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The so-called "hash war" on the future of bitcoin money is over – and what remains remains a persistent rivalry between the forces behind what are now two distinct cryptocurrencies.
Created in November, when the blockchain suffered a controversial system-wide update (also called hard fork), it remains a bitcoin money community segment that follows a new software protocol called Bitcoin Satoshi's Vision, or BSV .
With the remaining community after a competitive implementation of bitcoin money called Bitcoin Adjustable Blocksize Cap, or ABC, the expectation shortly after the split was that one blockchain would quickly outweigh the other.
In part, these expectations were fueled by the rumors of an upcoming "hash war" in which SV advocates would redirect computing energy also called hash power – normally used to extract blocks on a blockchain – to sabotage operations on the ABC chain.
But after the heavy blow that led to the division of the cash bitcoin blockchain, Craig Wright – the only satraism of Satoshi Nakamoto, chief scientist of nChain and one of the leading leaders for BSV – denied plans for chain attacks, instead he asked for a strategy called "hunting for persistence".
He told CoinDesk:
"This is long-term, people must understand that we are not taking the easy and fast way and if they do not like it, it's too bad."
Now, almost a month after the crossroads, supporters of the SV side, including Wright, are focusing their efforts on developing the SV brand and attracting user and business adoption.
Although on this front, Roger Ver – CEO of bitcoin.com and frank supporter for Bitcoin ABC – claimed in a CNBC event in Tokyo last week the SV side was still losing.
"The ABC version of bitcoin money has more hashrates, more exchanges, more portfolios, more everything.The BSV currency – I wish them good luck – but it's a separate project and it's not a bitcoin money.They have … less everything", said Ver.
Therefore, the two currencies – although no longer engaged in a battle for a prolonged calculation energy or for the power of hashes – are nevertheless in fierce competition with each other to reach the maximum degree of adoption by users.
After all, the original vision of bitcoin money, still supported by Bitcoin supporters ABC and SV, is the creation of a global peer-to-peer payment network.
Both see the definitive use case for their respective cryptocurrencies as a digital form of cash, some advocates of the Bitcoin SV side even say that in the long run there will be only a cryptocurrency.
Speaking with CoinDesk, Lorien Gamaroff, CEO of the BSV portfolio, said:
"There will be a bitcoin, I think all these other coins – all these thousands – will disappear and only bitcoins [SV] it will survive and this is bitcoin in its original form. "
A "pro-business" move
Escaping the original bitcoin project in an important way, the bitcoin ABC developers implemented a polemical update five days after the bitcoin's cash subdivision.
The changes to the network were twofold:
- Finalization of the block: the block history on the ABC blockchain of bitcoins can be reorganized – or "reorganized" in short – up to ten blocks. This means that transactions in a block with a minimum of 10 blocks have been finalized. In other words, these transactions can not be changed even if a longer version of the ABC chain proposes an alternative transaction history.
- Reorg Threshold: In addition, for a long-lived ABC bitcoin chain to reimpose even less than ten of the most recent validated blocks, the chain length must contain twice the number of blocks compared to the reorg number. This means that for an opposing chain to attempt a four-block reorg, this chain must present not only five blocks but eight but just returned.
In addition to preventing a minutely dangerous version of ABC bitcoin blockcoin from overtaking the network, this update called "Bitcoin ABC 0.18.5" offers advantages for companies and exchanges of cryptocurrencies operating on the network.
Speaking with CoinDesk, Tanooj Luthra – former Coinbase engineer and current CTO for the launch of Elph blockchain – explained:
"Surely it is a pro-business movement, portfolios, heavy operations … If you do not have a certain guarantee that a transaction has been finalized as you can actually use the currency? How can you actually buy an asset with it?"
Considering the traditional guarantee of "working proof" or the longer chain as an ideological preference, Luthra explained that in practice the dependence on hash power has no practicality for the smaller cryptocurrencies like the ABC bitcoin.
As such, it has provided for the strengthening of support from exchanges and companies that exchange funds on the network as a result of this update.
At the Luthra point, three cryptocurrency exchanges – Coinbase, Bitso and Gemini – have since then assigned the "BCH" symbol of bitcoin cash to the Bitcoin ABC blockchain. Furthermore, they refrained from adding support for users wishing to negotiate the Bitcoin SV cryptocurrency, citing the continuing "uncertainty" about its future as in the case of Gemini.
Outside of these three, other exchanges allowed support for Bitcoin ABC and Bitcoin SV or by allocating the bitcoin cash symbol to Bitcoin ABC or differentiating it from Bitcoin SV as "BAB / BCHABC". These exchanges include but are not limited to: OKEx, Kraken, Poloniex, Bitfinex, and CoinEx.
The ingredients of "sound money"
And although Bitcoin SV is currently unlisted by some trade in cryptocurrencies, it is the value of the exchanges that allow SV trading to rise in the last few days almost on par with the ABC currency.
Having been struggling with last week on the five stock exchanges listed above, ABC bitcoins seem to have a slight advantage over the other, both valued below $ 100 at the time of publication.
Confident that the SV platform will "increase" in terms of profitability over time, Steve Shadders – developer of Bitcoin SV and director of solutions and engineering of nChain – told CoinDesk:
"Substantial companies and organizations have committed themselves to building on the SV blockchain … I am very confident about the future of bitcoin SV because the companies that are committed to supporting us are those that have real sustainable business models".
Pointing to the official bitcoin SV website, Shadders noted that two dozen cryptocurrency services and ten different wallet applications currently support the nascent blockchain network.
One of these same companies is Centbee, Gamaroff added that his beliefs about the blockchain SV have come to believe in his future as "sound money".
Rejecting all new and controversial changes to the protocol – aside from block size increases – bitcoin SV advocates like Gamaroff believe in "a fixed protocol set on stone".
"Every coin out there wants to be sound money, but nobody realizes that to be valid, it must be immutable," said Gamaroff.
Echoing these sentiments, Ryan X Charles, CEO of MoneyButton, an online payment tool listed to operate on the SV network, told CoinDesk before the split that "the burden on businesses" of continuous changes to the protocol was "well-intentioned but not based on managing a … business."
At the same time, supporters of ABC such as Luthra argue that code changes – as opposed to reducing the stability of a network – are healthy signs that indicate prolonged usability.
Speaking with the latest update of ABC 0.18.5, he told CoinDesk:
"It's really a good sign [ABC developers] they are trying to get a more widespread adoption and make things a little more usable and a little bit. more practical. "
Although several companies, such as CoinText and BitPay, have already announced their support for the new ABC bitcoin network, a complete list to indicate the relative number of competing services on ABC has yet to be created.
As a result, with the arrival and the abandonment of the bitcoin war in cash, it is unlikely that the renewed battle between these two camps will be resolved on the basis of the power of hashish. Leaving it to market forces now to decide the fate of bitcoins ABC and SV, the key question to ask to move forward will be: who is using what network?
Image smoke via Shutterstock
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