Bitcoin Cash (BCH) All Set for the Hard Fork Ahead on November 15

11. Nov 2020 Posted by Akolkar B on News

Bitcoin Cash (BCH) the first clone of the Bitcoin (BTC) network is all set to undergo a hard fork on the comping Sunday, November 15. Reportedly, the contentious network upgrade will split the coin in the win into two. The resulting two coins will be Bitcoin ABC and Bitcoin Cash Node (BCHN).

This is not for the first time that the Bitcoin Cash (BCH) is undergoing a hard fork. It’s split back in 2018 created the much controversial Satoshi Version of Bitcoin aka the Bitcoin SV (BSV).

Of the upcoming BCH split, Bitcoin ABC version will introduce a novel mining algorithm which will move 8% of the block rewards from BCH miners to the development fund. The idea of allocating this huge percentage of block rewards for the development fund is not new. Privacy-centric cryptocurrency ZCash which is all undergoing a hard fork on November 15 has a similar concept.

However, the top bosses of the Bitcoin Cash community believe that this huge fund allocation to developers is against the very core decentralized nature of the cryptocurrency. Besides, some community members also see it as form of a “tax” to the network.

Roger Ver, the ardent supporter of Bitcoin Cash from its days of inception is not in favor of the Bitcoin ABC. In fact, he has been much vocal in his support for Bitcoin Cash Node (BCHN) version.

In his tweet against the Bitcoin ABC proposal, Ver said: “Diverting part of the #BitcoinCash block reward to pay a single development team is a Soviet style central planner’s dream come true. Please stop”.

Simple Ledger Protocol that facilitates the issuance of secure tokens on the BCH blockchain network spoke on similar lines. In its newly published blog post, they wrote: “We do not consider a protocol that redirects coinbase rewards, to be Bitcoin Cash (BCH), especially when such a rule was announced unilaterally”.

While the Bitcoin Cash miner community remains divided, a large majority of miner I.e. 82% have expressed support to BCHN version and opposed Bitcoin ABC’s team proposals.

A few exchanges like Huobi and Kraken said that they will offer support to the new versions of BCH. The three major changes that the Bitcoin Cash network upgrade will introduce includes: Difficulty Adjustment Algorithm (DAA), the Coinbase Rule, and Automatic Replay Protection. 

The replacement algorithm will also focus on equalizing profits between steady miners and miners that shift between different blockchains. Bitcoin Cash (BCH) price remains more or less steady throughout 2020. It has appreciated 20% year-to-date.