🔄 REPOSTING FROM REDDIT
🚨 Post:
Why centralised KYC exchanges allow ZEC. Clarification on the current state of ZEC Trusted Setup in their production blockchain.
I have conducted a small research with DeepSeek and real persons from r/zec involved, and the conclusion is the following:
Indeed, ZEC production blockchain has been upgraded to the Halo2 cryptographic system that allows to gradually eliminate and fade out the dependence on the well known and pain famous Trusted Setup ceremony by systematic updates of the Universal Reference String (URS). Halo2 does theoretically allow any blockchain participant to update the URS by some procedure.
But DE FACTO, the URS string generated in the Trusted Setup ceremony stays UNMODIFIED on the current production blockchain of ZEC.
This fact signifies if just one of the ceremony participants has not wiped out his key, all the ZEC hidden transactions on the production blockchain still can be traced out.
Furthermore, in ZEC network, no production blockchain participant can easily update the URS because it does require the whole ZEC network protocol upgrade used in the production blockchain.
The decision on protocol upgrade can be made only by ZEC core developers in their Electric Coin Company (ECC). It is like a hard fork, thus, extremely epic operation, that involves into cooperation all the blockchain participants.
So, if just one key from Trusted Setup has not been wiped out, all the hidden transactions on the ZEC production blockchain can be traced by 3rd party, namely FBI and other 3-letters agencies belong to government authorities.
That’s why ZEC can be easily listed on virtually all KYC centralised exchanges: a dedicated group of people can trace all the hidden transactions because there exists a key that has not been properly wiped out.
Note, at the methodological point of view, we have no duty to prove there exists a key that has not been wiped out, it is SUFFICIENT we can’t prove it HAS BEEN wiped out.
So, being growing in listings on KYC centralised exchanges, the ZEC price is skyrocketing, what we do exactly observe.
🚨 OP comments:
1. Pegasus malware backed by government, etc etc.
2. If the toxic waste for the production URS exists and is known to an adversary, then the privacy and integrity of the current ZCash production blockchain's Orchard pool are broken:
All the today-made hidden transactions can be gradually traced out.
ZEC coins can be created from thin air and spent out.
That’s exactly why Halo2 was introduced at all: it allows a gradual RECOVERY from the compromised state to the secure state by updating URS value in the new Trusted Setup from URS1 (proven compromised) to URS2 (considered as honest).
In a nutshell: if ZEC core devs do share URS1 , URS2, etc with FBI, the total project is a fully devastating SCAM. Halo2 can’t save us in this situation.
Unlike in Monero only open source code matters. Monero core devs CAN NOT share something with FBI to explore our transactions!
Now you see how devastating is the world: ZEC is skyrocketing and Nobody cares IT IS NOT a privacy coin at all.
Because, I repeat, at methodological point of view we have no duty to prove that URS value is not compromised.
It is SUFFICIENT we can’t prove it IS NOT compromised (by FBI, etc).
ZEC is a fatal and fundamental philosophical SCAM because we always MUST TRUST in ZEC network.
Actually, ZEC is an ideal model for traditional KYC financial institutions where a dedicated group of people MUST know all your transaction history.
That’s precisely why they meet KYC so easily, appearing on most centralised exchanges and their price is skyrocketing like Bitcoin price.
But, while Bitcoin does declare it is NOT private , it is NOT a scam.
But ZEC declares it is Private but actually it is NOT, so they simply directly, pedantically lie. So they are SCAM by definition.
https://www.reddit.com/r/Monero/comments/1o453e3/why_centralised_kyc_exchanges_allow_zec/
