Zcash NU7 Goes Live on Testnet as 25-Second Blocks Move Closer to Mainnet

Zcash has implemented network hard fork NU7 on its testnet, introducing faster 25-second block times, updated features to shielded transactions, and other improvements. 

NU7 became active on the testnet in block 4,465,026 on October 4, ahead of schedule. This allows time for testing before the network decides whether to adopt NU7 on the main Zcash network.

Zcash NU7 Tests 25-Second Blocks Ahead of November Target

A key NU7 consensus change is a reduction in the NU7 block target spacing from 75 seconds to 25 seconds. Implementing this change in the main Zcash network would reduce the number of expected blocks during the current block target spacing interval to three, reducing average first-block confirmation times from 75 seconds to 25 seconds.

The update aims to improve transfer times for payment, deposit, and cross-chain transactions. Note that although blocks will be generated more quickly, ZEC supply will not increase threefold.

The protocol adjusts block rewards to maintain a similar overall issuance rate despite an increased number of blocks. NU7 increases the difficulty averaging period by 102 blocks to better maintain long-term issuance stability with more blocks per unit of time.

NU7 also adds restrictions on shielded transactions in each block. Zcash Foundation states that these restrictions aim to improve shielded transaction capacity and reduce the maximum verification load that spam transactions could place on lightweight wallets.

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Zebra 7.0.0-rc.0, released on October 2, supported NU7 on the public testnet and urged node operators to run the release in a live network environment.

Developers have access to a working environment in which they can evaluate the effects of the upgraded consensus rules on miners, wallet software, other node software, and transactions. Production nodes have not been requested to upgrade due to the lack of a set mainnet activation height.

Zcash Adds Network Sustainability Mechanism With NU7

Another key element is the Network Sustainability Mechanism, or NSM. In NU7, 60% of the transaction fees are taken out of the system and allocated to an account to pay for future emission costs. The remaining 40% of transaction fees go to miners.

The upgrade will also block version 4 transactions on the live network. This could affect users with ZEC in Sprout shielded addresses, as Sprout withdrawals require version 4 transactions. Users with ZEC in Sprout shielded addresses may want to withdraw those funds before the upgrade goes live on the main network to keep using them.

NU7 is based on the Ironwood-related proposals implemented by other network participants and is another major protocol upgrade to Zcash consensus rules. The NU7 upgrade is currently active only on the public testnet for testing by network participants and other infrastructure providers before mainnet activation.

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A Nov. 5 mainnet rollout is planned but not confirmed. Developers will evaluate testnet results on Oct. 20 and decide whether to move forward with the mainnet rollout, including choosing the block height at which the mainnet will activate. Until then, NU7 is a testnet upgrade and not yet an active upgrade to Zcash mainnet.

The post Zcash NU7 Goes Live on Testnet as 25-Second Blocks Move Closer to Mainnet appeared first on Bitcoin Foundation.