Zcash Launches $1.7 Billion Shielded Pool with Ironwood Upgrade

Zcash Launches New Private Pool After Fixing Orchard's Vulnerability

Zcash has completed its Ironwood (NU6.3) upgrade, which effectively replaces the previously compromised Orchard shielded pool. The Orchard pool, containing about 3.66 million ZEC valued at approximately $1.7 billion, has been sealed off, and users must now transition their assets to a new private pool that starts with zero coins.

The Orchard pool had a hidden flaw in its proof circuit that posed a risk of counterfeit ZEC being created without detection. The Ironwood upgrade introduces a turnstile mechanism that restricts withdrawals to the amount of ZEC that has been verified as deposited, addressing the vulnerabilities present in the Orchard pool since its launch in May 2022.

Activated at block 3,428,143, Ironwood ensures that all transactions entering or exiting the shielded pool are publicly disclosed, while maintaining the privacy of internal transactions. This new system aims to prevent any potential counterfeit coins from being withdrawn from the pool.

Despite concerns about the Orchard flaw, reports indicate that no exploitation occurred during its four years of operation, as the pool's balance consistently grew. The developers have now implemented additional security features in Ironwood, including a recoverable record of coin movements and formal verification of the proof circuit to ensure operational integrity.

As of the latest data, 1,500 ZEC have already moved to the new pool. ZEC was trading at around $463 at the time of the upgrade, reflecting an 8% decrease for the day and a 15% drop over the week, although it remains significantly higher than its value a year earlier. The key focus will be on how quickly users migrate the remaining 3.66 million ZEC to the new pool, as most of Zcash's private supply is currently locked in the old Orchard pool.