Bitcoin Fork

Bitcoin Fork Coming August 1, 2017

Another bitcoin fork will give way to a new coin called bitcoin cash. It is the result in a long discussion on bitcoin scaling database regarding BIP 91 investors and the bitcoin community finally resolve the issue. As BIP 91 is locked in and due to implement this coming August 1, 2017.

However, in the past few days Bitcoin seems to take a turn heading for a user activated hard fork (UAHF) called Bitcoin Cash . It is scheduled August 1, 2017, previously earmarked as the proposed date for implementation of SegWit by way of a user activated soft fork (UASF).

What is Bitcoin Cash?

Bitcoin blockchain and may split into two competing chain and one of them is bitcoin cash. This is will be the result of a planned UAHF.

The original plan for a UAHF came about from a contingency plan, proposed by Bitcoin mining company, Bitmain, who were opposed to the UASF for SegWit.

At the Future of Bitcoin Conference held in Arnhem, Netherlands from 29 June to 1 July this year, a software engineer named Amaury Sechet announced an alternative Bitcoin client (software) called Bitcoin Adjustable Blocksize Cap (Bitcoin ABC).

It has now been revealed that the token for this client is Bitcoin Cash.

It will differ from Bitcoin in terms of the following:

  • SegWit: Bitcoin Cash will not implement SegWit
  • Blocksize: Immediate increase from 1MB to 8MB
  • Coexistence: Replay and wipe out protections ensures that should the two chains continue to compete, Bitcoin Cash aims to reduce user disruption and allows for the safe existence of two chains.

Effect On Your Bitcoin Holdings?

It does not affect your Bitcoin balance. A chain split and will result in you holding an equal number of coins on both the old and new chains. The value of those coins will be different and vary dramatically as they establish themselves as either the majority or minority chain.

The Community Reaction

Miners

Mining pools including Bitmain, said that they will continue supporting SegWit2x and the original bitcoin chain. ViaBTC and Bitcoin Mining Pool/ViaPool have listed Bitcoin Cash and stated that they support the said Bitcoin chain.

Exchanges

Some major exchanges like Coinbase, Coinfloor and Bitstamp are not stating any support for the new Bitcoin Cash but, two other major bitcoin exchange sites namely Bitfinex and Kraken have said that they will be crediting the forked coins to client accounts and will list the Bitcoin Cash for trading.

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