The sixth largest currency in market capitalization, Bitcoin Cash (BCH) executed its third hard fork as planned. The fork took place last Sunday, November 15, at block number 661,447, of its Blockchain.
In this way, the digital currency, which in turn is a fork of Bitcoin, triggered in 2017, becomes two new projects. They have been renamed Bitcoin Cash Node (BCHN) and Bitcoin Cash ABC (BCH ABC).
It should be remembered that, during 2018, the cryptocurrency carried out its, until now, last division. On that occasion, the fork (or hard fork), originated two new chains. It was about Bitcoin Cash ABC and Bitcoin SV. Meanwhile, this Sunday’s division, it was reported, would have had its origin in the lack of agreements.
Why did BCH run this new hard fork?
Among the reasons that motivated BCH to proceed with a new hard fork, it stands out that there was no way to reconcile the positions. Consequently, the developers of the BCH ABC side, demanded 8% of the rewards of the blocks, prompting the final decision to run the fork.
“Both implementations agreed to create a new mining algorithm. However, the followers of BCH ABC, wanted a portion of the profits of the blocks (approximately 8%), to distribute it among their team of developers. This, undoubtedly, would cause a centralization similar to that of other projects”, Explains the statement.
It is important to note that this division is not two equal parts, as everything indicates that BTCN will be dominant. In this regard, the CoinDesk news portal reports that, at the time of writing, BCH ABC has not yet received hashing power.
“The first block mined, after the division of the Bitcoin Cash Blockchain, was processed in AntPool. Since then, hashing power has been on BCHN’s side as miners have processed multiple blocks on the network.”, Clarifies the aforementioned portal.
In the absence of agreements, division
The origin of the problems for which, finally, BCH executed this new hard fork, was under the responsibility of Amaury Sechet. It is about one of the developers, who proposed a tax on miners. His proposal received the sympathy of a group of colleagues belonging to that project.
The proposal of the “new rules”, Would be done through a network update. Once it goes into effect, miners should pay 8% of their work earnings and they would be distributed among the BCH ABC team headed by Sechet.
On the other hand, the proposal was widely rejected by another group of developers. This opposite party to Seche, was renamed Bitcoin Cash Node, who removed the “tax”From the BCH source code.
Thus, in the absence of agreement, the division of the network was programmed. One group would keep the current software and the other with a new one. The execution of this new hard fork was scheduled for last Sunday, November 15, when, according to plan, it was carried out.
Fall and recovery
The fear of the holders of this cryptocurrency, caused that the days before the hard fork that BCH executed, the sales on the exchanges rose. As a consequence, the price of the coin fell from $ 256 to $ 237. However, it rallied quickly and is above $ 251 at the time of writing.
It should be taken into consideration that if Amaury Sechet’s project, Bitcoin Cash ABC, does not get enough hashing power, it could be considered missing. Although the current hash power of this project is negligible compared to BCHN, development of it is still to be expected in the coming days.
Despite this, everything indicates that BCHN will be the big winner in this fight. The latter can be deduced, after the main exchanges have given their support to this project and have considered it as the legitimate heir of BCH, even with the logo itself.
Data to take into consideration
- At the time of writing, the BCH price tagged on CoinMarketCap is $ 251.
- Likewise, it marks a market capitalization of $ 4.6 billion USD.
- The contradictions between two teams of network developers, caused the division or hard fork of BCH.
- As planned, the BCH fork or hard fork took place on November 15.
- BCH ABC is expected to disappear due to lack of computing power.