Key takeaways
- Zcash (ZEC) stock rose more than 4% after developers announced progress toward proving that its new privacy system is free of undetectable counterfeiting vulnerabilities.
- The Tachyon project is close to completing mathematical verification of Zcash’s upcoming Ironwood protected pool.
Zcash’s native token ZEC rose more than 4% on Wednesday after developers announced they are close to mathematically proving that the network’s next-generation privacy system is free of a critical class of fake vulnerabilities.
The announcement restored investor confidence after last month’s revelation of a security flaw in Zcash’s existing protected transaction system, which helped the privacy-focused cryptocurrency regain the $500 level for the first time since early June.
The Tachyon Project is close to verification of the Ironwood Shielded Pool
The latest update comes from Project Tachyon, the team leading the official verification of Zcash’s upcoming Ironwood protected pool, which is set to replace the current Orchard privacy pool.
According to the developers, they are about to produce a mathematical proof confirming that Ironwood contains no undetectable fake bugs.
Zcash founder Zooko Wilcox said the project is “on the verge” of completing formal proof showing that the latest generation of protected Zcash pools is secure against this class of vulnerabilities.
If the verification process is successful, it will provide stronger security guarantees for one of the network’s core privacy features.
Investor confidence was shaken last month after developers revealed a serious security vulnerability affecting Zcash’s Orchard protected pool.
The flaw could theoretically allow an attacker to create a fake ZEC within the privacy pool without being detected.
Although the developers quickly patched the issue and said they found no evidence that the vulnerability had ever been exploited, Zcash’s privacy architecture made it impossible to prove that counterfeit coins were not being created cryptographically.
This revelation sparked a sharp market reaction, sending ZEC stock down more than 40% in just two days.
Will ZEC get $550 back?
The ZEC/USD 4-hour chart remains bullish and active after the recent rally. Momentum indicators suggest that the bulls may push the price of ZEC higher.
The RSI 57 shows that ZEC is above the neutral zone, while the MACD lines reinforce the bullish bias.
If the bulls stay in check, ZEC could rally past Tuesday’s high at $510 and set a new weekly high around $550.
A decisive candle close above this level may allow ZEC to reclaim the psychological $600 area in the near term.
However, if the bears come into the picture, ZEC may retest the 4-hour TLQ at $438 within the next few hours.
