July Hard Fork on BNB Chain Focuses on Strengthening Security and Mitigating Blockchain Exploit Risks

July Hard Fork BNB Chain is gearing up for its upcoming “ZhangHeng” upgrade, set to take place later this month, with developers anticipating significant improvements in security features, according to recent announcements on Wednesday.

July Hard Fork on BNB Chain Focuses on Strengthening Security and Mitigating Blockchain Exploit Risks

With network security being an ongoing concern in the cryptocurrency markets, the July hard fork on BNB is scheduled for July 19, 2023, at 6:00 UTC. A July hard fork on BNB denotes a permanent alteration in the operational structure of a network through a software upgrade. No new BNB tokens will be generated as part of this upgrade, and the participation of two-thirds of all BNB Chain validators is required to upgrade their nodes in order to process blocks post-upgrade.

Validators, the entities that utilize computing power to process transactions and maintain network security through nodes or blockchain software, play a vital role in this process.

As outlined in the BEP-255 proposal, developers plan to introduce user balance tracking within each block, facilitating the identification of any potential issues. In the event of a reconciliation error, the blockchain will enter a “panic” state, ceasing the production of new blocks.

Developers stated on GitHub, “If a reconciliation error occurs, the blockchain will stop producing new blocks, impacting downstream services such as bridges, deposits, and withdrawals on exchanges. This drastic action is necessary to protect the chain and its users, so core developers and community members should investigate the issue as soon as possible.“

These measures aim to safeguard users’ token holdings during exploit scenarios, particularly in bridge attacks. Bridges are blockchain-based tools that enable the transfer of tokens across different networks. While they serve as a crucial part of the crypto ecosystem, bridges are susceptible to vulnerabilities, with bridge-based exploits resulting in losses of approximately $2.66 billion in recent years, according to DefiLlama.

The “ZhangHeng” upgrade on the hard fork on BNB Chain underscores the platform’s commitment to enhancing security measures and protecting users’ assets in the face of potential threats and vulnerabilities.