As Monero (XMR) developers said over the weekend, on July 16, the Monero network passed community consensus to initiate a mainnet hard fork at block height 2,668,888. A hard fork of the popular privacy coin will include increasing the ring size of the chain from 11 to 16, adding view tags to the output to reduce wallet scan times, introducing bulletproofs, and implementing fee changes.
Increasing the number of ring signatures is to ensure that transactions have a larger set of anonymity, making it harder to reverse engineer the origin of transactions. One developer noted that view tags can reduce network scan times by up to 40% when obtaining output public keys for anonymous transactions. Monero’s maximum block size has been approved to grow 14x per year instead of 32x (which affects its fee value). Finally, the zero-knowledge proof system Bulletproofs will be used for range proofs for Monero. This feature will enable faster encryption and verification on the blockchain.
Cointelegraph previously reported that privacy coins have been surging recently, as household funds and individual investors appear to be increasingly holding XMR as a hedge amid the recent market turmoil. The topic of privacy coins has been controversial in the crypto community. Some pointed to their ability to ensure greater anonymity during transactions, while others expressed concern over the use of XMR to protect illicit transactions and its alleged acceptance by extremist groups. Last year, Kraken delisted XMR for its UK clients, citing regulatory pressure.