Coinbase Increases Zcash Confirmation Threshold To Mitigate Risk Of Network Manipulation

According to Coinbase, this precaution was being taken to lessen the possibility of network manipulation. Zcash is a cryptocurrency that focuses on anonymity, and ViaBTC presently controls the majority of its mining pool. Due to this, ViaBTC has the ability to influence the Zcash network in a variety of ways, such as by double spending coins or limiting transaction volume.

The confirmation level has been raised by Coinbase to make it more difficult for ViaBTC to interfere with the Zcash network. ViaBTC would now need to hold 51% of the network for 110 blocks in order to double spend money successfully. It would be far more difficult to do this than to hold 51% of the network for 20 blocks.

Reactions to Coinbase's decision to raise the confirmation requirement for ZEC transactions have been conflicting. The decision has drawn criticism from some Zcash users who claim it would make using ZEC more difficult and time-consuming. Others have backed Coinbase's choice, arguing that it is essential to safeguard the Zcash network from manipulation.

Describe Zcash.

A cryptocurrency with an emphasis on anonymity, Zcash was introduced in 2016. While Zcash and Bitcoin are comparable, Zcash has extra capabilities that let users hide their transactions from the general public.

Users of Zcash may make and receive transactions without disclosing their identities or the amount of money they are sending or receiving by using a cryptographic method known as zero-knowledge proofs.

Why is Coinbase raising the transaction confirmation requirement for ZEC?

To reduce the danger of network manipulation, Coinbase is raising the confirmation threshold for ZEC transactions. As was already reported, ViaBTC presently controls the Zcash mining pool. This makes it possible for ViaBTC to influence the Zcash network in a variety of ways.

The confirmation level has been raised by Coinbase to make it more difficult for ViaBTC to interfere with the Zcash network. ViaBTC would now need to hold 51% of the network for 110 blocks in order to double spend money successfully. It would be far more difficult to do this than to hold 51% of the network for 20 blocks.

What effects does Coinbase's decision have?

The choice made by Coinbase to raise the ZEC transaction confirmation requirement has a lot of ramifications.

First, using ZEC will become more challenging and time-consuming. Now, users must wait until 110 blocks have been mined before their ZEC transactions are regarded as complete. It can take longer to get ZEC payments as a result of this.

Second, it could result in less people using ZEC. Longer confirmation delays may discourage some users from utilizing ZEC.

Third, it could make manipulating the Zcash network by ViaBTC more challenging. ViaBTC would now need to hold 51% of the network for 110 blocks in order to double spend money successfully. It would be far more difficult to do this than to hold 51% of the network for 20 blocks.

Summary

An important development is Coinbase's decision to raise the ZEC transaction confirmation requirement. It may have a variety of effects on ZEC users as well as the Zcash network as a whole.

It is significant to note that other cryptocurrency exchanges than Coinbase have raised the confirmation requirement for ZEC transactions. Similar steps have also been implemented by other exchanges including Kraken and Binance.

It's also crucial to remember that Coinbase's move to temporarily raise the confirmation requirement for ZEC transactions is just temporary. According to Coinbase, it will regularly assess the confirmation threshold and make any necessary modifications.