The incident underscores the critical role of AI in enhancing blockchain security, prompting increased scrutiny and innovation in privacy protocols. AI identifies critical bug in Zcash that could have enabled unlimited counterfeit minting.
Despite a brief recovery, Zcash remains vulnerable to further downside as the recent Orchard pool exploit and whale exits could push the price of ZEC down to $300 again.
Zcash stabilized above support as a whale turned bullish, though traders remained heavily short.
Zcash founder Zooko Wilcox says the proposed Ironwood upgrade will give users immediate, trustless verification that ZEC's circulating supply is sound from the first block of activation.
The Zcash incident underscores the challenges of ensuring transparency and trust in decentralized finance, highlighting potential systemic vulnerabilities. Zcash volume spiked 12-13x before privacy bug went public, Allium Labs reports.
Crypto markets are under pressure ahead of key U.S. inflation data due later Wednesday.
Zcash (ZEC) price traded at around $426 at press time, slipping nearly 10% over the past 24 hours as traders continued to digest the recent market-wide volatility. Despite the short-term weakness, the token remains well above its March lows, with investors closely watching whether the latest pullback is merely a correction within a broader uptrend.
On Monday (June 8), privacy coins rose by 4.5%, where Monero increased by 7.6% and Zcash saw an increase of about 7%. However, the sector still trades at over 12% below its price from the beginning of the month amid concerns of a recent hack of the Zcash network.
Zcash developers finalized the Ironwood upgrade plan, targeting late July activation after remediation of a critical Orchard shielded pool flaw. Ironwood adds a new shielded pool, flags legacy Orchard circuits, permits migration change notes and redirects future transactions away from the old pool.
Developers agree on Orchard pool changes and turnstile mechanism to secure ZEC's circulating supply.
$500 no longer looks far-fetched for ZEC as Spot demand returns and retail traders vote for a rally.
Zcash developers have approved a set of consensus rule changes for the upcoming Ironwood upgrade, which is targeted for activation in late July.