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Zcash updates to the new Canopy version and applies its first halving

Key facts:

Enhancements include a revamped funding and compatibility model.

The incentive for miners now goes from 6.25 ZEC to 3,125 ZEC.

Privacy-oriented cryptocurrency project Zcash ran its fifth network update called Canopy, an event that coincided with the application of the first halving in its history. The new software encompasses five ZIP enhancements that establish, among other things, a new funding and compatibility model.

The announced event occurred on Wednesday morning at the height of block 1,046,400 with no negative incidents being reported on the blockchain. In total, the improvements applied were ZIP 207, 211, 212, 214 and 215. Regarding the incentive granted to miners for their participation in the network, this was reduced from 6.25 ZEC to 3,125 ZEC.

“The feature selection for Canopy was determined by the Electric Coin Company (ECC) and the Zcash Foundation and finalized in version 3.1.0,” explained on the official Zcash website.

The main change in the network is the new financing scheme that would ensure further development of projects for the next four years. From this Wednesday the distribution of the reward was established at 80% for the miners and 20% that will be shared in three bands between the so-called Large Grants Fund (8%), the Electric Coin Company (7%) and the Zcash Foundation (5%).

The new provision eliminates the so-called reward to the founders of ECC, which was 9.85%, an incentive that for a long time generated debates among the enthusiasts of the project and members of the Zcash community.

The above methodology is derived from the ZIP 207 and 214 improvement proposals. The other three ZIPs cover the compatibility of cryptographic signatures with other versions of software, as well as greater security and privacy in transactions.

Z directions, security and privacy

In the case of ZIP 211, the developers disabled the option to send transactions to Z addresses configured as Sprout addresses. These are addresses that belong to the first versions of the network. On this point, Zcash indicated that it is a step to eliminate the Sprout protocol, thus reducing the complexity and attack surfaces to Zcash.

“Users of Sprout Z addresses are encouraged to use Sapling Z addresses instead and migrate their remaining Sprout funds to a Sapling Z address,” the Electric Coin Company had recommended in September.

CriptoNoticias reported two months ago about this improvement and it was clarified that, although transactions can no longer be sent from Sapling addresses to Sprout addresses, transactions can still be made between Sprout addresses or used as outflow of funds.

The ZIP 212 and 215 are the ones that enter the field of security and privacy. The first proposes a “new plain text format” for the Sapling transaction outputs. The upgrade would prevent a recipient from being able to decrypt someone’s secret transactions. While the second aims to validate the signatures in the current protocol since there was no stable criteria for cryptographic signatures that use the Ed25519 curve encryption.

The update of the network nodes and the halving would not be influencing the price of the ZEC cryptocurrency. At the time of publishing this article, its price was $ 63.66 per unit with a variation of 1.7% for the last week, according to figures from the CoinGecko service.