Coinbase takes precautions as mining pool captures half of Zcash hash rate
Crypto trade Coinbase has applied precautionary measures in response to a single mining pool taking management of 53.8% of the hash charge on the proof-of-work blockchain powering the privateness coin Zcash.
Any more, the trade would require 110 block confirmations earlier than it confirms a deposit of ZEC, in response to a weblog publish. This will increase the deposit time from roughly 40 minutes to round 2.5 hours. The aim is to cut back the danger of double spending.
It has additionally moved its Zcash buying and selling pairs into “restrict solely” mode, which means merchants can’t place market bids. The trade said this is able to decrease the impression of any volatility — doubtless within the occasion of huge gross sales made as a part of a double-spend assault.
Coinbase additional reached out to Electrical Coin Firm, the creator of Zcash, and the related mining pool, ViaBTC, with its issues. “We shared our issues across the dangers of mining centralization and supplied suggestions for numerous choices that both get together may implement to cut back the danger of a 51% assault,” the trade stated.
The Electrical Coin Firm confirmed the discussions, including that its proposal to introduce a function to the Zcash blockchain, named the “Trailing Finality Layer,” may tackle the difficulty. This may be a step towards transitioning the blockchain from proof of labor to proof of stake.
A possible 51% assault
ViaBTC at present controls 53.8% of the Zcash hash charge, in response to MiningPoolStats. This means that, in idea, if the mining pool determined to behave with sick intent, it may perform double spending assaults or exhibit different malicious habits.
ViaBTC now represents 53.8% of the Zcash’s hash charge. Picture: MiningPoolStats.
That stated, this isn’t a single miner dominating the community’s hash charge however moderately a mining pool. Such swimming pools comprise quite a few miners who mixture their sources to attain a steadier revenue stream. If the mining pool have been to have interaction in dangerous actions, miners would possibly choose to discontinue utilizing the pool in favor of one other.
