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In about five hours, Zcash, the confidentiality cryptocurrency, will create a new network called blockchain called Ycash.
It will be the first of its kind to boast a code base almost identical to that of the Zcash blockchain but functioning as a separate network and a de facto competitor.
Announced for the first time in April, this effort is led by Howard Loo, a long-time Zcash supporter. Loo described in an article in the Zcash forum that Yashash was a preventative measure to resist future decisions by the community to extend Zcash's developer finance system, known as the "Founder's Reward", to beyond a promised ceiling of 10% total supply of chips.
"We are also launching Ycash to keep a promise – that Zcash's founders' reward will be capped at 2.1 million coins – and we are worried about growing pressure from here to the end of the year. the award of the founders in October 2020, "writes Loo in the forum post.
Since then, prominent leaders of the Zcash community such as the founder of the coin Zooko Wilcox publicly expressed their support for Loo's initiative, agreeing to disagree over some network changes in the founder's reward and others that would make Ycash incompatible with Zcash.
Normally, network splits of this nature actually add value to a user's cryptocurrency resources. Indeed, users are able to exchange exactly the same amount of coins minted on a string of channels of the new chain of channels at no cost.
"From the perspective of speculators, network splits are often an intriguing investment opportunity," said Sam Ouimet, a former market badyst at CoinDesk. "New money often buys cryptocurrency being stuffed in order to secure its claims of new coins."
Of course, the value of these newly issued coins, called YEC, on the Ycash network can be considerably lower than ZECs on the Zcash network. However, if old forks of block chains generating crypto-currencies are an indicator, coin prices shortly after a hard range tend to take a hit, then bounce back.
Take bitcoin cash for example. The world's most popular cryptocurrency, bitcoin, was enamelled on August 1, 2017. In just four months, the resulting cryptocurrency network, called bitcoin cash, reached an unprecedented market capitalization of $ 69 billion, with a BCH at about $ 4,000.
Since then, the markets have cooled considerably, but the network of spin-offs remains one of the five most popular blockchain networks in the world. Although his own network split in November and his attack is presumed to be 51% in May.
As such, for users of the nearly $ 700 million blockchain network that is Zcash, the creation of Ycash at around 3:00 UTC on Friday, July 19 could mark the beginning of a new source of return on investment.
However, for users to take full advantage of their new YEC database, they must ensure that they are monitoring their own private keys and wallet addresses. They can also ensure that the exchange on which they hold their ZEC tokens supports the splitting of the Zcash / Ycash network.
Cryptographic exchanges, including Binance, OKex, Coinbase and Huobi, have not yet confirmed their support for the imminent launch of Ycash.
A spokesman for Binance told CoinDesk that the team would evaluate the "community feedback" around the room to determine possible future registration.
What this means for ZEC holders
If you are a ZEC holder, Loo tells CoinDesk that one of the best ways to secure access to newly generated YEC parts is to download the ZEC portfolio.
"In order to access Ycash parts, you need to have your Zcash parts at fork time in a wallet that allows you to export your private keys," Loo said. "One possible way to get your coins back is to download your ZEC wallet and make sure your coins are in the ZEC wallet when you take the fork."
Some cryptocurrency clearing houses have publicly announced that they will manage users' private keys in order to support the splitting of the network and to ensure the preservation of equivalent stocks of YEC once the derived cryptocurrency has been created. These exchanges include but are not limited to SafeTrade, BigONE, Hoo and Citex.
However, for all Zcash users who have left their coins on unsupported trading platforms, the ZEC wallet download not only secures YEC's holdings, but actually creates "perks" for the network. Zcash of origin.
"A ZEC wallet is a complete Zcash node. All those users of Zcash users who were not running full nodes are now running full nodes because they are interested in their Ycash, "said Loo.
Nevertheless, Josh Cincinnati, Executive Director of the Zcash Foundation, says that managing private keys can be a risky business.
Cincinnati told CoinDesk:
"You may end up manipulating your private key on an Internet-connected computer that may have an exploit. It is an extreme risk. It is unlikely that anything will happen, but every time you change the security model of a person in this way, it represents a risk to users. "
As such, Cincinnati states that whatever "friendly" intentions are, there are always risks badociated with "splits, forks, or other parts of the chain" that users should be aware of.
What does it mean for everyone
Henceforth, for all those who do not own ZECs or intend to hold YEC, the next split of the blockchain will simply mark the creation of a new cryptocurrency project focused on confidentiality.
Ycash at launch will be different from the Zcash blockchain in three ways.
First, Ycash will implement a refined version of the Equihash mining algorithm currently used on the Zcash network. This is intended to prevent specialized mining equipment called ASIC from operating on the newly created Ycash network.
However, over time, the ASICs can be adapted to take advantage of the modified algorithm, which is why Loo says that the long-term goal for Ycash is to get rid of Equihash completely. ProgPoW and RandomX are two basic hardware mining algorithms that the Ycash developer team is interested in.
Secondly, Ycash will apply a reduction in the founder's reward rate, which awards 20% of the rewards in bulk to a development fund on the Zcash chain of channels. On Ycash, this percentage will increase to 5% and will be fully channeled to a non-profit organization led by Loo, called the Ycash Foundation.
This reduction in the founder's reward is a key part of why Loo launched the Ycash initiative.
Loo told CoinDesk:
"I started reading on the wall that there would be a subgroup of the community that would prefer not to honor the initial promise that 90% of the money supply is allocated to users via the mining process on the free market and that key organizations in the Zcash ecosystem, including the Electric Coin Company, would likely follow this path as well. "
As such, Loo called Ycash "a precautionary step" to preserve the original promise to limit the founder's reward rate to only 10% of all newly issued coins on the network via bulk rewards.
The third and last difference will be an aesthetic change in address formats of Zcash and Ycash addresses. In order to "make it impossible" to accidentally send Zcash to a Ycash address or vice versa, Loo explains that all shielded addresses (these are private addresses on a Zcash-based network) will start with a "y" instead of A "z". ".
"With these Bitcoin forks, there was always this concern after the fork to accidentally send bitcoin to a bitcoin payment address," Loo said. "To honor the spirit of friendly fork, we have made technical efforts to change the format of the address … so it is impossible to send Zcash to a Ycash address."
And after
For all the preparation of this self-financing initiative to create a "Zcash-based chain that can be exploited on basic material and respecting the original allocation promise", Loo attributes the foundations of the idea to the founders of Zcash, Zooko and Nathan Wilcox.
Loo says that their first writings on a pluralist pluralistic future not only coined the term "friendly forks", but also laid the foundation for making Ycash a reality.
Loo said:
"It is a credit to them, both philosophically and technically, thanks to the technical bases they have laid. I hope this fork will be safer for users than [other blockchain] forks in the past. "
Since the initial unveiling of the Ycash initiative in April, Loo and his team of developers have performed three different tests of the split on the Zcash test network and one privately on the Zcash backbone.
"Because I have been a Zcash holder for a long time, I am very interested in the health of the Zcash network," said Howard. "We have spent a lot of engineering time making sure the fork goes well."
Where to look
For users who want to watch the fork in real time, the CoinGecko Crypto-Currency Market site offers a public countdown and a parts tracking chart. In addition, SafeTrade and BitFly encryption transactions, a blockchain parsing site, also support the Ycash Blockchain Browser where users can track block confirmations in real time. .
SafeTrade CEO Jeffrey Galloway said the main thing to watch for is the stability and security of the chain.
"We are looking at the stability of both channels at launch and any unusual activity," Galloway said. "There are a number of things you can look for. For example, a high number of confirmations. Have a high number of transaction confirmations [is important] before accepting exchanges. "
A network statistic used by Ouimet to evaluate the security and stability of the network is hashrate. Hashrate is a measure of the computing power provided by miners on a blockchain network to validate transactions and create new blocks.
"I would be watching the network constraints for both ZEC and YEC well to see how much computing power is left behind and is being shifted to the news," said Ouimet.
The lower the hashrate on a network, the more likely a potential attacker can catch up with a blockchain and disrupt transactional activity.
For these reasons, Galloway of SafeTrade claims that major cryptocurrency trades will probably choose to start listing Ycash as cryptocurrency after it is clear that the Zcash and Ycash networks are stable with a high number of confirmations. transaction and a hashrate.
Galloway said:
"If there are bugs in the code, they will be exploited shortly after the launch. If there are any bugs in the wallet, you will see them exploited shortly after their launch. So all the reasons why trade sometimes wait a few days after the launch before listing a coin. "
Ycash image via Samuel Adebo Mayowa
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