Bitcoin Cash Hard Fork: What To Expect?
Bitcoin Cash Network carries out hard forks twice a year as a part of scheduled upgrades. Usually, It doesn’t have any effects on the network. However, this year’s hard fork will be different.
A Hard fork is a difficult operation to comprehend. Not only Bitcoin Cash has had its hard forks. There was Litecoin hard fork earlier this year. Ethereum also had its hard fork. There have even been cases when the coin had a hard fork, not knowing about it (the Verge hard fork).
In August 2017, Bitcoin Cash separated itself from the Bitcoin network and created a new blockchain. That’s how the new currency was born.
Bitcoin Cash fork
To understand that process, we have to go back in time. On August 8th, Bitcoin ABC (the leading implementation of the Bitcoin Cash network) issued a proposal for network’s new consensus protocols.
However, there was this other guy…
Craig Wright, a prominent member of the Bitcoin community, often distinguished as Satoshi Nakamoto, created Bitcoin SV (BSV). The new implementation was announced by a blockchain research firm nChain only eight days after the Bitcoin ABC proposal. The BSV wants to replace the ABC’s scripts and the expand block size from 32MB to 128MB. The two ideas couldn’t work together, so it became clear that a schism has to be conducted.
— Dr Craig S Wright (@ProfFaustus) 4 listopada 2018
Andrew Stone, the lead developer of Bitcoin Unlimited, has proposed a third plan which could bring together two conflicted parties. BUIP098 aims to implement the changes submitted by both BABC and BSV. The new solution could be activated through BIP 139 (miners voting).
Nobody can’t predict the future
At this moment, there are not many facts. However, we have some leads, how the hard fork could look like.
So, there are four major options: Bitcoin ABC, Bitcoin SV, BIP 139 and the current BCH implementation. According to the Coin.Dance, at the time of this writing, the nodes of the network will break down as it follows: BABC (53%), BIP 139 (38%), BSV (5%) and other proposals (4%). At the same time, almost half of public nodes are happy with the current implementation.
The Bitcoin Cash hard fork is scheduled for 15th November, 4:40 PM UTC.
Support means…being impartial?
Binance, the second largest cryptocurrency exchange in the world, has declared its support to upcoming hard fork. The exchange doesn’t clarify which side they will back up, though. In the statement, the platform also stated:
“Deposits and withdrawals of Bitcoin Cash will be suspended starting from 2018/11/15 3:00:00 PM (UTC). Please leave sufficient time for deposits to be processed in full prior to this time. We will handle all technical requirements involved for all users holding Bitcoin Cash in their Binance accounts.”
Also, Binance supports almost every hard fork. It doesn’t necessarily have to mean support of the new coins. The statement doesn’t even make it clear if the platform will enlist eventual new cryptocurrencies.
Many crypto investors are skeptic about creating a new coin. On Reddit, many users suggest that there won’t be any new coin.
BCH owners can also use Ledger to secure their coins. The coin wallet company said that it would support the dominant chain after the fork.
The split of the Bitcoin Cash will be supported by many other ventures including Coinbase and Bitcoin.com.
Fluctuation on the market
The price for BCH went from $425 to $570 in only 3 days. On November 2nd, Binance and few others companies revealed their stand on the hard fork.
The whole market has reacted to that. Almost every coin has increased its price. Among the most significant cryptocurrencies, Ethereum, LiteCoin, Ripple, Cardano and Dash we have seen sufficient growth. Only Bitcoin has suffered the loss.
Image by Yuri Shebalius / shutterstock.com
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