Zano Resumes Chain After Exploit, Restarting at Block 3,833,000

The restart removes transactions verified during the affected month while preserving activity conducted outside the Zano network.

Zano Resumes Chain After Exploit, Restarting at Block 3,833,000

Photo Credit: Unsplash/FlyD

Gateway Addresses were created to simplify Zano integration for service providers

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Highlights
  • Hard Fork 6 introduced Gateway Addresses on August 26
  • At least two Gateway Addresses were registered in the first week
  • External transactions are not affected by the blockchain restart
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The project has initiated a new blockchain from block 3,833,000 because the Gateway Address vulnerability allowed the creation of ZANO and Freedom Dollar tokens, which compromised one month of network history. ZANO's core developers confirmed on Sunday that the selected block comes immediately prior to Hard Fork 6, where the Gateway Address feature was launched in August. In order to perform this recovery, it is necessary for miners, stakers, nodes, exchanges, and pools, etc., to update their software.

Gateway Addresses Were Designed for Exchanges and Payment Providers

As per the announcement by ZANO on X, transactions that have been verified during the problematic month are no longer part of the restored blockchain. It has been advised that all users retain their transaction IDs and trading history while reviewing the history of prior transactions. The rollback can not undo transactions that have been performed on external platforms to Zano. Transactions done using USDT, DAI, or any other tokens will not be affected by the chain restart, according to the project.

The implementation of Hard Fork 6 on August 26 took place at block 3,833,000 and introduced Gateway Addresses among other protocol changes to the Zano platform. It took the project over a year to develop the addressing scheme. The Gateway Addresses have been created specifically for exchanges, bridges, and payment providers who find Zano's usual system of unspent transaction output too complicated to incorporate into their platform. In contrast to regular Zano wallets, the newly introduced addresses maintain an account balance on the blockchain.

Before the update, service providers had to manually scan outputs, process incoming transactions, and control which outputs got spent during withdrawals. The Gateway Addresses should have allowed the service providers to get one balance while retaining the privacy offered by regular Zano transactions. There was a one-off fee of 100 ZANO for registration, which was burned permanently by the protocol. According to the Zano forum, there were at least two Gateway Addresses registered within the first week of the feature on the mainnet. 

The Zano restart follows other crypto networks taking similar recovery steps after major security incidents. In June, THORChain's network also restarted operations after a security check and upgrade period of over one month due to a hacking incident where $10.7 million (roughly Rs. 101.28 crore) was lost. THORChain stated that it restored its network, including trading, signing, swaps, and liquidity provider actions. The protocol announced that it had established the safety of most of its vaults using the KeyVerify protocol, while other legacy vaults were decommissioned in preparation for new vaults.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Rahul Dhingra
Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More
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