Crypto exchange Coinbase shared a post about the privacy-themed altcoin Zcash (ZEC). The exchange decided to take precautions because a mining pool has control over the cryptocurrency that works with proof of work.
According to the blog post shared by Coinbase, the exchange will now require 110 block confirmations for ZEC (Zcash) deposits. This will increase the deposit time from an estimated 40 minutes to 2.5 hours. Exchange officials want to prevent a possible 51% attack with a more difficult approval process.
The US-based cryptocurrency exchange had previously announced that it would allow “limit only” orders for Zcash trading. Coinbase customers have not been able to place market orders for ZEC for some time. The exchange stated that this measure aims to minimize the impact of a double-spending attack during major sell-offs.
Coinbase conveyed its reservations about the issue to Zcash founder Electric Coin Company and the mining pool ViaBTC in question. The exchange is very concerned about the centralization of mining. Authorities offered suggestions to both parties to avoid any negative situations.
Electric Coin Company, the inventor of the altcoin project, confirmed the development. The company is working on alternative solutions to address this problem.
The mining pool called ViaBTC alone controls 53% of the ZEC network.
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