BTC2

Crypto

[Ian Miers @secparam]

Hidden inflation bugs are a real, sobering risk (for now). But using it to push centralized panoptoochains as the privacy solution is dead wrong.
To paraphrase Churchill: In the morning, ZK payments will be formally verified. And your tech will still be disgustingly un-private.

[Cypherpunk ($CYPH) @cypherpunk]

Formal verification. Post quantum cryptography. Tachyon.

The Zcash comeback arc will be glorious.

[BTC2 @btcplanet]

@thefrankbraun "Expert" is underestimated. Taylor Hornby co-authored the Zcash Protocol Specification. He knows the Zcash codebase inside out. Even he needed 2 months. But the Twitter narrative? 'Just a simple prompt to discover the bug.'"

[Taylor Hornby 🛡❤️ @DefuseSec]

To provide context, this was found after running what must sum up to at least a continuous month or two of different agent-based auditing strategies against the codebases. That gives me some confidence that the window of AI-discoverability began with 4.8's release, but I'd like to do a more scientific analysis.

[Eli Ben-Sasson | Starknet.io @EliBenSasson]

HUGE: there's no way to mathematically prove that no $20 bills are counterfeit.

[Dev 🧪 @zkDragon]

In 6 months, everyone will be shocked at seeing privacy scale with no shielded sync.

Chilling in a brand new formally verified pool, featuring recursive proofs, and unconditional PQ privacy.

This bug ends up as a mass education event, and rallying call to formally verify.

[BTC2 @btcplanet]

@CatfishFishy Outsider? Wrong. The auditor, Taylor, is a co-author of the Zcash Protocol Specification. He worked on Zcash for 10 years at ECC

[BTC2 @btcplanet]

@KyleReidhead Old tech? What is the new tech?

[BTC2 @btcplanet]

@trader1sz XMR is slow. It has no maximum supply limit. In theory, advanced AI models can crack its probabilistic obfuscation model

[Sean Bowe @ebfull]

Really excited to audit the Orchard pool's supply with a very elegant and wonderful approach @ShieldedLabs suggested. More about that later today.

But it's funny that the whole time we're fixing it I'm going be paying bills etc. with my Orchard funds! I love it. 😆

[BTC2 @btcplanet]

@YazanXBT @mert Privacy doesn't matter? Post your home address. and your Bitcoin address too

[mert @mert]

the FUD is all fair game

I suggest you try your hardest to bring it all down & use the declining crypto markets & AI hysteria to its fullest

once we overcome it yet again and prove that encrypted money at planetary scale works, then there will be no doubt left (or opportunity)

[Haseeb ＞|＜ @hosseeb]

There's a lot of confusion about the recently patched Zcash bug. Here's how to actually understand it.

If the bug had been exploited before the patch (very unlikely it was), it would have looked like the shielded pool getting drained. Whoever minted the counterfeit shielded ZEC would want to sell fast, before anyone else found the same bug. And remember, the market for ZEC is almost entirely transparent ZEC, not shielded. You can't dump freshly minted shielded ZEC on Binance or Coinbase without unshielding it first.

The losers in that scenario are shielded holders who sit still. The transparent portion of Zcash is fully visible, so it's trivial to enforce that transparent ZEC never exceeds max supply. If you try to unshield more than the cap, you'll get stopped at the door.

So if you hold transparent ZEC (anyone trading, on an exchange, or doing price discovery on ZEC) there's no marginal effect on you. The loss falls entirely on shielded holders.

The team's next step is a new turnstile and a fresh shielded pool in the coming upgrade, which will confirm the shielded pool was not inflated. Think of it as taking headcount at the end of the field trip--that will make sure no extra kids snuck onto the bus.

But while AI found this bug, AI will also deliver the fix for the whole category: formal verification. I'm very bullish on this as the path to harden all software across the industry. Formally verified cryptography can't have implementation bugs by construction.

Right now AI is surfacing vulnerabilities across all our software--browsers, OSes, and blockchains are no exception. We're in the awkward adolescence where every wart is getting magnified and put on full display. But formally verified software is the only path forward for mission-critical software, and Zcash has put it front and center on their roadmap to deliver.

Privacy is too important not to.

(Dragonfly holds $ZEC and continues to. I'm personally an investor in ZODL.)

[BTC2 @btcplanet]

@TedPillows Tell me how coingecko updated their $BTC metrics after this inflation vulnerability https://t.co/69uQq4k6eI

[BTC2 @btcplanet]

@AmitabhKum66262 @cryptomanran Does HYPE have unfixed inflation bugs?

[BTC2 @btcplanet]

@CryptoCyberia https://t.co/N60PVogHm5

[Sean Bowe @ebfull]

@0xdoug The commits were authored 4 days ago, but the refs did not exist in any public repositories. They were merged in after public disclosure.

[BTC2 @btcplanet]

@nic_carter @Rob1Ham @mert This bug was discovered by Taylor Hornby, assisted by AI. Taylor isn't a random security researcher. He's a co-author of the Zcash Protocol Spec. He worked on Zcash for 10 years at ECC. Enormous experience and domain knowledge. That's why he found the bug

[Amir Taaki ⛛ @lunardragon420]

@sethforprivacy im not bothered tbh cos zec can migrate to a new pool and the turnstile will cap supply. so no probs

[BTC2 @btcplanet]

@neun_berg @mdudas To be honest, I don't think you read what you shared. You're just posting tweets that misinterpret the bug report

[BTC2 @btcplanet]

@Vladcostea Anyone with a brain sees the privacy narrative coming. But a lot of people got salty because they were late. They refuse to accept it. That shows how toxic crypto can get