was a bigger issue technical challenge nor a genuine desire to create a new corner. Then over the years, this crypto became anchored in the landscape. It must be said that Dogecoin can count on great VRPs like Elon Musk for example! In fact, the whimsical American CEO never misses an opportunity to highlight Dogecoin on Twitter. At the time of writing, Dogecoin is the 10th largest crypto in the world with a capitalization of 8.4 billion euros. The price of the crypto Dogecoin is € 0.06.
So, are Dogecoin developers planning to switch to a POS model? Ethereum co-founder Vitalik Buterin is “optimistic”.
“I am also optimistic that Dogecoin will transition to a Proof-O-Stake model in the near future. » Vitalik Buterin, co-founder of Ethereum
Zcash, crypto that protects your anonymity
For Vitalik Buterin, another crypto may soon move to POS. This is the Zcash coin. What is Zcash Crypto? Simply put, the important feature of Zcash is that it is which protects your denomination for transactions. In this case, it plays in the same court as the crypto Monero (XMR) for example. At the time of writing this article, Zcash is the 53rd crypto in the world with a capitalization of 922 million euros. Zcash crypto price is 60 €.
“I hope Zcash will migrate [sur un modèle de POS]. » Vitalik Buterin, co-founder of Ethereum
At the moment, this crypto uses the POW model. But maybe not for long! At the same time, the Zcash teams did not wait for the Ethereum Merge to ask themselves the question. Already in November 2021, the the firm that led the development of Zcash was considering a move to POS. For her, this change could be achievable “within three years”. To that end, the company announced that they were recruiting “additional talent” and focusing “his time and efforts”.