Zcash has announced that it plans to add a new consensus rule in order to protect its coin supply against counterfeiting attacks. Although Zcash offers privacy features, some of its coins move in such a way that they can be observed via a “turnstile” effect. Beginning in May, Zcash will reject blocks should they show signs of counterfeiting—something that hasn’t happened yet.
Over the past year, Zcash discovered and patched a vulnerability that could have allowed attackers to freely mint new ZEC tokens instead of mining them. Fortunately, this vulnerability was never exploited and has now been patched. However, the recent patch prevents just one known method of counterfeiting. This new rule will protect against any type of counterfeiting.
An overarching solution is important because Zcash’s privacy features make it difficult for anyone to detect counterfeiting directly. Although many Zcash wallets and addresses don’t make use of these privacy features, some Zcash addresses are…