In August, ECC shared its rationale for shifting Zcash from a proof-of-work consensus mechanism to proof-of-stake. Whereas most of ECC is concentrated on the upcoming deployment of Halo and the shielded-by-default ecosystem within the impending NU5 replace, a couple of of us have begun the preliminary analysis section with a purpose of manufacturing a concrete transition proposal to the Zcash neighborhood.
This replace describes the main areas of analysis and open questions we’re investigating. In a subsequent put up, we’ll dive deeper into the continued technical analysis and our preferences.
ECC’s proof-of-stake analysis focuses on key areas that instantly influence the security, scalability, and ease of use for ZEC customers. The next is a listing of areas we’re at the moment reviewing and our preferences inside every space.
- Shielded pockets UX & safety
- Our focus is on sustaining current shielded, cell performance.
- We purpose to allow shielded, cell customers to simply delegate ZEC to earn staking rewards.
- Cross-chain interoperability
- We want protocols with finality over dynamic availability to allow safer interoperability throughout blockchains.
- Proof-of-stake safety
- We want protocols with finality over dynamic availability as a result of we consider the financial ensures of the previous current higher trade-offs for customers.
- We want minimal out-of-band prices to run block choice infrastructure to decrease the associated fee for brand spanking new validators to compete.
- Issuance charge
- We want an issuance charge strictly equal to or much less than the present Zcash issuance charge, which maintains the 21M ZEC provide cap, whereas probably having decrease issuance within the nearer time period.
- On-chain governance
- We want to allow customers to simply categorical their preferences by coin weight in polls anybody can create.
- We want to not enshrine coin-weighted polling to be binding on the protocol or governance layers, and as an alternative to make use of this mechanism as an extra supply of suggestions for governance.
- Decreasing protocol complexity
- We want to solely assist newer shielded-transfer capabilities on the goal protocol, excluding t-addrs, Sprout, and Sapling switch protocols.
- We want to develop an everyday and constant retirement course of to allow Zcash protocol to repeatedly evolve with out accruing extreme complexity.
- We want to depend on a protocol that demonstrates real-world deployment success.
- We want protocols with sturdy theoretical safety foundations.
- We want to make as few alterations to a protocol as potential to assist Zcash.
- We want to pick a goal protocol previous to growing a transition plan.
Our analysis, like all ECC efforts, are guided by our North Star: to ship a world-class consumer expertise for ZEC. This requires modern wallets and consumer interfaces, ubiquitous industrial choices for utilizing ZEC, safety and security (encompassing every little thing from financial design to privateness to protocol and product safety to regulatory readability), steady innovation to evolve with the world, and neighborhood alignment round core values.
Provided that North Star, now we have 4 high-level targets for proof-of-stake product analysis:
- We purpose to enhance ZEC’s place as a number one personal, world, permissionless cryptocurrency within the rising Web3 paradigm, in addition to extending its utility for the real-world financial system.
- We study all design selections with a lens of usability and product-market match for current or potential merchandise that combine ZEC.
- If our proposal is to be adopted by the Zcash neighborhood, it should fulfill and inspire a considerable financial majority of present and potential future contributors.
- We purpose to take care of ECC’s world-class requirements for designing and deploying protected, personal, resilient, permissionless protocol designs and implementations.
- We purpose to pick the perfect “minimal viable” goal protocol, primarily based on the idea that future enhancements may be made to the consensus protocol when essential.
This analysis will finally produce a proposal that recommends Zcash transfer to a proof-of-stake protocol. This proposal may change the broader use case for the ZEC forex and place its underlying applied sciences on the forefront of Web3.
To offer ZEC customers with as a lot data as potential, we will likely be releasing a collection of technical analysis blogs within the coming months. This may give neighborhood members an opportunity to supply suggestions and ask questions on our method, lengthy earlier than we start growing a particular proposal.
By releasing our analysis previous to a proposal, we hope Zcash neighborhood members perceive our imaginative and prescient for the ZEC forex, and why a change to proof-of-stake would profit ZEC’s utility. We consider this transformation will create a greater consumer expertise, extra utility, and extra adoption for ZEC, and stay up for suggestions from throughout the neighborhood.