The Electric Coin Company (ECC) developers have revealed details about Halo Arc, a set of updates for the confidential cryptocurrency Zcash. Its launch is scheduled for October 1, 2021.
Halo Arc includes updates to Zcashd (Zcash Consensus Node), a prototype ECC wallet, and a development kit (SDK). The wallet will allow you to conduct anonymous transactions by default. Today, users use this Zcash feature at their own discretion.
Halo Arc was originally slated to launch this summer. However, it was decided to postpone the launch until October 1, 2021, so that Halo Arc will be deployed on the same day with the activation of the Zcash Network Upgrade 5 (NU5).
The October protocol update will also introduce unified addresses that will be compatible with all Zcash pools: public and anonymous. Users do not have to “balance” between several types of addresses, as sometimes new format addresses are required to work with protocol updates.
Halo Arc is a “trustless, recursive version” of zero knowledge proof. This will greatly increase scalability and eliminate the need for a “trusted install” that creates a secret number whose derivative is used by the Zcash protocol. Such a number is generated from many parts by several participants. Then they all have to destroy the “cryptographic toxic waste” without disclosing the data. If the participants collude and do not destroy this “waste”, or if the secret number is revealed, a serious breach in the protocol could be created. As a result, individuals will be able to release ZEC at random without the knowledge of other users.
“These improvements will usher in a new era of zero knowledge cryptography. Avoiding the trusted install used in the current zero knowledge proof system will provide confidence in the number of ZECs. Users of supporting wallets will be able to provide counterparties with a single address. Users will know the coins are being sent to a hidden address, regardless of whether the sender supports hidden addresses, ”said ECC Vice President Josh Swihart.
In addition to the “auto-masking” feature for NU5 compatible wallets, the Halo Arc update also includes an automatic migration of digital assets. Coins will be able to be transferred to a hidden pool supported by the wallet. This feature will make it easier to downgrade older versions of pools.
