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Zcash Activates 25-Second Blocks on Public Testnet Ahead of Schedule

The privacy-focused cryptocurrency moves closer to its November mainnet upgrade, with changes to fees and Sprout support.

By LineZotpaper
Published
Read Time2 min
Zcash's long-awaited network upgrade, NU7, has gone live on the public testnet ahead of schedule, introducing 25-second blocks and altering the distribution of transaction fees. The upgrade, which aims to make private payments up to three times faster, is slated for mainnet activation in November, pending a developer review on October 20.

The Zcash development team has activated the NU7 upgrade on the public testnet, achieving a key milestone in the network's planned November upgrade. The new 25-second block time is a significant reduction from the current block interval, designed to accelerate private transactions without changing the overall issuance of new coins. According to the upgrade parameters, the scheduled reward per block will fall to one-third, preserving the total supply creation schedule.

The upgrade also changes the fee structure. Under NU7, miners receive 40% of transaction fees, while the remaining 60% is removed from circulation and placed into a reserve fund intended to support future mining rewards. This reserve is intended to sustain miner incentives as the new coin issuance declines over time.

In addition, NU7 disables transactions used by Sprout, Zcash's oldest private-payment system. Holders with funds in Sprout addresses will need to move them before mainnet activation to continue spending them through the existing system.

The testnet launch came ahead of schedule, according to a report from CoinDesk. Developers plan to review the test results on October 20 and decide on mainnet activation. November 5 remains the target date, though no specific activation block has been set.

The upgrade is part of Zcash's ongoing effort to make private payments faster and more usable, with earlier reports indicating that the upgrade could make private payments up to three times faster.

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Analysis

Why This Matters

  • The upgrade aims to significantly improve transaction speed for Zcash users, making privacy-focused payments more practical for everyday use.
  • The fee structure change could affect miner incentives and the long-term security of the network.
  • The disabling of Sprout may impact users who still hold funds in the legacy privacy system.

Background

Zcash is a privacy-focused cryptocurrency that uses advanced cryptographic techniques to shield transaction details. Its development is driven by a series of network upgrades, each introducing new features or improvements. The NU7 upgrade continues this tradition, focusing on transaction speed and miner economics. The testnet milestone is a crucial step before any mainnet deployment, allowing developers to identify issues in a safe environment.

Key Perspectives

Zcash Developers: They aim to enhance the network's usability and sustainability, viewing the faster blocks and fee reserve as necessary for long-term health. Miners: The new fee distribution means they receive a smaller share of fees directly, but the reserve fund is designed to provide future rewards as issuance drops, which may be seen as a benefit. Sprout Users: Those with funds in Sprout risk losing access if they do not migrate before mainnet activation, creating urgency for a subset of the community.

What to Watch

  • The outcome of the October 20 review and the decision on mainnet activation.
  • How the testnet performs under load, especially regarding block propagation and network stability.
  • The level of Sprout fund migration and any user complaints about the transition.
  • Whether the new fee structure leads to any changes in miner behavior or hash rate distribution.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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