ZODL Founder Criticizes Zcash Crosslink Update

The founder of ZODL, one of the primary developers of the Zcash ecosystem, has publicly criticized the Crosslink update proposed by the project, which aims to integrate hybrid consensus mechanisms inspired by Bitcoin and Solana. This opposition, revealed on October 25, 2026, comes as Zcash (ZEC) seeks to reconcile privacy and scalability, a balance that could influence investor perception and the market dynamics of privacy-focused cryptocurrencies. Context Zcash (ZEC) is a cryptocurrency launched in 2016, designed to offer confidential transactions through advanced cryptographic proofs, zk-SNARKs . Unlike Bitcoin, whose ledger is entirely public, Zcash allows users to hide transaction details, a feature prized by actors concerned about their anonymity. The US-based project has long relied on a Proof-of-Work (PoW) consensus mechanism, similar to Bitcoin's, but is now facing scalability limits: its blocks, generated every 75 seconds, struggle to compete with blockchains like Solana, where transactions are finalized in less than a second. The Crosslink update, relaunched in 2024 by Shielded Labs after being abandoned by ZODL in 2021, proposes a major overhaul of the protocol. It combines the security of PoW with a Proof-of-Stake (PoS) layer to accelerate block finalization, while introducing parallelization mechanisms inspired by Solana. This approach, however, divides the community, particularly regarding the trade-offs between speed and privacy. Meanwhile, Zcash is preparing the deployment of its Network Upgrade 7 (NU7) update on November 5, 2026, which will triple the block generation speed, though it will not reach the performance of the fastest blockchains. The Facts On October 25, 2026, Josh Swihart, founder of ZODL and former CEO of the Electric Coin Company (ECC), expressed his opposition to the Crosslink update in an interview published by AMBCrypto. Here are the key elements, attributed to their sources: ZODL's Position : Swihart described the proposal as « not good for Zcash » , arguing that the speed gains do not justify the privacy risks. He added that the project, initiated by ZODL in 2021 before being abandoned, was relaunched by Shielded Labs in 2024 without « broad support » within the ecosystem (source: AMBCrypto, 10/25/2026). Technical Arguments : According to Swihart, adding a PoS layer would introduce unnecessary complexity and new security assumptions, without guaranteeing that transaction finality would be significantly improved. He reaffirmed his preference for Nakamoto consensus (pure PoW), judging that a chain fork was unlikely due to a lack of interest (source: AMBCrypto). External Reactions : Mert Mumtaz, CEO of Helius and a privacy advocate, called the proposal an "awful idea" on X, without providing further technical details (source: AMBCrypto). Timeline and Governance : The Crosslink update is still in the prototype and community consultation stage. Its adoption would require a formal vote via a Zcash Improvement Proposal (ZIP), with no announced date for this process. In contrast, the NU7 update, which will reduce block time to 25 seconds (down from 75 currently), will be activated on the mainnet on November 5, 2026, according to the Zcash Foundation (source: AMBCrypto). Market Data : Per CryptoScore Pro data as of October 25, 2026, at 20:04 UTC, ZEC was trading at 1,212.92 USD, up 0.76% over 24 hours and 12.25% over 7 days. Its market capitalization reached 20.62 billion USD, with a daily volume of 548.54 million USD. The Total Value Locked (TVL) stood at 3.13 million USD, a modest figure compared to other privacy projects like Monero (XMR), whose TVL is not disclosed (source: CryptoScore Pro). Several pieces of information remain undisclosed or uncertain: the AMBCrypto article does not specify the number of developers or nodes supporting or rejecting Crosslink, nor the results of the update's performance tests. Furthermore, CryptoScore Pro data does not provide details on institutional flows or miner positions, two key actors for the adoption of the proposal. Understanding Key Concepts Proof of Work (PoW) and Proof of Stake (PoS) Proof of Work (PoW) is a consensus mechanism used by Bitcoin and, until now, by Zcash. Miners solve complex cryptographic problems to validate transactions and secure the network in exchange for cryptocurrency rewards. This system is renowned for its robustness, but it consumes a lot of energy and limits transaction throughput. Conversely, Proof of Stake (PoS), adopted by Ethereum since 2022, relies on validators who "stake" their tokens to participate in block validation. This model is more energy-efficient and allows for faster transactions, but it introduces new risks, such as the concentration of power in the hands of the largest holders. Concrete example: Bitcoin, using PoW, processes about 7 transactions per second, while Ethereum, having switched to PoS, handles between 15 and 30. The Crosslink update proposes to combine both for Zcash, using PoW for security and PoS to accelerate block finality. Transaction Finality Finality refers to the moment when a transaction is considered irreversible on a blockchain. In PoW systems like Bitcoin, finality is probabilistic: the deeper a block is buried under other blocks, the harder it is to modify. In PoS, finality can be deterministic, meaning instantaneous or near-instantaneous, as on Solana, where transactions are confirmed in a few hundred milliseconds. Zcash, with its 75-second blocks, offers a practical finality of 1 to 2 minutes, a delay deemed too long by Crosslink supporters, who aim for finality of less than 10 seconds. Zcash Improvement Proposal (ZIP) A ZIP is a formal document describing a proposed modification to the Zcash protocol. Inspired by Bitcoin Improvement Proposals (BIP) and Ethereum Improvement Proposals (EIP), ZIPs follow a community governance process: they are first discussed, then submitted to a vote by ZEC holders or network nodes, before being…