Cypherpunk’s new mining operation raises centralization concerns amid Zcash’s 1,300% annual gain and recent security upgrades.
A single entity, Cypherpunk, now controls 18% of Zcash’s (ZEC) network hashrate following the launch of a new mining fleet. The move comes as Zcash has surged over 1,300% in the past year, despite recent market corrections.
The Zcash network recently completed its Ironwood upgrade, replacing the Orchard pool with a new shielded transaction protocol to address a security flaw. The vulnerability could have allowed undetected counterfeit ZEC creation, though no exploitation was confirmed. The upgrade aims to bolster network integrity amid growing adoption.
Market observers note the concentration of hashrate may pose risks to decentralization, a core tenet of cryptocurrency networks. Zcash’s privacy features remain a key differentiator, but security challenges persist as adoption grows.