Countdown to Canopy, Zcash’s fork that rewards development

The Electric Coin Company (ECC) team, which develops the Zcash cryptocurrency network, already has its next fork called Canopy ready, which will establish a quota of 20% of the mining reward for a development fund, a fact that has been questioned in recent months.

The activation of a set of 5 updates focused on improving the privacy of transactions, and as a way to continue contributing funds to the development of the network, will occur in block 1,046,400, approximately on November 18.

At release of this September 2, ECC indicated that the Canopy fork began to be operational in the Zcash test network from block 1,028,500 (August 5). The fork will reach the main network almost simultaneously with the first halving de Zcash, which cuts the reward for mining this network in half (6.25 ZEC per block).

Let us remember that with the first halving From the network, the reward received by the founders of Zcash would be eliminated, so for months they discussed how to mitigate the possible lack of financial incentives to attend to the maintenance of the software and other aspects more focused on the development of their community.

Specific, miners will receive 80% of the mining reward and the remaining 20% ​​will be divided as follows: 8% for the Major Subsidy Fund, 7% for Electric Coin Company and 5% for the Zcash Foundation. This new model, supported by the Foundation, hopes that this development fund will be established for the next four years, as indicated in the proposals to improve Zcash (ZIP) 207 and 214.

The scheduled fork will occur in approximately two months. Source:

Batch Transactions and Disabling Sprout Transactions

Those who run nodes to record transactions of the Zcash cryptocurrency should take into account that the next updates will not be compatible with several functions of the previous versions. Therefore, they must follow certain recommendations.



For example, updating the ZIP 211 indicates that, with the arrival of Canopy, Transactions cannot be sent to Z addresses configured as Sprout addresses. This type of address belongs to one of the first versions of the Zcash network, which in principle had to be replaced by the Sapling addresses to avoid possible vulnerabilities.

Although you can no longer send transactions from Sapling addresses to Sprout addresses (these are identified by the letters “zc” at the beginning), you can still make transactions between Sprout addresses or use them as outgoing funds. CCE recommends migrating these pools from Sprout addresses to Sapling addresses with the tool zcashd.

With the update described in ZIP 212 and Zip 215, Canopy enters the field of improvements in the security and privacy of Zcash transactions.

ZIP 212 prevents batch transactions made with Sapling’s “diversified addresses” from being linked by a potential attacker. Hypothetically this could be a payment in a batch transaction to discover someone’s behavior and deduce what their transactions are, as described by Brian Warner.

The update proposes a “new plaintext format” for Sapling transaction outputs, which would prevent a recipient (including a potential attacker who infiltrated as a sender) from decrypting someone’s secret transactions.

ZIP 215, for its part, seeks to solve the problem of the validation of cryptographic signatures in the current Zcash protocol. According to the cryptography currently used by Zcash, there is no stable criterion for the validation of signatures that use the Ed25519 curve cipher.

Yes, this is quite technical. But it basically refers to the fact that starting with the implementation of Canopy, compatibility problems between different versions of the Zcash protocol would be overcome, which in some cases “do not need to agree if the signatures are valid” and specific criteria for batch validation would be established. Although signature validation does not represent a bottleneck for the Zcash network, as indicated by the ECC team.

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Countdown to Canopy, Zcash’s fork that rewards development

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