The great development debate: The upcoming Bitcoin cash hard fork
|Of all the defining moments since the advent of Bitcoin, the split between core developers on August 1, 2017, that resulted in the hard fork and subsequent creation of Bitcoin Cash (BCH) is arguably one of the most memorable. To this day, the debate and controversy surrounding the birth of Bitcoin Cash remains heated.
Bitcoin supporters maintain that smaller blocks are essential to allow a greater number of nodes to run on the network, thereby increasing Bitcoin's level of decentralization. Bitcoin Cash backers are comfortable with the tradeoff of fewer nodes run by larger entities for larger blocks allowing for faster and cheaper transactions.
Those in the Bitcoin camp view Bitcoin's primary use as a store of value, while Bitcoin Cash supporters believe that it should be a medium of exchange and act, effectively, as electronic cash. Tensions run high to this day with Bitcoin Cash's primary advocate Roger Ver tweeting out on the anniversary of the Bitcoin whitepaper:
"On the 12th anniversary of #Bitcoin imagine being someone who denies that it was always meant to be a peer to peer electronic cash system. #BitcoinCash"
The comment was accompanied with mocking emojis.
The argument is certainly valid as the Bitcoin network is yet to find a viable solution to its scalability issues. We do indeed see higher transaction fees and network congestion as more users onboard. However, at Bitcoin's true core is its decentralization as the longest chain with the most Proof of Work in existence. Even if transaction fees and times are higher than we would like, the network has never made a tradeoff when it comes to this most important quality.
Bitcoin Cash vs Bitcoin SV
Bitcoin Cash went on to be a successful altcoin of its own, although it never reached the level of support, market capitalization, or computational power that the original cryptocurrency, Bitcoin, has. It would also not be the end to the debate over increased block size. On November 15, 2018, the proponents of Bitcoin Cash again found themselves subject to another contentious fork.
The two camps argued over block size and degrees of decentralization, with Bitcoin SV (Bitcoin Satoshi Vision) led by self-proclaimed Bitcoin inventor Craig Wright, and Calvin Ayre, who wanted to increase the size to 128 MB. Bitcoin Cash ABC (Adjustable Blocksize Cap) spearheaded again by Ver and also Bitmain founder Jihan Wu wanted to maintain the already greatly increased block size at 32 MB.
Once again, another hard fork ensued and a new cryptocurrency emerged, Bitcoin SV. Despite the hotly contested hash wars and the drama that at times tipped the majority in favor of Wright and Ayre; Ver and Wu came out on top and Bitcoin ABC maintained the BCH ticker, and a significantly higher ranking and monetary value than BSV.
The 2020 Bitcoin Cash Fork
In all development projects, there are always differences of opinion as to the best way to proceed to achieve improved user experience, adoption, efficiency, and incorporate upgrades. Yet, most projects are able to manage their differences by coming to agreements. If upgrades to the software are needed, in Proof of Work chains, they are usually implemented in the form of a soft fork.
However, Bitcoin Cash seems to be plagued with differences of opinion among its members since its inception and now we find ourselves about to witness yet another contentious hard fork for which the outcome is still unknown. It's not over block size this time, however, but a dispute over the continued funding of the project.
The camps are split between Bitcoin ABC who wants miners to pay an 8% tax to developers to continue to fund the network, and Bitcoin Cash Node (BCHN), whose most vocal advocate Roger Ver, believes that this is the equivalent of "a Soviet style central planner’s dream come true." In other words? They are vehemently opposed.
So what's going to happen? We could see a repeat from two years ago and see the emergence of two completely viable chains, in which case, BCH holders will receive two new assets, BCH ABC and BCHN, and whichever chain has the highest price, will receive the BCH ticker. On the other hand, it's possible that only one chain remains viable at the end.
The latest data from Coin.dance certainly shows the scales tipped in BCHN's favor with more than 70% of the last 1,000 blocks mined showing support for it. However, nothing is certain and we shall be watching developments keenly to protect the interests of our users.
Whatever the outcome, OKEx will support the upcoming Bitcoin Cash hard fork, and have laid out our plans for all eventualities as we continue to witness iteration and innovation in the space.
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