Privacy-oriented cryptocurrency zcash is about to undergo its first-ever hard fork.
Called âOverwinter,â the update requires all users of the nearly $800 million blockchain to switch to a new software. But while these kinds of system-wide changes can be high-risk â if some users reject the change, it can split the blockchain and create a rival cryptocurrency â zcash developers are saying there might not be anything to worry about with this particular update.
Set to activate at block number 347,500, which according to current block times, will happen early on Tuesday morning, Overwinter is being described as a low-impact intermediary step, one that prepares the network for another upgrade in October that has broad support.
Thatâs because the next hard fork upgrade, called Sapling, is all about eliminating the weight of the protocolâs private transaction types so that zcash can scale to more users. Essentially, there isnât expected to be much dissent as Overwinter aims to improve on a core attribute of the code already.
According to the zcash website, a total of 12 exchanges, mining pools and startups have come forward to support Overwinter, while further parties â MinerGate, Bitfly and Huobi â have publicized support on Twitter.
As such, Simon Liu, an engineer at zcash, said he does not anticipate risks in the rollout.
âThere is unanimous support from all parties,â Liu told CoinDesk.
And the cryptocurrencyâs creator, Zooko Wilcox, echoed this confidence in interview with CoinDesk.
âWeâve been working with a whole bunch of industry partners and they are all on board with the rollout program,â Wilcox said, adding:
âBasically the entire company almost is dedicated to executing [the upgrade] safely and smoothly in order to increase security for all users.â
That said, the run-up to the hard fork hasnât been without its drama.
D. Jane Mercer, the developer of the zcash Windows wallet, WinZEC, threatened to stop contributing to the walletâs code and a chain split on June 20 if he didnât get further funding to support his work. However, the situation was resolved quickly, with anonymous donations pouring into the developer.
At the same time, disenfranchisement within the zcash mining community, still grappling with the introduction of an ASIC for zcash mining has continued to build.
However, developers are confident that this is unlikely to impact Overwinter given the nature of the upgrade.
One of the reasons for zcash developerâs optimism about the Overwinter hard fork is that those backing the protocol have taken various steps to make sure everything goes smoothly.
For example, the upgrade is low on features, said zcash engineer Jack Grigg. Primarily, itâs designed to prepare the network for its October upgrade, Sapling, by adding features that protect the network during system-wide upgrades.
Aside from that, Grigg said, the only code changes are useful optimizations â such as a new form of transaction expiry, that cancels payments if they arenât processed after a certain period of time, and the removal of a hashing bug that makes certain transactions heavier.
Speaking of the latter, Grigg said, âThere is good incentive for the network to support it in order to improve performance for transparent transactions with many inputs,â adding that because of that the risk of a contentious chain split is low.
That said, there are still inherent risks involved.
Because several features have been added that look to protect users from any harm that can come from future chain splits â like so-called âreplay protectionâ â those features donât exist now and so could cause problems should a chain split occur during Overwinter.
Speaking to this, Grigg told CoinDesk:
âThe Overwinter network upgrade is specifically intended to make future network upgrades safer, so by definition there is more risk during its rollout than for future network upgrades, since some of the features it introduces canât be leveraged for itself.â
Still, there are additional features that developers can fall back on to minimize the risk of the upgrade.
For example, one hour before the Overwinter is set to activate, a mechanism called âsafe modeâ will be relayed across all nodes running pre-Overwinter software, so that no transactions can occur on the legacy chain- unless that mechanism has been actively disabled on individual nodes.
According to Grigg, this feature protects users from accidentally losing money by transacting on old versions of the software.
âThe use of safe mode for old releases is specifically about protecting users who for some reason or another didnât realize there was an upgrade coming,â Grigg said.
Zcash code also contains a feature, named auto-senescence or âEOS halt,â that disables older software iterations after a period of 16 weeks.
While formerly optional, zcash developers recently opted to remove the ability to disable auto-senescence code, which according to developer Jason Davies, ensures zcash users keep up with new releases.
âPermanent use of EOS is intended to simplify the relationship between zcash and its users,â Davies said, âThe default state of the zcash client is to require that you keep your software up-to-date.â
But these risk-mitigations arenât the only strategies the zcash team has deployed to make sure the Overwinter upgrade doesnât go awry. Wilcox said that Overwinter has been extensively tested â indeed, a third-party software review was done in March and failed to show any vulnerabilities within the upgrade.
Wilcox told CoinDesk:
âI want us to demonstrate to the world that we can execute difficult, cutting-edge innovations and we can do so reliably and without disrupting or endangering the growing ecosystem.â
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