Bitcoin Cash ‘hard fork’ What you need to know about it

Bitcoin cash hard fork. BitcoinCash Hard fork (BCH Hard fork)

The proposed BITCOIN CASH split pits two outspoken crypto evangelists against each other

On Thursday, Bitcoin Cash, perhaps, the most famous hard fork of bitcoin and the fourth-largest cryptocurrency, will split in two, creating a second cryptocurrency. he two digital currencies will go by the names Bitcoin ABC (core Bitcoin Cash) and Bitcoin SV (Satoshi’s Vision).

A hard fork (hard-fork) is when developers and miners no longer agree on a proposed change to the software, despite operating on the same blockchain. Once the fork takes place, one group of so-called nodes – computers that are connected to the network and are part of the transaction confirmation process; will upgrade to the new software and the other will operate on the old rules, creating two separate blockchains and digital currencies.

The decision to split came after a disagreement of the proposed upgrade by Bitcoin Cash BCH USD, -1.74%  developer Amaury Sechet that added a minor change to transaction ordering. The disagreement escalated and has pitted two of the biggest crypto personalities against each other: Roger Ver and Craig Wright. While both are big proponents of Bitcoin Cash, often referring to the currency affectionately as the “real” bitcoin BTC USD, -0.16% the pending fork has split the two crypto-anarchists.

Ver has put his weight behind the new software upgrade, or the current Bitcoin Cash. But Wright; the Australian computing genius who has on a number of occasions claimed to be Satoshi Nakamoto, the pseudonym given to the creator of bitcoin — argues the software should deviate toward the original bitcoin, hence Satoshi’s Vision (SV), by raising the maximum block size to 128MB from 32MB.

Determining the success of each coin will be at the hands of miners who commit their hash power; the computing power to mine a cryptocurrency. In all likelihood, the miners will commit their power to whichever coin is more profitable to mine. To date, consensus among the industry is that Bitcoin ABC should prevail in the war of the miners. However, Coin Dance, a data monitoring website has said it projects Bitcoin SV to receive up to 60% of the computing power.

For crypto exchanges, most of the major crypto exchanges, including Coinbase, Binance and Bitfinex, have stated that they support the hard fork, meaning owners of Bitcoin Cash will receive 1:1 per new cryptocurrency once the network is upgraded. Thus far, only one major exchange has hitched its wagon to either coin.

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