Coinbase has issued a warning to its customers in regards to the danger of mining pool centralization on the Zcash (ZEC) community.
In keeping with Coinbase, the mining pool referred to as ViaBTC alone has gained greater than 51% of the community’s hashing energy, which may pose a critical risk to the safety and integrity of the blockchain.
Zcash is a privacy-focused cryptocurrency that makes use of proof-of-work (PoW) consensus mechanism to confirm transactions and generate new cash. PoW requires miners to compete to resolve advanced mathematical issues utilizing their computing energy.
Nonetheless, if a single miner or mining pool controls greater than half of the community’s hashing energy, they will doubtlessly manipulate the blockchain in varied methods, similar to performing double-spending assaults or censoring transactions.
Coinbase Declares Precautions In opposition to Hazard in Zcash Mining Pool
Coinbase’s Blockchain Safety crew says it continually screens the hash energy distribution of the PoW networks it helps and implements acceptable measures to guard its customers from potential assaults. In response to the detection of ViaBTC’s dominance over Zcash’s hashrate, Coinbase took the next steps:
- Zcash affirmation requirement has been elevated to 110 blocks, which means customers must wait roughly 2.5 hours for his or her deposits to be confirmed. This reduces the chance of double spending or fraudulent transactions.
- The change switched Zcash trades to limit-only mode; Because of this customers can solely place restrict orders, not market orders. This may scale back the impression of any surges brought on by potential assaults.
- Coinbase has held talks with Electrical Coin Firm, the crew behind Zcash, and mining pool operator ViaBTC to deal with issues and supply suggestions to cut back the chance of a 51% assault. Coinbase has expressed hope for a extra decentralized Zcash mining and mentioned it helps each events’ efforts to attain that purpose.
*This isn’t funding recommendation.