BCH hard forked according to plan

The sixth largest currency by market cap, Bitcoin Cash (BCH) performed its third hard fork as expected. The fork took place last Sunday, November 15, at block number 661.447, of its Blockchain.

In this way the digital currency, which in turn is a fork of Bitcoin, activated in 2017, becomes two new projects. They have been renamed Bitcoin Cash Node (BCHN) and Bitcoin Cash ABC (BCH ABC).

It should be remembered that, during the year 2018, the cryptocurrency has carried out its, up to now, last split. On that occasion, the fork (or hard fork) gave rise to two new chains. These were Bitcoin Cash ABC and Bitcoin SV. Meanwhile this Sunday’s split, it was reported, stemmed from the lack of agreements.

Why did BCH perform this new hard fork?

Among the reasons that led BCH to proceed with a new hard fork, the impossibility of reconciling positions stands out. As a result, the developers of the BCH ABC side, asked for 8% of the block rewards, pushing the final decision to fork.

“Both implementations have agreed to create a new mining algorithm. However, BCH ABC’s followers wanted a portion of the block profits (about 8%) to distribute among their team of developers. This, without doubt, would cause a centralization similar to that of other projects ”, explains the statement.

It is important to note that this split is not made up of two equal parts, as everything indicates that BTCN will be dominant. In this regard, the CoinDesk news portal reports that, as of this writing, BCH ABC has not yet received hashing power.

“The first block extracted, after the Bitcoin Cash Blockchain split, was processed in AntPool. Since then, hashing power has been on BCHN’s side as miners have processed more blocks on the network, ”the aforementioned portal clarifies.

In the absence of agreements, division

The origin of the problems for which, finally, BCH has made this new hard fork, was under the responsibility of Amaury Sechet. It is one of the developers, who proposed a tax on miners. His proposal received the sympathy of a group of colleagues belonging to that project.

The proposal of the “new rules” would be implemented through an update of the network. Once it takes effect, miners would have to pay 8% of their work earnings and would be distributed among Sechet’s BCH ABC team.

On the other hand, the proposal was largely rejected by another group of developers. This side opposite to Seche has been renamed the Bitcoin Cash Node, which removed the “tax” from the BCH source code.

Thus, in the absence of an agreement, the division of the network was planned. One group would keep the current software and the other with a new one. The execution of this new hard fork was scheduled for last Sunday, November 15, when, according to plan, it was carried out.

The price of BCH (likely to be BCHN) managed to recover from the decline immediately after a new hard fork was made on its network on November 15th. Source: CoinMarketCap

Fall and recovery

The fear of the holders of this cryptocurrency meant that the days before the hard fork performed by BCH, the sales on the exchanges increased. As a result, the price of the coin dropped from $ 256 to $ 237. However, it rose rapidly and is above $ 251 at the time of writing.

That should be taken into consideration if Amaury Sechet’s project, Bitcoin Cash ABC, didn’t have enough hashing power, it could be considered missing. Although the current hash power of this project is negligible compared to BCHN, development is still expected in the coming days.

Despite this, everything indicates that BCHN will be the big winner in this fight. The latter can be deduced, after the major exchanges gave their support to this project and considered it as the legitimate heir of BCH, even with the logo itself.

Data to be taken into consideration

At the time of writing, the BCH price marked on CoinMarketCap is $ 251 USD. It also scores a market cap of $ 4.6 billion. The contradictions between two teams of developers on the network caused the BCH split or hard fork. As expected, BCH’s hard fork took place on November 15th. BCH ABC is expected to disappear due to a lack of computing power.

Did you like the content? Share it

Related