Cryptocurrencies

Bitcoin Cash (BCH) has forked into two chains, again! – Cryptocurrencies

Black shoes standing at the crossroad

1.5 million Bitcoin Cash (BCH) had been deposited on the exchanges as the fork approached. The break has happened, has it been consumed? The hard fork unfolded against the backdrop of tensions among BCH miners. Some simply do not accept to be taxed to participate in the development of the network, taxation deemed contrary to the very principle of decentralization.


Binance offers the last block

Bitcoin Cash split into 2 new blockchain networks, following the hard fork in block # 661648 : Bitcoin Cash Node (BCHN) and Bitcoin Cash ABC (BCH ABC).

Binance had mined the last common block # 6616147. It seems that the BCH ABC has not yet received any hashpower, so it is highly likely that Bitcoin Cash Node become the dominant blockchain program BCH.

AntPool mined the first block of BCHN and since then, the hashing power has largely been in favor of the latter.

Before the fork, 80% of miners had taken a position in favor of BCHN. The developers of BCH ABC, led by Amaury Sechet, had proposed an update of the network that included a funding rule called the ” Coinbase Rule “.

The latter has the allocation of 8% of BCH mined to a fund dedicated to the investment and development of the protocol.

A revolt against the mining tax

This update is not unanimous in the community BCH ; some miners have simply removed this “mining tax” from their source code.

Before the hard fork, the price of BCH recorded a significant drop of 7.5%, from $ 256.82 to $ 237.54 according to data from CoinDesk.

If the BCH ABC failed to attract enough miners to ensure its viability, then it could theoretically disappear.

The majority of exchanges have announced that they will support the BCHN which will therefore probably end up inheriting the acronym BCH.

Pub

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The coexistence of 2 networks is part of the game during a hard fork, but it jeopardizes the integrity of the entire network. The BCHN is making a risky bet in trying to attract a large part of the BCH miners, while also taxing them. The revolt rumbles – like in the middle ages. If BCHN succeeds, could this model inspire other crypto projects? Only Bitcoin (BTC) would then escape this type of taxation? Decentralized taxes: it was still necessary to think about it! Does it work best when the government imposes it?

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