The latest update of the Bitcoin Cash network ( BCH ) has resulted in a complex battle, and the blockchain has been divided into two: BCH ABC is in one corner, and BCH SV in the other.
This is what both defend, and who is currently winning the hash war.
BCH, ABC, SV: Who is fighting and why?
Bitcoin Cash emerged on August 1, 2017 after leaving the original Bitcoin blockchain (BTC) through a hard holder.
The separation occurred in an attempt to manage the BTC scalability problem. Part of the Bitcoin community, led by Roger Ver , joined to increase the size of the Bitcoin block. Specifically, they wanted to see Bitcoin prosper as a transactional currency, not as an investment asset, citing the white paper of Satoshi Nakamoto and parts on anonymous transactions. After encountering resistance from the rest of the community, a bifurcation turned out to be the only option for the BCH to be created.
Twice a year, the BCH network makes rigid forks as part of scheduled protocol updates. The last bifurcation, scheduled for November 15, was interrupted by a competing proposal that was not compatible with the original roadmap. As a result, the BCH community was divided into three fractions: Bitcoin ABC, Bitcoin Unlimited and Bitcoin SV. Cointelegraph has treated the nature of those parts in a separate article . Here is a brief summary:
Bitcoin ABC (Adjustable Blocksize Cap) represents the conservative wing that aims to preserve Bitcoin Cash from radical changes. It is directed by Roger Ver, among others, and has strong support represented by Bitmain , as well as important exchanges Binance , Coinbase and others.
His wing believes that the basic structure of BCH is “solid” and “does not need any radical change”. However, the Bitcoin ABC roadmap leaves some room for the development of the network and the minimization of transaction costs, which seems to be its main priority.
as, Bitcoin SV (Vision of Satoshi) , on the other hand, was founded on August 16 – just before the fateful bifurcation – by a block chain development company affiliated with Craig Wright , who had previously declared himself Satoshi Nakamoto . It has the support of specialized media such as CoinGeek, CalvinAyre and Bitcoin.org.
The reformers try to restore “the original Satoshi protocol” by changing the current BCH structure. Specifically, that would involve completely overwriting the Bitcoin ABC network scripts and increasing the BCH block size from 32MB to a maximum of 128MB to increase the capacity and scale of the network.
There is also a neutral wing represented by Bitcoin Unlimited, whose leaders have proposed a compromise solution called “The Bitcoin Unlimited Strategy for the November 2018 Bifurcation”. Essentially, that proposal suggested the possibility of changing both the ABC of Bitcoin and the Bitcoin SV, thus giving the miners the possibility to vote during the difficult phase.
Hash War: Conservatives are winning
On November 15, the miners who supported both implementations initiated the bifurcation process. As a result, at approximately 1:00 pm EST the first ABC block was found by the mining group Bitcoin.com at the height of block 556767. Several minutes later, at 1:22 pm EST, the SV miners processed the block 556767 in a separate chain. Thus, the block chain BCH was divided into two chains, BCH ABC and BCH SV, respectively.
To affirm the dominance of BCH ABC, its ally Jihan Wu, co-founder of Bitmain , allegedly mobilized part of its mining force. He was quoted to Jihan saying:
“I do not intend to start a war with [Craig Wright] , because if I do it – relocating the hash power of BTC mining to BCH mining – the price of BTC will fall below annual support; over $ 5,000, but because [Craig Wright] is relentless, I’m willing to fight to the death! “Jihan Wu, co-founder of Bitmain
Reportedly, Roger Ver’s mining company, Bitcoin.com, also announced that it will redirect the hash power of BTC to BCH ABC, albeit only for a day.
In response, Craig Wright, of Bitcoin SV, argued that only continuous mining would determine the winner. “The competition continues until one dies, since we do not stop,” he announced on Twitter.
According to the statistics of forl.lol , the general hashrate index of the BCH has increased from 9.54% to 15.43% during the period from November 10 to 17, which covers most of the battle with fork . As a result, BTC’s hashrate decreased seven percent during those days, from 90.46 percent to 84.57 percent. This illustrates that, in fact, a considerable amount of mining energy had been moved from BTC to BCH during the peak rush hour. This, in turn, could have affected the price of BTC, according to Wright’s threatening comment mentioned above, and therefore to the crypto market in general, which has fallen noticeably last week .
The exchanges begin to deliver the ticker from BCH to BCH.
Initially, many of the main crypto bags , including Coinbase , Bitstamp and Poloniex , among others, had interrupted operations and withdrawals from the BCH for an indeterminate period of time, waiting for the dust to settle.
However, although Craig Wright has declared “continued competition until one dies” and the conflict continues technically, BCH ABC seems to be the current leader. According to Bitcoin Cash Coin Dance data aggregator statistics , BCH ABC is two blocks ahead of its rival, BCH SV, at the time of publication, although the juxtaposition briefly changed in favor of BCH SV at some point.
However, what is more important, BCH ABC has accumulated more job tests (PoW) than BCH SV by almost 50 percent, while their respective hashrates are almost identical at this time.
On November 16, the Binance broke the silence, having completed the distribution of Bitcoin Cash ABC (BCHABC) and Bitcoin Cash SV (BCHSV) to its customers in a ratio of 1: 1, and opened the negotiation in both pairs. Currently, the BCHSV / USDT pair is trading at $ 123.62, while the BCHABC / USDT is set at $ 287.
In addition, in the coming days, more than 10 large stock exchanges have assigned the “BCH” ticker to the BCH ABC ruleset, thus naming the winner in this complex fight. These exchanges include Bittrex, Kraken, Bitstamp, Coinbase, among others . Some of those services are still negotiating with BCH SV under the BCHSV ticker, while Binance CEO Changpeng Zhao has taken to Twitter to announce that both tickers – BCHABC and BCHSV – “will stay”.
BCH, in turn, has been losing its value since November 7. It is priced at $ 384 at the time of publication, according to CoinMarketCap.com , with a drop of approximately 30 percent in the last 10 days. Meanwhile, the rest of the market is recovering, as most cryptocurrencies are experiencing slight gains at the time of publication.