BitcoinCash Upcoming Hard Fork 15th November

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BitcoinCash

Why is a fork of Bitcoin, BitcoinCash is doing another Hard fork ?

As you already may have heard of on the 15th of November BitcoinCash is undergoing a hard fork. While BitcoinCash being a hard fork of Bitcoin itself because of scaling issues, it is now facing it’s own scaling issues.

Forks are normal and even healthy for the ecosystem as sometimes technology needs to be improved. But this time it is different. Normally you don’t even notice that a fork has taken place because the developers all agree on a certain decision so there is consensus. That will look as follow.

BitcoinCash fork consensus

BitcoinCash would be forked, but the everybody would follow the same path. That means that there is consensus and therefor it happens in the background and you don’t need to do anything. Your coins stay in your wallet as BitcoinCash. But this time it is different, there is no consensus and therefor both forks will be used. That means BitcoinCash is splitting up in two coins, Bitcoin ABC and Bitcoin SV.

BitcoinABCBitcoinSV

The reason of the fork is because of scalability. The block size of BitcoinCash is getting too small and it is not possible to just increase the block size. That will cause security issues and isn’t a right solution for the long term.

Bitcoin SV

To just increase the block size is not a sustainable solution without changing enhancements to the protocol too. Bitcoin SV software simply increases the default block size without the change of underlying enhancements to the protocol to solve the other issues the bigger block size is bringing. If you would change the block size to et’s say 128mb then a lot of other issues will appear or the system slow down and cause errors, causing the nodes dropping of the network.

Bitcoin ABC

Bitcoin ABC which stands for Adjustable Block size Cap, which indicates that users can set their own block size want to first solve the underlying difficulties in the protocol before increasing any block size.

So simply said, Bitcoin SV want to increase the block size and Bitcoin ABC first want to develop the appropriate software to handle all underlying issues with increasing the block size.

Roger Ver and Craig Wright

Roger Ver who is the main presenter of BitcoinCash and will follow Bitcoin ABC is well known for his stubborn attitude and claiming that BitcoinCash (which is a fork of Bitcoin) is “the real” Bitcoin. Roger Ver owns the domain ‘Bitcoin.com’ and is presenting BitcoinCash as the original Bitcoin. We think that is misleading and not the way you should promote your project. That would be the same as opening a factory in China producing shoes with a Look-a-like NIKE logo and sell them as real NIKES.

Craig Wright who claimed to be ‘Satoshi Nakamoto’ didn’t like the vision of Bitcoin Cash developer Amaury Sechet and therefor is going through with Bitcoin SV. 

What you need to do to prepare for the fork ?

That depends where your BitcoinCash coins are stored. Coinbase, one of the biggest cryptocurrency exchanges is backing the BitcoinCash fork which means that if you have your BitcoinCash coins in your Coinbase account, you will automatically receive the funds for either Bitcoin ABC and Bitcoin SV. The cryptocurrency exchange Binance also confirmed support for the upcoming Bitcoin Cash hard fork. BitMex also confirmed its support as well as the nano S Ledger.

Zoom out

A lot of things are happening these days as cryptocurrencies are growing and sometimes we need to zoom out just to have a look at the overall picture. Bitcoin was made to be a decentralized global currency. The problem we are facing in our economic state is inflation. That same thing is happening in the crypto space when we just keep adding new coins to our beliefs.

Bitcoin is solving the issues they are facing by developing 2nd layer solutions to the ecosystem such as the Lightning Network.

 

 

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