Zcash tokens gain 31% after protocol transition to proof of stake

The 65th largest digital token by market cap, Zcash (ZEC-USD), surges 31% since transitioning to a proof of stake protocol from proof of work, according to the coin's main developer, Electric Coin Company, in a release from Nov. 19. Proof of stake, a protocol designed as an alternative to proof of work, is used to mine or validate block transactions based on how many coins are held. "Benefits include the reduction in downward pressure on the price of ZEC, as most miners immediately liquidate ZEC for BTC or fiat today," the company says. Unlike proof of work protocols - the original consensus algorithm in blockchain tech - proof of stake does not incentivize extreme amounts of energy consumption. "Other benefits of moving to proof of stake which include the reduction of the ZEC energy footprint, providing a possible path to on-chain governance mechanisms, and support for interoperability by addressing problems with proof-of-work transaction finality,"