Bitcoin Cash set for hard fork tomorrow
2 min read- Bitcoin Cash to split into two distinct blockchains
- BCHN predicted to be more dominant
Bitcoin Cash, one of the most popular and largest crypto assets, will split into two on the 15th of November 2020. The process whereby a crypto asset splits is known as hard fork.
A hard fork tends to occur when there is no agreement on the direction the chain of a crypto asset is taking i.e. there is no agreement on what actions should be taken. This means that the disagreeing chains would break into two distinct separate blockchain versions.
The dispute centers around Bitcoin Cash ABC (BCHA) and Bitcoin Cash Node (BCHN). These chains are disputing whether to integrate an Infrastructure Funding Plan (IFP) or not.
BCHA wants to implement the IFP immediately the hard fork happens while BCHN thinks this will dissuade miners from the crypto assets. BHCN also thinks that reducing the profits of miners by 8% is a wrong idea.
Not only that, BCHN believes that the implementation of IFP will make subsequent development of Bitcoin Cash centre around one team. Thus, leading to the centralization of Bitcoin Cash which negates the decentralization aim of crypto assets.
BCHA’s plan has been met with some deep level of skepticism. Many analysts are predicting that Bitcoin’s Cash ABC plan would fail because there is only a minority number of users interested in the chain. Currently, BHCN chain is being used by over 80% of miners.
How exchanges are preparing for Bitcoin Cash Split
Different crypto exchanges have had varying levels of preparation for Bitcoin Cash hard fork.
Coinbase, for example, has said that it would temporarily stop all transactions on BCH for a while. It said this has become necessary till when the next level of upgrade becomes quite stable.
The US based crypto exchange firm also predicted that BCHN would become the dominant chain.
BitGo however feels this fork lacks the necessary support to succeed. Thus, the firm feels that the fork might not survive. The firm further added that it would stop all of its services related to BCH at least 12 hour before the fork begins.
