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If the vulnerability in the Zcash (ZEC) network was never exploited by hackers, then the funds of all users remain safe, regardless of whether they move them to a new pool or not. This was stated by Ripple's emeritus chief technology officer, David Schwartz, commenting on the current crisis around the privacy coin.
According to him, coins "forgotten" on old addresses will simply remain in a lonely and abandoned pool, but will stay fully accessible to their owners. With this thesis, Schwartz highlighted the main paradox of the current crisis around the privacy cryptocurrency.
The recent discovery of a critical vulnerability in the private Orchard pool split the crypto community. The bug theoretically allowed attackers to mint fake ZEC unnoticed. The problem is that, because of Zcash's strict confidentiality, even the developers themselves cannot now independently verify whether hidden coins were actually created.
During the discussions, market participants suggested that if Orchard were closed and everyone moved to a new pool, the presence of any remaining "excess" funds would prove that no exploit had taken place. Critics of the idea argued that forced migration would harm the interests of those who failed to move their assets in time.
David Schwartz entered the debate and explained that consensus rules protect every owner, meaning users who ignore the migration will not lose their money, but will merely end up in an isolated pool.
Inside Zcash's recovery plan
Although Zcash creator Zooko Wilcox admits that proving whether an exploit did or did not happen is now impossible, developers from Shielded Labs are urgently trying to restore trust in the coin. The market has already reacted harshly, with ZEC collapsing by more than 40% amid the panic.
To stabilize the situation, Shielded Labs and other ecosystem participants proposed a network upgrade plan called Ironwood:
- Orchard isolation: The old pool will be prohibited from creating new outgoing transactions, which will stop the potential generation of fake coins.
- Turnstile accounting: A control system will allow strict tracking of all coins leaving Orchard.
- New pool: A fresh protected pool will be launched for safe user activity.
ZODL founder Josh Swihart allowed that this solution could be included in the major NU7 upgrade as early as the end of July. Shielded Labs promised to release a detailed breakdown of this plan next week.
U.Today Editorial Team
Dan Burgin
