The vulnerabilities, discovered by Halborn in a 2022 audit of Dogecoin, were first disclosed to ECC and contributors to other affected networks on Feb. 14, and more details were relayed in a Feb. 17 call. ECC initiated our security process immediately and began coordinating with ZecSec.com, the independent Zcash-community-funded security team, and with Zcash Foundation, who analyzed the impact on zebrad, its own implementation of a Zcash node. We also reached out to Horizen, Komodo, and other teams with whom we have disclosure agreements.
Within days, we had zcashd patches ready for third-party testing, but the public releases have been delayed to allow other projects time to complete their own remediations and to allow for coordinated comms, given the sensitive nature.
Halborn found that the bugs could allow an attacker to utilize peer-to-peer network messages to fill the memory of a node and crash it. By crashing other people’s mining nodes, an attacker could potentially reduce, by around one half, the amount of hashpower they would need to mount a 51% attack on the Zcash network. A successful 51% attack could potentially be used to execute a double-spend attack, which could result in users who received transactions from the attackers losing their funds. We have no reason to believe that the Zcash network is currently vulnerable to a 51% attack — with or without the “one half discount” on the attack cost — but out of an abundance of caution, we’ve hardened the zcashd nodes so that they cannot be crashed using this bug.
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Zcash May Be Getting Spammed but the Blockchain Is Doing Just Fine, the Company Behind It Says
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based on this analysis the maximum of ZEC-BTC low should arrive within the next 7-10 days
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the yellow lines represent the accelerating rate of bear flag structures which are build and then completed. during capitulation trends their construction speeds up until a point of maximum price movement vs volatility occurs (a vertical downward cycle abyss, on non-existent market bidding)
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capitulation cycle should reach a climax event soon. current low was 1250, one more rapid drive down looks likely this week
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the next twelve hours are critical, leading into the Federal Reserve rate announcement. If the rate is bearish, it will pull Bitcoin lower and force the final Zcash capitulation. If the rate is bullish, it will let Bitcoin move higher, and it will raise Risk tolerance - meaning that the ZEC low printed down to 0012000
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based on additional chart time - it looks like worst is yet to come. ZEC-BTC is currently drifting at 00126000 on low volume, which means that bears are likely to push it much lower again and claim a range under 0012000 only a positive catalyst would prevent that outcome.
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ZEC-BTC is rallying today with volume, the local bottom appears to be completed. Now we give the next 30-40 days for a mean reversion cycle
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bottom looks good for now, 001500 is the first notable resistance retrace level
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it looks like the worst is behind us. UNLESS this new structure is a large bear flag. if that scenario manifests then ZEC-BTC would drop under 0.000999 in April 2023. say your prayers that we don't lose control
Wow this analysis is gold. Thank you! Fundamentally, do you believe in ZCash as a long term buy and hold investment? In other words, would you spot buy ZEC when the FED rate should turn out bullish?
noam_chom
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@foreignMeerkat66130, Thanks for the compliment. Yes, i believe that at current prices under $40 ZEC is a fundamentally risk advantaged long term buy and hold investment. The downside is probably around $20-25 but I think the upside is around $300 or more. If you are looking at a 2-5 year time horizon I think ZEC is quite favorable today, regardless of what the FED does. Once the FED has officially pivoted from hawkish to neutral to dovish, it is likely that the market will have already repriced ZEC much higher than today.