BNB Chain is set to launch its ZhangHeng upgrade later this month, with developers claiming it will significantly enhance security features for users. Network security has been a long-standing issue in the crypto markets, and the hard fork is scheduled to take place on 19th July 2023 at 6:00 UTC. This hard fork is a permanent change in the way the network operates, and no new BNB tokens will be issued. Two-thirds of all BNB Chain validators must upgrade their nodes to process blocks after the upgrade. Validators are entities that use computing power to process transactions and maintain network security via nodes, or blockchain software.
According to the BEP-255 proposal, user balance changes will be tracked in each block and reconciled to identify any issues. If a reconciliation error occurs, the blockchain will panic and stop producing new blocks. If a reconciliation error occurs, the blockchain will stop producing new blocks, impacting downstream services such as bridges, deposits, and withdrawals on exchanges, developers wrote on GitHub. 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 methods could help protect users’ token holdings in the event of exploits, such as bridge attacks. Bridges are blockchain-based tools that allow users to transfer tokens between different networks. These are a key, yet highly vulnerable, part of the crypto ecosystem, with DefiLlama reporting that $2.66 billion has been lost to bridge-based exploits in the past years.