Vulnerability Detected in Anonymity Algorithm of the ZCash Network

A group of researchers at the University of London found that there is a loophole in the anonymity protocol of the ZCash network. The problem appears when transferring coins between “protected” and “unprotected” addresses. In such cases, it becomes possible to determine the addresses of the wallets from the sender and the recipient of funds with a high probability. Scientists stressed that the methods of the simplest heuristics can reduce anonymity by almost 70%.

ZCash network is considered one of the most promising and confidential platforms. The structure consists of two types of addresses. These are unprotected “T-addresses”, operations and balance of which is available for all users, and protected “Z-addresses” that are hidden from public view. It turns out that transactions between unprotected addresses can be monitored, while transactions between protected ones are completely anonymous (only the time and the amount of commission are displayed in the blockchain).

The researchers found that in the case when both types of addresses are involved in the transaction, the level of anonymity is significantly reduced. According to scientists, by means of heuristic analysis, it is possible to obtain information about the protected address.

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