Zcash Prepares for NU7 Network Upgrade Amid Efficiency Improvements

Zcash is set to undergo its next major network upgrade, dubbed 'NU7', which will significantly alter the way transactions are processed on the platform. According to a recent announcement, the upgrade is scheduled for November 5.

The main goal of NU7 is to reduce the block interval from 75 seconds to 25 seconds, which will enable faster transaction processing and lower waiting times for users. This change will also increase the number of blocks generated per day by approximately three times, making the network more efficient.

However, this upgrade comes with some caveats. As a result of NU7, the Zcash protocol developers plan to maintain the existing halving period, which means that the block reward will continue to decrease over time. To mitigate this issue, the Network Sustainability Mechanism (NSM) will be introduced. NSM involves temporarily removing transaction fees from circulation and recording them instead.

The impact of NU7 on users' wallets is expected to be minimal, but some full nodes and indexers may experience changes due to the introduction of new transaction formats.