Topic: How I found a flaw with zen-cloud payout system and more. (Read 3482 times)

Not like many well known companies have done this when a real problem was shown to them.  

I applaud your efforts in finding this flaw with zen-cloud and hashlet pool payouts.

Surpised this didnt get more attention

Ok, things are more clear now, sorry i didnt come back earlier, it was bath time for the kids...
Glad things worked out, but now you are the villain in front of 90% percent of gaw customers. For the other 10% like me, we really appreciate every bit of info, as we are looking for both good and bad info, as long as it is true.
But like i said, more than a flaw, you uncovered something important in GAW`s strategy

Ah I found it in the middle of last night  and this were complicated by too much coffee pm's email's yada yada yada



I just posted this. here https://bitcointalksearch.org/topic/m.8768366

"Okay Josh the  ceo   of zen-gaw and I had a long talk via pm.  He paid me 1.75btc .

0.75btc   was to repay the money I spent to figure the nicehash issue out.

1.0btc was a finders fee  for saving his company a possible huge financial  setback  if this was done after the large fri sha256 was done.

 I wish I had been able to explain this easier and simpler and not caused the drama that has occurred.

  But plain and simple  If I had figured out Mt Gox 1 week sooner and saved that day I would have.
If I figured out BIPs in advance and saved 1000 lost coins I would have.
 If I had been able to do this for trade fortress I would have.

I also think in each case I would have pissed off a lot of people.  No matter how I had done it.  


I know that I pissed off people here that  was not my intent.  I still have an S-3 mining in the zen cloud and it will earn less.  I want to point out they stopped the problem and knowing them they will come up with a better idea.
   I still feel like I walked up to them and said your left nut is bad it has to go.  Or if you arer\ a girl your left ovary is bad time to cut it out. the pain today is real but in the long run you will survive.
   To their credit they did give me a bounty and did not fluff off the problem.  If they were MT Gox they would have run.

Josh thank you for being a stand up guy. Plus a man of your word."



THIS IS NOT SOMETHING I WAS LOOKING FOR .

In retrospect I was a bit afraid that I found something this big.

  I got a bit paranoid  and I rushed it to print so to speak.  
Don't drink coffee and sit at  a pc for 20 hours out of 24 .  If you find something important you may handle it stupidly.
If I ever find a large problem like this again.  
I will handle it differently.

I do believe I stopped a lot of money from being stolen from zen-gaw which ultimately helps their customers.

Phil,thanks again for all the info. I honestly appreciate it. One thing I brought up over there is that I do not believe you handled this appropriately
let me quote myself
"in that sense I disagree with him (Phil). I don't think GAW ever offered a bounty, so he has no right to demand one. I honestly believe that. If GAW then decided to give him a bounty, fine, but he has no right to demand a bounty. What he did in fact was borderline blackmail and I do not condone such behavior. let me post that over there as well"
However, I do understand you regret some of what you did and you confessed that it was late, were upset, etc

I commend people that look for the truth and I also believe GAW should take another step forward towards transparency

I am not surprised to be honest, will be a lot of unhappy people.

yeah I rather an attempt at honesty then all of us cutting throats over coins.

There is a rapidly growing discussion over at HT:

https://hashtalk.org/topic/5142/what-is-this-crap-about-removing-nicehash-sha256-from-zencloud

That link goes nowhere now.

There is a rapidly growing discussion over at HT:

https://hashtalk.org/topic/5142/what-is-this-crap-about-removing-nicehash-sha256-from-zencloud

I locked the first try at writing this thread  I decided I want to be able to moderate the thread.

I had 4 s-3's they mined at westhash and at nicehash. I sometimes would get huge spikes in price on Nicehash and westhash.  Often getting 2x normal payouts. I did not understand why but noted it as something I would look into. I did not understand why anyone would pay for sha256 hash at 2x the going rates.
I sold off my s-3's . I purchased 2 asicminer tubes.

 I was mining at mmpool.org with a pair of asic miner tubes. Why a small pool because asicminer tubes have pool choice limits if you use the stock controller (thanks fried cat).
So two days ago I thought I saw a flaw in mmpool.org's method of running the pool.  The pool is small around 50th.  I decided to test my idea out.  It involved buying large hash from westhash (a nicehash partner)  I purchased blocks of 30 th or 50 th even  100 th on and off from westhash and pointed them at mmpool.org  sometimes the mmpool.org got up to 130th of which 80th was all mine.
   After 30 hours of testing I spent about .75btc doing the tests I decided my idea that mmpool.org was flawed was wrong.  I did raise my btc due if it ever hits a block and would kind of break even if the block is hit soon.  The result I was looking for did not happen.  Sometimes an experiment can give a different result then you were looking for.
 I drove the price up from about .0245btc to .0307 btc on both westhash and its partner nicehash.  After I stopped the btc spending price dropped down to about .025btc




I realized this has other results.  I own an s-3  hosted on zen-cloud   and point it at nicehash.
here are scheduled payoffs for all zen gear pointed at nicehash


Payoff are .0307 per th.      now for 1 zen cloud s-3  this means you get .0145 instead of .0095   a gain of about .0050btc so no one would spend .7500 btc to gain .0050 btc.  But If I had pointed the extra hash at cex.io/ghash   my .75btc would have paid back around .5btc  so I would be spending around .2500 btc to earn .0050  now we all know  that makes no sense at all spending 50x the btc units to get 1 btc units for the 1 s-3 is silly a waste of money.

But zen cloud is full of gh in the sky.
the top ten are more then 100th total


 Those people would be paid  100 x .0307 = 3.07 btc  instead of standard 1.9 btc - 2.1 btc    so that is around 1 btc extra on just the top ten sha256 miners.  This could have cost zen-gaw big bucks. I like or should I say liked this company or maybe I should say I have had a hot and cold relationship with the company.  They have been very nice to me and at time really fucking stupid.
I am basically an honest guy so I decide to post a thread to them.  I fear they have been robbed more then once by manipulation on nicehash by someone buying on westhash.  I have seen huge over paid sha256 hash and could not understand why people would overpay for  sha 256 hash.  This reason is really good reason.  

So I do the right thing. I posted this thread.



I have more to say but I am going for a swim.  Be back in a few hours.

There is a rapidly growing discussion over at HT:

https://hashtalk.org/topic/5142/what-is-this-crap-about-removing-nicehash-sha256-from-zencloud