BNB Chain Prepares for July Hard Fork to Mitigate Blockchain Exploit Risks

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BNB Chain is set to undergo a significant upgrade called “ZhangHeng” later this month, aimed at enhancing security features for users, according to developers. The planned hard fork is scheduled to take place on July 19, 2023, at 6:00 UTC. 

A hard fork involves a permanent modification to the network’s operations through a software upgrade. No new BNB tokens will be created during this upgrade, and it will require two-thirds of BNB Chain validators to update their nodes to process blocks after the upgrade.

Validators, which are entities that utilize computing power to process transactions and maintain network security, play a crucial role in the blockchain ecosystem.

As outlined in the BEP-255 proposal, the developers have implemented mechanisms to track user balance changes in each block and reconcile them to identify any potential issues. In case of a reconciliation error, the blockchain will cease producing new blocks, which can impact downstream services like bridges, deposits, and withdrawals on exchanges. 

The developers emphasized that this action is necessary to safeguard the chain and its users, and it requires the immediate attention of core developers and community members to investigate and resolve the issue.

The measures are aimed at protecting users

These measures aim to protect users’ token holdings, particularly during exploits such as bridge attacks. Bridges are tools that facilitate the transfer of tokens between different blockchain networks. Despite their importance, bridges are also susceptible to vulnerabilities, with bridge-based exploits resulting in significant losses of approximately $2.66 billion in recent years, according to DefiLlama.

The forthcoming upgrade to BNB Chain seeks to address these concerns and enhance the security of the network for the benefit of its users.