Binance Exchange Issues More BCH Details on the Upcoming Bitcoin Cash Hard Fork
Binance recently revealed some details regarding the upcoming BCH hard fork. As part of the support for the upcoming hard fork, the exchange will take a snapshot of all BCH balances on November 15, 2018, 4:40:00 PM (UTC), UNIX time 1542300000.
— Binance (@binance) November 14, 2018
Starting on November 15, 2018, 3:00:00 PM (UTC), the exchange will suspend all BCH trading. Prior to this time, Binance is advising users to leave enough time for the processing of all deposits in full before this time. The exchange said that they would handle the technical requirement for all users that own BCH in Binance accounts.
The Results Of The Hard Fork
Various reports indicate that the BCH might result in two instead of just one chain. These chains are predicted to be the BCHABC and the BCHSV. The exchange is going to stop all trading in BCH including those of BCH/ETH, BCH/BTC, BCH/BNB, and BCH/USDT. This stoppage will start on November 15, 2018, 4:40:00 PM (UTC). The exchange is expecting two possible scenarios:
• First Scenario
In this scenario, the BCH hard fork will not lead to a second chain. In such a case, trading for all the BCH pairs will begin immediately. The time for the resumption of trading is going to be announced in an announcement that the exchange will release.
• Second Scenario
In this case, the hard fork will lead to the creation of a new coin. This will mean that Binance will start to distribute BCHSV and BCHAB to its users. This will occur on a 1:1 ration. The distribution will be based on the snapshot mentioned above the exchange will take.
Later on, the exchange will make an announcement on when trading for BCHSV and BCHABC will start. Withdrawals and deposits shall be locked down until the exchange determines that the forked networks are stable and usable.
Understanding The Hard Fork
On November 15, the BCH hard fork will occur. This is part of a schedule where BCH hard forks twice every year. However, this one is significant since it could result in new tokens.
How It Will Affect Wallet Users
As part of the private key management, it is important to back up private keys. With these private keys, you will have total control over your funds. Users will be able to claim their new tokens if the fork occurs. While it is okay to transact during the hard fork, it might be dangerous to transact after the fork or a few hours before. This will help to avoid a replay attack.
Understanding A Replay Attack
The BCH hard fork lacks protection from replay attacks. This means that a malicious player could copy a transaction on the BCH network and replay it to the new chain. This could cause you to lose your new BCH coins.
Thus, to avoid the issue, please avoid transacting in BCH before the hard fork and a few days after the fork. Once it is declared there is no replay attack risk, you can start trading. No matter what happens, this is proof that trustless immutable finance is growing.