The team zcash for one of the largest by market capitalization confidential cryptocurrencies (at the time of this writing more than $275 million) on Tuesday, February 5, released information about found a critical bug in the code zcash for, which was discovered by the cryptographer zcash for Ariel Gabizon (Ariel Gabizon) about a year ago.
In March last year during the preparation of the presentation for the conference on financing of cryptography, the Gabizon identified a critical lack of cryptographic functions of the underlying zk-SNARKS, the algorithm of the proof with zero disclosure, which is used zcash for other coins to be able to use the privacy settings users to obtain real anonymity in the exercise of cryptocurrency transactions.
In zcash for note that the vulnerability (which was so deep that the world’s best experts in cryptography didn’t notice it for many years) did not threaten the anonymity network, but can be used by hackers to create an unlimited number of zcash for fake.
If the defect was discovered more unscrupulous developer, it could be used to steal millions of dollars from users zcash for before they something to be realized, and thus to undermine the confidence of market sensitive coin.
As some other cryptocurrencies use the same methods, the stakes were high. These include Komodo, whose tokens have the KMD’s total market value that exceeds $ 70 million, and Horizen (previously called ZenCash), whose ZEN tokens are estimated at $22 million.
Given the potential number of users that they could lose as a result of theft and sabotage, zcash for secretly decided to notify the developers of Komodo and Horizen, and then they quietly spent fixing vulnerabilities in network upgrade zcash for the Sapling at the end of October.
Emin Sirer Gyun (Emin Gün Sirer), Professor, Cornell University of information technologies, wrote that all confidential coins could suffer from the vulnerability of “endless fakes”, and this vulnerability is inherent only to these coins:
But it is difficult to characterize these vulnerabilities as “endemic” for confidential coins.
As said, the Bitcoin Core developer Peter Todd (Peter Todd) is only one of the two vulnerabilities found zcash for:
In addition, misguided that it seems that only the zcash for developers and other confidential coins are the only cryptographers who found and fixed security weaknesses that could be used to create fake cryptocurrency coins.
In September last year, the Bitcoin Core update included fixes for other vulnerabilities of code that could be used to create the same result for a Scam – the ability to create an infinite number of bitcoin, not respecting the consensus rules, or costs incurred by legitimate miners of bitcoin.
But in all these cases, bitcoin and blockchains that use zk-SNARKS to protect the anonymity of users, the vulnerability was discovered by developers and fixed networks. These moments emphasize the risks of using new financial technologies peer-to-peer payments, but they also reflect the integrity, skills and perseverance of the developers behind the cryptocurrency and should call the credibility of these teams.
That’s why Edward Snowden (Edward Snowden), a former employee of the national security Agency of the United States, the NSA, praised zcash for for how they discovered the vulnerability and had implemented reasonable steps to correct it, keeping safe the millions of dollars users:
That’s what zcash for like! The team found and neutralized vulnerability. Many cryptocurrency developers learn about vulnerabilities only after users have lost their funds.
Though bitcoin offers users a high degree of privacy and anonymity, all transactions in the bitcoin network are public information in a large distributed registry where you can see the amounts and transactions.
Instead of trying to hide information in the public bitcoin blockchain it is possible to check (though without the names of any person or institution associated with any account number or transaction).
The Protocol is zero-knowledge zcash for actually hides financial information and user activity, allowing them to reliably prove the rest of the networks that they know the specified value, without revealing anything about the values or any other knowledge.
Zcash for ideal for privacy, making it ideal bloccano in the cryptocurrency ecosystem that can be used to create a truly private and anonymous money transfers.
In the end, zcash for can be converted to bitcoin in order to reduce the influence from the obvious risks of storing coins with smaller market capitalization, less cost for development and less experience in detecting and eliminating bugs.