A Few Things You Should Know About BitcoinCash Hard Fork

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Preparing for the Bitcoin Hard Forks: A Step-by-Step Walkthrough

At the moment there are two forks planned for the Bitcoin network, and cryptocurrency proponents are curious about taking the best preparations. One fork is called Bitcoin Gold which is scheduled for October 25, while the other hard fork Segwit2x (BTC1) will take place roughly around mid-November or block height 494784.

The Tale of Two More Forks

This past summer news.Bitcoin.com wrote a lot about preparing for a fork when the entire Bitcoin network and its participants experienced the August 1 blockchain split. Currently, there are two bitcoin forks scheduled to happen over the next few weeks. This means if splits happen to occur between all of them, there could be a total of four blockchains that share the same transaction history of the original Bitcoin blockchain created by Satoshi Nakamoto.

The Bitcoin Gold project is expected to fork the bitcoin network on October 25. However, the network will not go live until November 1.

The Bitcoin Gold (BTG) project aims to fork the network so they can create an Application Specific Integrated Circuit (ASIC) ‘resistant’ version of bitcoin. The reason they are forking the network is because the team thinks ASIC mining is too centralized. So BTG developers plan to make bitcoin mineable using Graphic Processing Units (GPU), by changing the original protocol’s consensus to an algorithm called Equihash. This hard fork is planned for October 25 the developers have stated, but the network itself won’t be live until November 1.

The Segwit2x project is expected to fork the bitcoin network at block height 494784

The Segwit2x hard fork is a technical compromise stemming from the New York Agreement (NYA) this past spring, between a vast majority of bitcoin miners and businesses. Some people believe the NYA compromise helped push miners to use their hashrate voting power to ultimately implement the Segregated Witness (Segwit) protocol. But the activation of Segwit came with the agreement that three months later a 2MB block size hard fork would take place. This hard fork will take place at approximately block height 494784 or roughly around November 18 depending on hashrate.

At the present time, both of these forks may or may not take place on the expected dates.

Before During and After the Forks

There are a few things bitcoin holders should know before, during and after the fork. Before the fork, users should make sure their funds are in the right place, at the right time. This means choosing to leave money on an exchange, which some folks like traders do, or hold the funds in a non-custodial wallet. Most people agree the best practice, to remain in full control of any amount of bitcoin holdings, is to maintain your own funds by possessing your own private keys. So before the fork, if users keep their BTC stash in a non-custodial wallet they should make sure they have their seed phrases or private keys available. If an individual possesses their private keys, they are in full control of their funds before and after the fork.

If a user chooses to keep funds on a custodial wallet or a centralized exchange then they should be fully aware the provider is in control. Trading platforms will cease deposits and withdrawals during a fork and may even stop trades temporarily. Users keeping money on an exchange must always know they will be ultimately subject to that business’s discretion.

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During the fork, most people would also agree that sending bitcoin transactions while the consensus change is taking place is not the best idea. People should remain patient until 100 percent of the dust has settled before they transact with the bitcoin network. There could be confusion with the fork like blockchain re-organizations, replay attacks, and prolonged confirmation times.

After the fork, it is still a good idea to remain patient, and you can start investigating reliable infrastructure for both forks before using the split networks. From here you can research how to import your private keys so you can claim split tokens, as well as wait for splitting tools from wallet and exchange providers. For instance, many bitcoin wallet users had to wait for the app maintainers to create a tool or fully support the new network that was born this summer. Some people may have to wait a few days or even weeks before wallet providers and exchanges follow through with support and special chain-splitting tools.

Replay Protection and Attacks

At the moment both of the planned forks, Bitcoin Gold and Segwit2x, do not have replay protection added to the specific project’s code. Segwit2x initially had an opt-in type of replay protection, but developers have since removed the protocol. Bitcoin Gold promises replay protection, but the code also has not been added to the Github repository. Both forks could add an opt-in version or a stronger means of replay protection before the forks happen. During a replay attack, it’s possible Unspent Transaction Outputs (UTXO) can be verified by miners on both chains making it easy for an attacker to manipulate or unknowing investors could make mistakes. Some individuals believe replay protection is necessary, while there’s also an argument against the implementation as well.

Additionally, light clients, otherwise known as Simplified Payment Verification (SPV) wallets, follow the chain with the most cumulative proof of work. SPV wallets don’t check the rules and ultimately sync transactions with the longest chain headers. Those using SPV wallets will want to make sure they are on the preferred chain. While some wallet providers let users decide on which node they should tether to, other light clients will choose for you. If you don’t like the wallet startup choosing for you, then it is probably best to move your bitcoin to a client that allows choice or is tied to the chain you prefer. You can also choose to use other wallet options like paper, hardware, and full node clients.

Hardware Wallets, Exchanges, and Full Nodes

Some people believe that hardware wallets and paper wallets are better places to keep funds during a hard fork. With paper wallets, an individual can obtain or spend their funds whenever they want after the fork on both chains. With a hardware wallet, you may have to wait for a tool to be released as hardware companies like Ledger, and Trezor had to launch firmware updates for their users regarding bitcoin cash.

Users can also choose to side with a chain of their choice by downloading a full node client. Full nodes will enforce the rules on the specific chain they are tethered to, and these types of wallets have keys that can also be imported to retrieve split tokens at a later date.

As explained above, leaving funds with an exchange during and after a fork exposes users to the will of a company’s decisions. The business may not let you deposit or withdraw between a specified period. So if you need access to funds that are on an exchange, you may not get them right away. Additionally, some exchanges may not release support for split tokens right away, and again you will have to wait. For instance, the exchange Coinbase has not yet released bitcoin cash (BCH) holdings to their customers who kept funds on the trading platform prior to August 1 and the firm aims to release the BCH in January 2020.

Keep Calm and Bitcoin On

Over the past few weeks, wallet providers and exchanges have been releasing their contingency plans, and more will likely follow shortly. News.Bitcoin.com has been covering nearly every popular bitcoin service’s contingency plan, and we will continue keeping our readers informed every step of the way. Further, our team will provide information regarding these forks before, during and after each event so users can be sure they know what’s happening throughout each period.

Lastly, we need to reiterate further that keeping private keys yourself is truly the best way to proceed during a fork, and also being patient during a blockchain split event by not sending or receiving transactions will ensure losses won’t happen.

How are you preparing for the upcoming hard forks scheduled to take place on the Bitcoin network? Let us know your game plan and thoughts in the comments below.

Images via Pixabay, Bitcoin.com, and Crypto Hustle.

Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a forum. And a casino, a mining pool, and real-time price statistics.

Everything You Need to Know About the Upcoming Bitcoin Cash Hard Fork

The fork will increase transaction speed and may allow tokens to be established on the BCH blockchain.

After several months of the doldrums, Bitcoin Cash (BCH) seems like it’s on its way back up. A week ago, on April 18th, the price of a single BCH token was worth about $770. At press time, the value of a single BCH token was $1293, a nearly 40 percent increase, despite the fact that it had fallen 16 percent from its high of roughly $1560 yesterday. BCH’s trading volume has also softly echoed its price movement

Despite this rise in valuation, BCH is still a far cry from its December heights of roughly $3,650. At the time, BCH fans were pushing for a “flippening” (for Bitcoin Cash to essentially “replace” Bitcoin). Now, Bitcoin is up to $9,272, and there isn’t much talk of replacing the BTC network at all.

The Upcoming Fork is Driving the Price of BCH Back Up

Indeed, the BCH community doesn’t seem to be pushing for major revolution; instead, Bitcoin Cash seems to have focused its efforts on becoming a network well-suited to everyday payments (something the Bitcoin network is not well-suited for.)

There are several reasons to point to when it comes to figuring out the cause of the recent rise in valuation. Some sources have cited South Korean trading; others point to signs of a larger market recovery. One factor that could uniquely be driving up the value of BCH is the upcoming hard fork that’s scheduled for the network on May 15.

A hard fork is a sort of software update to a crypto network that results in the creation of an entirely new blockchain network (and a new cryptocurrency to go along with it.)

Anyone who holds any amount of a coin that goes through a hard fork is entitled to receive a corresponding amount of the new coin. Therefore, any cryptocurrency that will experience a hard fork generally tends to see upward price movement in the days and weeks leading up to it.

For example, when the Bitcoin network forked to create Bitcoin Cash itself, the price of BTC rose roughly 10 percent within two days.

However, this hard fork is a bit different. Although (technically) there will be a new cryptocurrency created, the value of the old blockchain will be canceled. Therefore, for users, the hard fork will function more similarly to a ‘soft fork’, which is a software upgrade without the creation of a new blockchain.

Developers Want to Make BCH ‘More Reliable, More Scalable’

The May fork is the result of a meeting of seven Bitcoin Cash developers that took place in London in November of 2020. The group, which is also known as Bitcoin ABC, said that functionality was their top priority for the BCH network.

A statement released by the group following the meeting reads: “our top priority for Bitcoin Cash is to keep improving it as a great form of money. We want to make it more reliable, more scalable, with low fees and ready for rapid growth. It should ‘just work,’ without complications or hassles. It should be ready for global adoption by mainstream users, and provide a solid foundation that businesses can rely on.”

Bitcoin Cash comes with new attitude this May. A second hard-fork in less than one year, (HF is how you upgrade) to ensure BCH remains on an upward trajectory to global utility. Scalability and Scripting (smart contracts in hype-speak)
FORK TIME: Just after Tue May 15 12:00 UTC pic.twitter.com/Z3tDpdXW9m

When Bitcoin Cash was created, it was intended as a “better” alternative to the Bitcoin network. The main issue that BCH was intended to improve was scalability (which, by the way, is still a big problem for Bitcoin.)

The Bitcoin network can only process an average of 3 or 4 transactions per second because of its small ‘block size’ (‘blocks’ are units of data in which transactions are confirmed.) Bitcoin’s blocks are limited to 1 megabyte each; as it stands now, Bitcoin Cash’s block size is limited to 8 megabytes, allowing the network to process as many as 61 transactions per second.

The larger block size also means that transactions on the Bitcoin Cash network are also generally less expensive, especially in times of high network traffic on the Bitcoin network.

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Bitcoin Cash’s upcoming fork in May will further increase the Bitcoin Cash block size the 32 megabytes, which will significantly increase the number of transactions that the Bitcoin Cash network is capable of handling.

The Fork Could Establish Tokens on the BCH Network

According to a report from Stocks Gazette, the upcoming hard fork will reactivate some pieces of the original Bitcoin code that have lain dormant for quite some time. These include an opcode known as ‘OP_GROUP’ that could be used to establish tokens on the BCH network (similar to the way that ERC20 tokens function on the Ethereum network.)

If the implementation of OP_GROUP is successful, and a system for establishing tokens on Bitcoin Cash is created, the network could see a massive increase in value throughout Q2. According to AMB crypto, some of the other opcodes will lay the foundation for creating smart contracts.

The fork will also increase the upper turn size from 40 bytes to 220 bytes, a move that will allow users to add more data to the blockchain. This facilitates the creation of “colored coins” and using the blockchain to time-stamp data.

Bitcoin Cash underwent its first hard fork in fall of 2020 to improve problems with estimating mining difficulty (‘mining’ is the process by which computers on the BCH network confirm transactions.)

Bitcoin Cash Controversies and Conspiracy Theories

The Bitcoin Cash network has been the subject of much controversy and bad publicity since its inception, a fact that many in the crypto community believe to have been holding the network back.

It all started in mid-November when Bitcoin Cash briefly spiked up to $2500 before crashing to nearly $1000 within 48 hours. Before the crash, former “Bitcoin Evangelist” Roger Ver and Bitcoin Developer Gavin Andresen were singing the praises of BCH over Twitter; after the crash, some voices in the crypto community suspected a massive pump-and-dump scheme.

Bitcoin Cash was hit with another publicity blow when Coinbase suspended the trading of BCH on its platform because of allegations of insider trading within the company.

I dont care how you slice it, this is INSIDER TRADING! Someone with alot of Bitcoin knew @coinbase would add Bitcoin Cash BCH and took one BIG chunk of profit from the #flippening. Whoever you are you are your making crypto look like wall st. Shame on you. pic.twitter.com/g9YU9jGm0T

Now, Bitcoin Cash has been associated with yet another suspected pump-and-dump. TheNextWeb reported that Antpool, a subsidiary of Bitmain, has been accused of artificially boosting the value of BCH.

Antpool announced on Friday that it has recently begun “burning” 12 percent of all BCH mining rewards. The reasons given for the practice were (essentially) that Antpool wants to strengthen the BCH network. A statement from the company reads:

“While having active users spending BCH is very important for the ecosystem, having investors who hold BCH is also a fundamental requirement for maintaining a strong economy. Without these holders, BCH’s exchange value loses significant support. We believe that they too should profit from the growth of BCH by their continued stake in the Bitcoin Cash ecosystem. The transaction fees earned by miners are an important growth indicator of the BCH ecosystem, and if a portion of the fees are burnt, it is effectively miners sharing revenue with the entire BCH network.

Members of the crypto community without strong ties to Bitcoin Cash are seeing the announcement as a way to manipulate the BCH market.

A Bright Future?

While the future of Bitcoin Cash may not be as clear as many of its supporters want it to be, it’s clear that the team of developers behind the network believe in their project, and are working hard to ensure its success.

BCH remains in its position as the most successful coin forked from the Bitcoin network yet.

What Every Bitcoiner Should Know About ‘Bitcoin Cash’

In a few days the notorious August 1st is approaching, and it’s likely this day will be remembered for a long time. This week Bitcoin.com discussed the possible scenario of a user activated hard fork called “Bitcoin Cash” as much of the community doesn’t realize this fork will likely still happen despite Segwit2x’s current progress.

What is Bitcoin Cash?

Bitcoin Cash is a token that may exist in the near future due to a user-activated hard fork (UAHF) that will bifurcate the Bitcoin blockchain into two branches. The UAHF was initially a contingency plan against the user-activated soft fork (UASF) announced by Bitmain. Since this announcement, at the “Future of Bitcoin” conference a developer named Amaury Séchet revealed the Bitcoin ABC” (Adjustable Blocksize Cap) project and told the audience about the upcoming UAHF.

Following Séchet’s announcement and after Bitcoin ABC’s first client release, the project “Bitcoin Cash” (BCC) was announced. Bitcoin Cash will be pretty much the same as BTC minus a few things, like the Segregated Witness (Segwit) implementation and the Replace-by-Fee (RBF) feature. According to BCC, a few of the biggest differences between BTC and BCC will be three new additions to the bitcoin codebase that include;

  • Block Size Limit Increase – Bitcoin Cash provides an immediate increase of the block size limit to 8MB.
  • Replay and Wipeout Protection – Should two chains persist, Bitcoin Cash minimizes user disruption, and permits safe and peaceful coexistence of the two chains, with replay and wipeout protection.
  • New Transaction Type(a new fix was added, note the “UPDATE” at the end of this post) – As part of the replay protection technology, Bitcoin Cash introduces a new transaction type with additional benefits such as input value signing for improved hardware wallet security, and elimination of the quadratic hashing problem.

Bitcoin Cash will have support from various members of the cryptocurrency industry including miners, exchanges, and clients like Bitcoin ABC, Unlimited, and Classic will also be assisting the project. In addition to this help, Bitcoin Cash developers have added a ‘slow’ mining difficulty reduction algorithm just in case there’s not enough hashrate to support the chain.

Mining and Exchange Support

“We continue to remain committed to supporting the Segwit2x proposal, which has received broad support from Bitcoin industry and community alike — However, due to significant demand from our users, the Bitcoin.com Pool will give mining customers the option of supporting the Bitcoin Cash chain (BCC) with their hashrate, but otherwise Bitcoin.com Pool will by default remain pointed at the chain supporting Segwit2x (BTC).”

Bitcoin.com previously reported on Viabtc adding a BCC futures market to their exchange’s listed coins. The token has been trading at roughly $450-550 over the past 24-hours and reached an all time high of $900 when first released. Two other exchanges, Okcoin via the ‘OKEX’ platform and Livecoin have also announced they will also be listing BCC on their trading platforms. Bitcoin Cash supporters expect more exchanges to follow shortly after the fork is complete.

What Can I do to Obtain Bitcoin Cash?

Again, regardless of Segwit2x’s progress this fork most likely will happen and bitcoiners should be prepared. There are a few days left until August 1 and those looking to acquire Bitcoin Cash should remove their coins from third parties into a wallet they control.

For more information on Bitcoin Cash check out the official announcement here, and the BCC website here.

UPDATE, 28 July 2020: According to bitcoincash.org, a change (fix) has been introduced to make “New Transaction Type” to “New Sighash Type”. Following is more info on this new feature:

New SigHash Type – As part of the replay protection technology, Bitcoin Cash introduces a new way of signing transactions. This also brings additional benefits such as input value signing for improved hardware wallet security, and elimination of the quadratic hashing problem.

Written by Jamie Redman for Bitcoin.com | Original article: https://news.bitcoin.com….

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