All about the Upcoming Bitcoin Cash Hard Fork
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Bitcoin Cash Hard Fork. All you need to know.
A controversial Bitcoin Cash hard fork is set to take place this month, which may not be the first time to split the coin’s blockchain.
The proposed update, at least for the BCHN version, introduces a new mining algorithm. Later, supporters of the coin witnessed how the Bitcoin ABC development team proposed an alternative update that included an additional element that involved an 8% deduction from Bitcoin Cash miners’ block rewards.
The ABC team’s proposal, dubbed Bitcoin ABC, should place funds in the hands of its development team. This idea is nothing new as the Zcash confidential coin has had a similar fund for many years. However, members of the Bitcoin Cash community saw this as a forced divestiture.
Redirecting part of the #BitcoinCash block reward to pay the development team is a dream come true for a Soviet-style central planning system. Please stop, Roger Ver wrote this September.
— Roger Ver (@rogerkver) August 31, 2020
The network update is scheduled for November 15th and the most likely scenario is that most miners will support the BCHN version, not the ABC team version. This event is usually called the word fork, in which the blockchain is divided into two networks, each of which has its own value.
At the moment, 82% of miners have expressed disagreement with the proposal of the ABC team, but despite this, the hard fork will take place.
Crypto exchanges including Crypto.com, Huobi have said they plan to support the upgrade and the network with the highest hash power (the one with more Bitcoin Cash miners).
Major changes after the Bitcoin Cash Hard Fork:
Overall, three changes are proposed during the update. According to the Bitcoin Cash website, the network update will introduce changes to the difficulty adjustment algorithm (DAA), Coinbase rule, and automatic replay protection.
The adjustment algorithm will change no matter what, it will be replaced by the new ASERT algorithm. According to the updated page on GitHub. The main purpose of this replacement is to end the Bitcoin Cash difficulty and hash adjustments.
In addition, the replacement algorithm will equalize the profit between stable miners and miners who switch between different blockchains. This update also aims to maintain block generation intervals at 10 minutes. It is believed that along with this ASERT will bring the average transaction confirmation time closer to the estimated one.
The next feature is only the ABC update versions – the Coinbase rule that caused all the controversy. This word has nothing to do with the exchange, “coinbase” refers to a specific part of the recently mined block. It will require 8% of block rewards to be directed to a specific Bitcoin Cash address controlled by Bitcoin ABC developers.
Finally, the update will include replay protection. This is done to ensure that the validator node that is not updated will be separated from the main network after the update, which will occur on May 15, 2021.
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