State of ZenCloud Address


Good evening everyone!

Its been an exciting last few weeks. We have made huge progress in making
Hashles available to miners all over the world. I wanted to take some time
to provide some information about our last update. My goal is to get all
the information in one place, so you dont have to hunt around. First, lets
start with some ZenStats!

State of ZenCloud
In the last 2 weeks, ZenCloud has seen a:
We have seen a 2x Increase in total network hashrate
Our ZenCloud code base has grown by 3X
There bas been a 8X increase in transactions
We have created over 5,000 brand new miners!
Many of our customers have already reach ROI, and many are closing in!
Some of our customer have made triple their investments, its been an
incredible feeling to bring ROI back to mining.

We said we would bring back profitability back to mining. This is no longer
a future goal, its happening now! On to some system updates!

Bugfixes
Fixed:
Multiple Hashlet splitting/merging issues.
Reset Password Vulnerability
Improper destroying of sessions

Bounties for Bugfixes
Since we’ve had a number of incredible individuals come forward and disclose
many of the bugs in our system, discretely, we’ve decided to reward those who
were the first to report bugs. We’ll be reaching out to you by the end of the week.

In the meantime, we’ll be rolling out a Bug Bounty Program to ZenCloud. Now
any ZenCloud user can discreetly notify us of bugs and earn rewards for their
efforts. Stay tuned for a new web portal that will be used for submitting new entries.

Delays
Between additional SHA hardware being added the the network and the enormous
number of Prime Hashlets sold, SHA-256 pool targeting on Primes will be released
later. We will use this time on the development side of things to correct the bugs in
ZenCloud as we add additional SHA output.

ZenCloud Bugs
Payouts / Deposits
Payouts
Payouts have been working smoothly up until very recently. Between the enormous
success of Hashlet and the sheer number of features they offer over other miners
(splitting/merging/boosting/selling), the complexity of our system has increased many
times over. Add to that a 3x increase in our user base and you have a situation where
payouts have slowed to a crawl on our old system. @evanlucas has designed a brand
new payout system, far more appropriate for this new environment. He and his team
are currently working on development.  We expect that by the end of the week we will
be waving goodbye to these 13hr payout rounds :)

Deposits
Currently, the most popular way companies like ours add btc deposits to their wallet
systems is to treat it similar to a merchant service. You buy and checkout with BTC
as your payment method -- but instead of getting a product, you get BTC in your wallet.
It’s a solid technique, easy to implement, and robust under most conditions.

We’ve exceeded those conditions.

As many of you know, we use an online wallet that supports a REST web service that
supports callbacks. Callbacks let us know when deposits are 1) made and 2) confirmed.
This is a great service and has worked well for us up until recently. But now we’re process
so many simultaneous transactions that we’re getting confirmations faster than services like
Blockchain.info can send us callbacks to let us know. That means delays.

These delays have understandably caused some users to feel uncomfortable depositing BTC
into their ZenCloud account. This is an important issue. We’re migrating to a bitcoind
implementation to give us more control over how actual deposits are made and confirmed.

This will also allow us to kill two birds with one stone. With bitcoind, we will now be able
to give users a permanent BTC address in addition to the regenerated addresses we currently
use. Now, even if you decide to regenerate your BTC wallet address, your old address will be
saved so that any bitcoin sent to any old addresses you've used will also be credited to your
account balance and shown in the activity log.
All of this is a major overhaul we have been working on for some time now. Implementation
is planned for the end of this week. We’ll keep you up to date in the meantime.


Hashlets
Splitting
Currently Hashlet need to be split to 1/5/15/25/50/75/100 increments to be sold. Converted
hardware like Furys and War Machines don’t have these round numbers and haven’t been able
to be sold. That’s all changing very soon.

We’re developing the ability for users to sell any amount of MH/GH by simply placing their
entire Hashlet for sale, whatever its size. The way this works is quite a bit different than the
currently implemented strategy. The current logic matches buyers with sellers of the same
Hashlet size. The new sophisticated purchasing/selling logic will queue any size Hashlet
and chunk it out or pack it with other Hashlets over time to match the sizes buyers want.
This means that for example, a 34MH Hashlet will sell right away to a 50MH buyer, and the
buyer’s call will be converted from a 50MH to a 26MH buy. This raises a few questions, which
I will cover in the actual announcement when this feature is released.

Hashlets Not Selling
We’ve tracked down the bug that causes some Hashlets, regardless of size, to not sell in the market.
We will be running a database migration on Friday to reconcile the affected Hashlets so they will
be sellable once again. Don’t worry, we’ll make sure that this won’t affect your hashing output.
Just be ready to see your Hashlet’s selling if you have had in the sale queue for a while. We will
make an additional announcement about this change after it is complete.


Account Transfer Security
We’re aware of a session expiration issue that allowed accounts to login at multiple locations
for extended periods of time. This presented a security issue for anyone who purchased an
account from a private party. Though there have not been many, there have been a few
reports of accounts being sold, then recaptured by the seller after the transaction was made.
We’ve corrected this by ensuring sessions are destroyed after a much shorter period of no
user-invoked activities.

Additionally, there was a small window of time where users had the opportunity to abuse the
“Reset Password” function to regain access to an account they recently sold. This has been fixed

We currently working with a cyber security firm that specializes in securing complex web applications.
These are good guys, comprised of ex-military “white hat” hackers skilled in the areas of ethical
hacking and multifaceted penetration testing. We’re happy to bring them on board to keep security
tight, even as we roll out new features bi-weekly.


Quality Assurance
We’re taking a more aggressive stance to prevent bugs and potential security issues. We’ve
integrated a comprehensive testing and quality assurance phase to make sure every feature
we add is tested rigorously before release. It is now part of our development process. We have
and continue to bring additional QA engineers onboard.


Closing Comments
I want thank everyone again for being patient while we work through these issues. Building the
best and most feature-filled cloud mining service the world has ever seen is an enormous undertaking
and will come with a few bumps along the way. We’re taking them very seriously and we’ve made
fixing them our top priority.

Thanks everyone,

Hash on.

Josh/CEO