Zcoin, a cryptocurrency that focuses on anonymity and privacy with the implementation of the Zerocoin protocol, released an official statement pertaining to the Zerocoin vulnerability discovered by the team. The announcement stated that the vulnerability was found in the protocol itself and that it had affected all Zerocoin implementations.
Zerocoin protocol was first introduced as an extension to the Bitcoin protocol. This protocol was proposed by Matthew D Green, a Professor at John Hopkins University, to improve the anonymity of Bitcoin transactions.
The announcement read,
” We disclosed the part of the Zerocoin proof that was flawed to the above mentioned teams and how the forgery worked on a high level. We also informed Ian Miers, one of the authors of Zerocoin who also disclosed it to Matthew Green”
The report further stated that the vulnerability had resulted in the creation of a “forged coin”, which amounts to below 1 percent of the Zcoin’s circulating supply. It was not a code flaw, but a cryptographic flaw “in one of the proofs in the Zerocoin protocol” that has been present since the very beginning. This means that any project that has implemented the Zerocoin protocol could be susceptible to an attack as well.
This vulnerability has resulted in the project’s team deciding to opt out of the protocol and shift to Sigma, with the Mainnet transition timeframe noted to be around six weeks. The report stated that further details on the cryptographic flaw would be released later on, including the number of coins forged.
Florian, a Bitcoin Maximalist, said on Twitter,
“A new vulnerability fundamentally breaks zerocoin security. Watch out for any zerocoin related announcements in the next few days. Don’t trade OTC. PIVX, VEIL, ZCOIN and many more projects affected. It’s estimated that this can’t be fixed.”
The user further added,
“Feel free to scream fud. I’ll make a mental note and get back to you in a month when we have all the details and actually understand the full impact. My educated guess is that it’s bad. Really bad. Happy to be wrong, but I doubt it.”
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Tron’s Justin Sun claims stablecoins will be key to cryptocurrency development
The Justin Sun-led Tron has been in the news multiple times recently, thanks to its regular updates and noticeable price hikes. The CEO has also played a very active role in promoting the cryptocurrency, as exhibited by his recent AMA on Periscope.
Sun focused on how the initial success with protocol governance in the Tron ecosystem paved the way for future developments in the blockchain. The CEO stated,
“Tron had 27 Super Representatives passing 17 new protocols out of which 10 were voted in and accepted. Tron is also the third blockchain after Ethereum to be associated with the stablecoin Tether.”
Justin Sun further opined that 2019 was the year of the stablecoins and that inked assets will be a key focal point when it comes to future developments. He believes that the stablecoin system is the ecosystem in which centralized finance will be taking off. Sun added,
“We will be collaborating with more parties to boost Tether USDT use cases in the TRX ecosystem.”
The Tron Foundation had launched Tether on the TRX blockchain in April to much fanfare, with Tron tweeting,
“Today #USDT is launched on TRON’s blockchain. $USDT is issued by @Tether_to on the #TRON network based on #TRC20 protocol. There will also be a total reward of 20 million $USDT for 100 days. $USDT will be fast, free and smart! #TRX #BTT”
This program was later postponed due to certain discrepancies that came to light post the Tether-Bitfinex episode. Another topic touched on by the Tron CEO was the much-celebrated BitTorrent, which has come a long way since its acquisition by Tron in 2018. Sun admitted that BitTorrent was ‘integral’ to the overall growth of Tron’s development cycle. BTT recently completed its fifth airdrop on June 11, right after the Tron blockchain had breached the 10 million mark in terms of block height. The BTT airdrop involved the transfer of close to a billion tokens which were sent as a reward to TRX holders.
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