| 24h Majors & Movers | ||||||
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BTC $63.9k | ↘ 1.5% |
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HYPE $55 | ↘ 2.3% | |
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ETH $1.9k | ↘ 1% |
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MORPHO $2 | ↗ 3% | |
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SOL $74 | ↘ 1.6% |
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LIT $2.30 | ↗ 5% | |
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- ⚖️ A federal judge temporarily blocked Minnesota’s prediction market ban, ruling the state likely cannot override the CFTC’s authority over contracts traded on registered exchanges, even as Kalshi continues losing similar fights elsewhere.
- 📉 Hyperliquid’s SK Hynix perp briefly crashed around 20% after one anomalous trade in South Korea fed into the market’s pricing system, triggering liquidations and fresh scrutiny of how HIP-3 deployers set prices.
- 🏟️ Fanatics is buying a CFTC-registered exchange and clearinghouse from BGC Group, letting Fanatics Markets list and settle contracts itself rather than paying outside providers as sportsbooks keep bringing prediction-market infrastructure in-house.
Zcash
To date, Privacy chains have faced a paradoxical thorn latent in their designs. When something might have gone wrong, the same cryptography that shields users also blinds auditors.
Zcash has been pressured by this exact paradox for the past two months. In late May, Shielded Labs researcher Taylor Hornby used AI to surface a critical bug in Orchard, Zcash's largest shielded pool, i.e. a private layer where senders, recipients, and amounts stay hidden.
David Christopher
The flaw sat in Orchard's circuit (the zero-knowledge rulebook that defines a valid private transaction) and had been there since the pool launched in 2022.
In theory, this vector could've let an attacker mint counterfeit ZEC undetected. Emergency forks patched the circuit within days, though a wound remained. Since Orchard hides everything, nobody could prove that no fake ZEC had ever been created. That possibility spooked traders, and ZEC shed over half its value on the disclosure.
But fast forward to today, and Zcash just shipped its definitive repair: the Ironwood upgrade.
Ironwood, also the name of the new shielded pool, reapplies the corrected Orchard circuit and its Halo 2 proving system, but its protocol has now been formally verified, i.e. mathematically machine-checked against the rules it must enforce, rather than merely audited and tested.
And this is no marketing gimmick, as multiple teams of cryptographers spent over a month producing a public Lean proof (+2,700 theorems' worth) culminating in "balance integrity," which is the guarantee that undetectable counterfeiting bugs (the exact class that burned Orchard) cannot exist in Ironwood.
Zcash co-founder Sean Bowe and Tal Derei broke down the whole proof effort in a new report out today:
Additionally, with the arrival of Ironwood has come the sealing of Orchard.
The old pool is closed to new deposits, and funds inside can no longer circulate freely. Every exit must pass Zcash's "turnstile" system, a public value-accounting checkpoint that caps outflows at what verifiably flowed in, before entering Ironwood. And in extension, new shielded payments now route to Ironwood automatically.
Accordingly, not only does Ironwood protect the future of Zcash going forward, but it also makes sure that its past can't contaminate the future, so to speak. Any hypothetical counterfeits are cornered inside Orchard whose exits are capped at its legitimate deposits.
Notably, too, this healing took impressive coordination across multiple orgs, like the Zcash Foundation, the Zcash Open Development Lab, Shielded Labs, Tachyon, and beyond. Not bad for a decentralized ecosystem with no central company steering it, to be sure, as plenty of centralized teams would have struggled to replace this pool in two months. The Zcash community got it done despite the challenges.
In the meantime, migration out of Orchard is discretionary, though painless, since Ironwood reuses Orchard's receiver structure, meaning no new wallets or addresses are needed and apps like Zodl have migration support built in. At the time of writing, +111k ZEC had made the move over, leaving +3.5M ZEC still sitting in the old pool for now.
As for what comes next, Zcash has its ensuing upgrade slated as NU7, which aims to target faster blocks (~25 seconds, down from 75) and higher shielded throughput for Ironwood. The throughput gains would come from roughly doubling shielded capacity per block, which, teamed with 3x faster blocks, pencils out to a ~6x increase. It might be unglamorous prep work, but it's the kind of stuff that will help pave the way for shielded Zcash payments to become the norm.
It's true that Orchard was a serious setback. However, the silver lining is that this thorn led to Zcash's state today, as the network is now oriented around machine-checked math. Making privacy ubiquitous starts with making it provable, and Zcash just took its biggest step yet in that direction. Now, let's see how the chain proceeds and recuperates from here.
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