Bitcoin Cash Splits in Two
The Bitcoin Cash network update, which was scheduled to take place on November 15, has gone live as planned – at Block number 556.766. And just as most had predicted, there was a hard fork, and the network is currently dealing with massive mining from two different camps.
However, just three hours after the split, it seems that one of the main instigators of the fork (Bitcoin SV) is struggling to keep up with the combined hashrate of Bitcoin ABC.
Update on Hard Fork
Reports have confirmed that after the hard fork, the first mined blocks are from the Bitcoin ABC (Adjustable Block Size) protocol and they are in the lead. This is despite the fact that prior to the hard fork, the opposing camp, the Bitcoin SV (Satoshi’s Vision) had had a much higher hashrate.
At the time of writing, 41 blocks have already been mined under the new consensus rules. And Bitcoin ABC is already 12 blocks ahead of Bitcoin SV.
Bitcoin Cash holders can expect massive volatility over the next 24 hours as the fate of the network is decided between Bitcoin ABC and Bitcoin SV. In fact, crypto exchanges across the globe have temporarily halted all BCH withdrawals and trading.
The Bitcoin ABC camp, led by Bitcoin evangelist Roger Ver, has argued that the basic structure of the Bitcoin Cash network is sound and that it doesn’t need to go through any radical changes. The group has proposed basically two changes – getting rid of software bottlenecks and allowing node operators to alter their block size limit.
The Bitcoin SV group, led by the man who said he was Satoshi Nakamoto, Craig Wright, is proposing much more radical changes to the Bitcoin Cash network’s structure. Their recommendation is to completely overwrite the network scripts that have been put in place by Bitcoin ABC and increase the block size from its current 32 MB to its maximum of 128 MB.
Conflict Could Harm BCH
Things have gotten ugly between the two camps, with Wright threatening to begin a 51% Attack on Bitcoin ABC if his Blockchain gains a majority on the nodes and hashrate on the network.
Wright and ABC have been in heated verbal discussions with each other. The co-founder of Bitmain, Jihan Wu, had accused Wright of spying for Blockstream. Wright has threatened the ABC camp, including Roger Ver and Bitmain, with bankruptcy. He also accused them of being involved in child pornography and being involved in Silicon Road machinations.
The continued battled between the two camps could lead to the value of BCH dropping to new lows, and the split, if made permanent, could impact the entire Bitcoin Cash network.