Viabtc Mining Pool Controls Over Half of Zcash Hashrate
A concerning development has occurred in the world of cryptocurrency, specifically within the Zcash network. Viabtc, a mining pool, now controls 53.69% of the total Zcash hashrate as of September 19, 2023. This dominance poses a significant threat to decentralization and network security.
Coinbase Takes Action
Coinbase, a major cryptocurrency exchange, quickly responded to this issue by implementing measures to protect its customers’ assets. They moved the Zcash markets to a “limits-only state” and increased the confirmation requirement to 110 blocks. While this helped reduce the risk of fraudulent transactions, it also increased deposit time from 40 minutes to about 2.5 hours.
ECC’s Solution: Trailing Finality Layer (TFL)
Electric Coin Co. (ECC), which oversees the Zcash project, proposed a solution called the Trailing Finality Layer (TFL). This innovative approach aims to introduce finality into the Zcash network and improve security and decentralization. ECC is also exploring a transition to proof-of-stake (PoS) as one of its top priorities.
The Importance of Community Involvement
Community involvement is crucial in addressing the lack of finality and potential changes in consensus mechanisms. The input and consensus of community members and stakeholders are vital in making decisions about network upgrades and implementation of solutions like TFL or transitioning to PoS.
Challenges and Opportunities for Zcash
While Viabtc’s dominance presents immediate concerns, it also provides opportunities for innovation and adaptation within the cryptocurrency landscape. As ECC works on developing the TFL prototype and exploring PoS possibilities, collaborative efforts and rigorous analysis will be necessary. The industry can learn from Zcash’s experience, and the solutions developed for Zcash can inspire innovations in other cryptocurrencies.
Hot Take: Addressing Viabtc’s Dominance in Zcash Hashrate
The dominance of Viabtc in the Zcash hashrate raises significant concerns about decentralization and network security. However, proactive responses from Coinbase and proposed solutions like the Trailing Finality Layer (TFL) demonstrate the industry’s commitment to addressing this challenge. Community involvement is essential in shaping the future of Zcash and ensuring robustness and longevity. As discussions continue and innovations emerge, the cryptocurrency community remains focused on maintaining decentralization and security in the face of evolving challenges.
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