Zcash (ZEC) is making efforts to restore trust in its privacy-focused network after a major panic Triggered a sharp sell-off in the market. After prices collapsed by more than 50% in ZEC, developers moved quickly to patch the network vulnerability. They now propose a new system designed to help users independently verify the circulating supply of cryptocurrency and establish network security protocols.
Zcash Price Rebounds After Scalping Panic and Ironwood Proposal
Last week, Z Cash suffer A sharp decline of more than 50%, falling to $ 250 after reports of… Serious fake error In Orchard’s own zero-knowledge proof circle spread throughout the market. The incident alarmed investors and contributed to the liquidation of $116 million across the market.
It is worth noting that there was a defect find out By Taylor Hornby, Security Researcher, using the AI Auditing Framework powered by Claude Opus 4.8. The developers said that the vulnerability could exist Allowing an attacker to generate fake ZEC tokens Inside the orchard pond without revealing it.
Despite the sharp sell-off and price collapse that followed the news, the ZEC price recovered some of its losses after the developers issued an emergency fix. CoinMarketCap data shows the cryptocurrency rebounded more than 70% to $433 after the Orchard vulnerability was quickly eliminated. Corrected Through a coordinated effort including Zcash Open Development Lab (ZODL) and other ecosystem participants.
While the team successfully fixed the flaw, it is still unclear whether the fake ZEC was created before the patch. This concern is even more alarming because the bug existed within the Zcash network undetected until recently. Although the developers believe the exploit is unlikely, they have also noted it Orchard privacy features They make it impossible for users to check whether any counterfeit tokens have been minted.
To address this issue, Protected laboratoriesIt is a non-profit organization that supports Zcash, and is working alongside the Zcash Foundation, Tachyon Group, Valar Group, and ZODL on a proposal known as Ironwood. The initiative aims to restore users’ ability to verify safety The circulating supply of Zcash Without relying on assumptions about other participants or waiting for money to leave the Orchard pool.
Ironwood’s proposal to restore verification of Zcash supply
It was a new proposal Announce In X’s post dated June 6, in a report written by founder and former CEO of Zcash, Jason McGee, founder of Shielded Labs, and Hornby.
Ironwood’s primary goal is to give every user the ability to independently verify their Zcash supply. Once activated, users running the node will be able to ensure that circulating supplies are not tampered with, the developers said.
The proposal also prohibits any transaction that attempts to do so Minting a new coin In the garden pond. As a result, ZEC will not trade freely within this pool, and funds will only move through a revolving door mechanism.
Ironwood can also provide evidence about whether the vulnerability was exploited during last week’s incident, the report said. When users move funds to a new pool, any would-be counterfeiter will face a difficult choice: either attempt to move the counterfeit coins, risk exposure, or leave the coins behind.
If no additional ZEC attempts to leave the Orchard complex, the report noted, it strongly suggests the flaw was never exploited. If the excess funds actually attempted to exit, they would be effectively blocked and destroyed, preserving the current circulating supply while publicly showing that counterfeiting occurred.
Featured image from iStock, medium from Tradingview.com
Editing process Bitcoinist focuses on providing well-researched, accurate, and unbiased content. We adhere to strict sourcing standards, and every page is carefully reviewed by our team of senior technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
