A Few Things You Should Know About BitcoinCash Hard Fork

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A Few Things You Should Know About BitcoinCash Hard Fork

Perhaps the most famous crypto created by splitting from Bitcoin and the fourth-largest cryptocurrency bitcoin cash has undergone a new fork creating a new cryptocurrency Bitcoin Cash Satoshi’s Vision.

New cryptos created due to the fork are called Bitcoin ABC (core Bitcoin Cash) and Bitcoin SV (Satoshi’s Vision) – a new cryptocurrency.

What is a hard fork

Hard fork typically occurs when developers and miners don’t agree on a proposed change to the software, despite operating on the same blockchain. Their opinions on what the next direction of the cryptocurrency should differ. Therefore, they copy the blockchain and upgrade the software. The original blockchain copy continues running under the original rules. The result is the creation of two different blockchains not able to communicate one with another. This leads to the formation of two different digital currencies.

Why split BCH to and ABC and SV?

The decision to split bitcoin cash into two came after developer Amaury Sechet made a minor change to transaction ordering.

The disagreement escalated and has pitted two of the greatest crypto personalities against each other, Roger Ver and Craig Wright. While both are big proponents of Bitcoin Cash, often referring to the currency affectionately as the “real bitcoin”, the pending fork has split the two crypto-anarchists.

Ver has put his weight behind the new software upgrade, or the current Bitcoin Cash. But Wright – the Australian computing genius who has on a number of occasions claimed to be Satoshi Nakamoto, the pseudonym given to the creator of bitcoin – argues the software should deviate toward the original bitcoin, hence Satoshi’s Vision (SV), by raising the maximum block size to 128MB from 32MB.

Determining the success of each coin will be at the hands of miners who commit their hash power – the computing power to mine a cryptocurrency. In all likelihood, the miners will commit their power to whichever coin is more profitable to mine.

HashWars and computing power of BCH and BSV networks immediately after the fork

Hash wars following bitcoin hard fork

From the very beginning of the fork, the two groups i.e. Bitcoin ABC and Bitcoin SV supporters were competing who is going to win over more miners onto their side to have a stronger network. At one point, a group of miners of the traditional Bitcoin network even gave support to the vision of one of the two competing rivals.

Evolution of computing power of BCH and BSV 2 months after the hard fork (source: bitinfocharts.com)

As the picture clearly shows, for the time being, Bitcoin Cash ABC is the winner. As of today (3 January 2020), this crypto has a double of miners and the price is twice as high compared with the rival Bitcoin SV.

Acceptance and use of forks

Most of the major crypto exchanges, including Binance and Bitfinex, have stated that they support the hard work, meaning owners of Bitcoin Cash will receive 1:1 per new cryptocurrency once the network is upgraded. Thus far, only one major exchange has hitched its wagon to either coin.

BitMEX said in a blog post: “Bitcoin Cash is expected to conduct a hard fork upgrade on 15 November 2020. There are two competing incompatible hard fork upgrade proposals, with the associated clients being Bitcoin ABC and Bitcoin SV. On settlement, the BCHZ18 contract will settle at a price on the Bitcoin ABC side of any split and will NOT include the value of Bitcoin SV”.

In a surprising move, some exchanges have taken the unprecedented step in allowing pre-trading of both coins, a move that Bitcoin SV proponent Wright has criticized, adding that it may be in breach of U.S. short selling rules by allowing trading in a coin that doesn’t actually exist.

One of those exchanges Poloniex, argues pre-trading gives the crypto community the power to decide which coin they want to support. “We believe the responsible thing to do in this case remains neutral and allow the community to decide which chain to support, and we want to empower the community to demonstrate their support through trading activity”.

Price of BCH and BSV

Bitcoin Cash had been trading in volatile fashion ahead of the hard fork, rising as much as 30% on 7 November 2020 from USD 420 to USD 629. In the aftermath of the fork, on 17 December 2020, the price (of Bitcoin Cash ABC) plummeted by 80% to USD 76.

Bitcoin Cash SV achieved its high (USD 243) a day before the fork. Following the fork, on 23 November 2020, the price fell to USD 39 and later stabilized at around USD 100 USD, where it has remained until now.

More names for BCH

It is odd that each exchange uses different names for the two cryptocurrencies. You may encounter the following ones:

  1. Bitcoin Cash Satoshi’s Vision called
    • BSV, BCHSV, Bitcoin SV, Bitcoin Satoshi’s Vision
  2. Bitcoin Cash ABC called
    • BCH, BCHABC, Bitcoin Cash, Bitcoin Cash ABC, Bitcoin ABC

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Bitcoin Cash News: Upgrade Lead To Hard Fork?

October 10, 2020

Recent Bitcoin Cash news that has announced a November protocol upgrade has led to a serious difference in opinion. In fact, things got so heated that many are wondering whether BCH will have to go through a hard fork as a result. So far, the community has classified all the network changes as only recommendations, instead of ‘a consensus’.

The changes that are ‘recommended’ include enforcing a minimum transaction size, enabling two new opcodes, removing topological transaction order constraint, enforcing a new rule called “push only” for scriptSig, as well as enforcing canonical transaction order, and a rule called “clean stack”.

Bitcoin Cash news leads to a civil war

After the Bitcoin Cash news of the upgrade was announced, a large dispute followed. At it center, there is Bitmain Technologies, with its co-founder Jihan Wu. Against Bitmain, there is CoinGeek, which is led by Calvin Ayre.

The new update is scheduled to arrive on November 15th. However, as this date approaches, tensions are only getting higher from both sides. Each of the mining giants has their own ideas for the software update, with Bitmain claiming that the network should allow developers to create new tokens, as Ethereum’s does. Additionally, Bitmain wants a token burn, which is an idea also backed by Roger Ver, who is also known as ‘Bitcoin Jesus’.

As expected, CoinGeek is against these ideas, and it started rallying behind another software upgrade, going by the name of Bitcoin SV. This would revert the network back to some older characteristics, which were a part of Bitcoin’s original network. Additionally, it would increase Bitcoin Cash block size to 128 megabytes. Basically, the block size would quadruple in size.

Is hard fork the only solution?

So far, the dispute seems to be an unsolvable issue, except via a hard fork. Both sides wish BCH to change in accordance with their own wishes, and in the meantime, the consensus is still not achieved. November upgrade approaches quickly, and if the solution is not found soon, the fork can definitely be expected.

This is why Bitcoin Cash community needs to make a choice before the time runs out, and the deadline arrives. Whatever happens in the end, the current situation puts Bitcoin Cash at the center of yet another dispute.

Many are also wondering how will this Bitcoin Cash news affect the coin’s price? It is no secret that BCH has suffered a lot due to this year’s bear market, which is something that it has yet to recover from. Its price has dropped from over $4,000 in January to its current $517.50.

Recent predictions seem to be optimistic, with some of them even claiming that BCH might hit $6,700 before the year ends. However, if things do not get resolved, and a hard fork is performed, this might never happen. In the end, it all comes down to the community and its decision.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

CryptoWatch

Aaron Hankin

The proposed split pits two outspoken crypto evangelists against each other

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On Thursday, Bitcoin Cash, perhaps, the most famous hard fork of bitcoin and the fourth-largest cryptocurrency, will split in two, creating a second cryptocurrency.

The two digital currencies will go by the names Bitcoin ABC (core Bitcoin Cash) and Bitcoin SV (Satoshi’s Vision).

A hard fork is when developers and miners no longer agree on a proposed change to the software, despite operating on the same blockchain. Once the fork takes place, one group of so-called nodes — computers that are connected to the network and are part of the transaction confirmation process — will upgrade to the new software and the other will operate on the old rules, creating two separate blockchains and digital currencies.

Here is a hard fork visualized, courtesy of Cointelegraph.

Hard fork

The decision to split came after a disagreement of the proposed upgrade by Bitcoin Cash BCHUSD, -0.59% developer Amaury Sechet that added a minor change to transaction ordering.

The disagreement escalated and has pitted two of the biggest crypto personalities against each other: Roger Ver and Craig Wright. While both are big proponents of Bitcoin Cash, often referring to the currency affectionately as the “real” bitcoin BTCUSD, +0.85% , the pending fork has split the two crypto-anarchists.

Ver has put his weight behind the new software upgrade, or the current Bitcoin Cash. But Wright — the Australian computing genius who has on a number of occasions claimed to be Satoshi Nakamoto, the pseudonym given to the creator of bitcoin — argues the software should deviate toward the original bitcoin, hence Satoshi’s Vision (SV), by raising the maximum block size to 128MB from 32MB.

See Roger Ver’s thoughts on the November 15 hard fork below:

Determining the success of each coin will be at the hands of miners who commit their hash power — the computing power to mine a cryptocurrency. In all likelihood, the miners will commit their power to whichever coin is more profitable to mine.

To date, consensus among the industry is that Bitcoin ABC should prevail in the war of the miners. However, Coin Dance, a data monitoring website has said it projects Bitcoin SV to receive up to 60% of the computing power.

For crypto exchanges, most of the major crypto exchanges, including Coinbase, Binance and Bitfinex, have stated that they support the hard fork, meaning owners of Bitcoin Cash will receive 1:1 per new cryptocurrency once the network is upgraded. Thus far, only one major exchange has hitched its wagon to either coin.

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“Bitcoin Cash is expected to conduct a hard fork upgrade on 15 November 2020. There are two competing incompatible hard fork upgrade proposals, with the associated clients being Bitcoin ABC and Bitcoin SV. On settlement, the BCHZ18 contract will settle at a price on the Bitcoin ABC side of any split and will NOT include the value of Bitcoin SV,” BitMEX said in a blog post.

In a surprising move, some exchanges have taken the unprecedented step in allowing pre-trading of both coins, a move that Bitcoin SV proponent Wright has criticized, adding that it may be in breach of U.S. short selling rules by allowing trading in a coin that doesn’t actually exist.

One of those exchanges, Poloniex, argues pre-trading gives the crypto community the power to decide which coin they want to support. “We believe the responsible thing to do in this case is remain neutral and allow the community to decide which chain to support, and we want to empower the community to demonstrate their support through trading activity,” Poloniex said in a press release.

Bitcoin Cash has been trading in volatile fashion ahead of the hard fork, rising as much as 50% in November, before falling 21%.

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