In a move aimed at strengthening the security and stability of the BNB Beacon Chain, Binance, one of the world’s leading cryptocurrency exchanges, has announced the addition of a BNB Beacon chain hard fork feature known as ‘Panic.’ This innovative functionality allows for the immediate halt of the blockchain in emergency situations, offering an extra layer of protection against potential vulnerabilities and network attacks.
The BNB Beacon Chain mainnet is scheduled to undergo the “ZhangHeng” hard fork around July 19, introducing a series of upgrades with a focus on enhancing security. According to a statement released by BNB Chain on July 12, the anticipated “ZhangHeng” upgrade is planned to be implemented at block height 328,088,888, projected to occur on July 19.
Introducing BEP-255: On-Chain Asset Reconciliation to Enhance Security
As part of the upcoming BNB Beacon chain hard fork, the Binance Evolution Proposal BEP-255 will be introduced, aiming to incorporate “on-chain asset reconciliation.” Binance believes that this implementation has the potential to minimize the impact of possible cross-chain bridge exploits, such as the Binance Smart Chain exploit that occurred on October 7, 2022.
Ensuring the security of assets on the BNB Beacon Chain itself is crucial, particularly in light of past bridge exploitations, despite the implementation of enhancements like BEP171, stated the Github post addressing BEP-255. Binance further clarified that the BEP would introduce a mechanism where user balance changes will be meticulously tracked in every block, allowing for comprehensive reconciliation to detect and address any potential issues.
“When there are reconciliation errors, the blockchain will panic and stop producing new blocks.”
Binance emphasized that the measures taken would have an impact on downstream services like bridges, exchange deposits, and withdrawals. However, they justified this “drastic action” as necessary to safeguard the integrity of the chain and protect its users. Restoring the blockchain’s functionality would necessitate a hard fork and addressing the reconciliation error at hand. The statement further clarified, “For instance, in the presence of any exploit, relevant accounts should be either blacklisted or rectified. Once the blockchain is reactivated, downstream services can also be restored accordingly.”
Enhancements Including Rogue Key Attack Mitigation and Other Upgrades
Among the various changes, an important bug fix has been implemented to counteract “Rogue Key Attacks,” which involve malicious actors generating a valid aggregate signature for a transaction without the genuine private key owner’s authorization. To rectify this bug, the upcoming hard fork will clear all existing vote addresses once the specified hard fork height is reached. As a result, validators will be required to reestablish their vote addresses.
Furthermore, the hard fork aims to enhance the BNB Beacon Chain’s capabilities to handle more intricate business rules and logic, enabling it to support increasingly complex operations. Binance emphasized the importance of achieving the participation of two-thirds of validators in upgrading their software version to v0.10.16 before the hard fork. Failure to do so may lead to complications.
According to BNB Chain, full nodes that do not undergo the upgrade will be unable to process subsequent blocks once the hard fork block height is reached. BNB Chain has provided comprehensive instructions detailing the necessary steps for node operators to adhere to the hard fork upgrade. However, it clarified that BNB token holders utilizing Binance.com, other centralized exchanges, or cold wallets are not required to take action.
Binance’s BNB Beacon chain hard fork is set to undergo the “ZhangHeng” hard fork, introducing upgrades focused on enhancing security and mitigating potential vulnerabilities. The implementation of the “Panic” feature brings an additional layer of protection by enabling emergency halting of the blockchain. The upcoming hard fork also introduces BEP-255, aiming to improve on-chain asset reconciliation and minimize the impact of cross-chain bridge exploits. The hard fork requires validators to upgrade their software version, ensuring a smooth transition. Binance continues to prioritize the security and stability of its blockchain ecosystem, driving innovation and providing a robust environment for users and developers alike.
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