Bitcoin Cash Divisions Accentuate One Month After Network Upgrade
Divisions between Bitcoin Cash (BCH) and Bitcoin Satoshi Vision (SV) increase after one month of the conflictive network upgrade that Bitcoin Cash experienced. A hash war divided the whole community and increased volatility in the crypto market. Now, these two virtual currencies remain as rivals in the space.
During the first steps of this division, both networks pushed for a hash war that was very harmful to the whole space. Both networks wanted to become dominant, but ultimately only one of them would be able to do it.
Bitcoin Cash’s ABC proposal was backed by Roger Ver and Jihan Wu. Roger Ver is one of the oldest figures in the crypto space and an earlier supporter of Bitcoin. Johan Wu is the CEO of the largest mining company in the world, Bitmain. Bitcoin SV was backed by nChain’s Craig Wright and CoinGeek’s Calvin Ayre.
During a conversation with CoinDesk, Craig Wright said that they are focusing their efforts on developing the Bitcoin SV brand and attract adoption among users and businesses. Nevertheless, as Mr. Ver said, the ABC version of Bitcoin Cash has more hash rate, more exchanges and more support than BSV.
Developers of Bitcoin ABC implemented an upgrade five days after the split. One of the main changes was block finalization. That means that transactions included in a block that has been added to at least 10 blocks are final. This transaction cannot be changed even if a longer version of the chain proposes changes.
Another important thing that they added is the reorg threshold. That means that if there is a chain that is trying to reorg the network, it will have to reorg two times as many blocks as it is trying to reorganize.
This is very positive for businesses, says Tanooj Luthra, an ex-Coinbase engineer and CTO for Elph, a blockchain company. This would allow firms to know that a transaction has been finalized and there is no possibility to modify it.
Hash power does not work as well as in Bitcoin’s network for smaller virtual currencies such as Bitcoin ABC. This is why they have decided to make these changes on the network.
There are several exchanges that have been adding support to Bitcoin ABC and Bitcoin SV. Nevertheless, Bitcoin ABC (now known as Bitcoin Cash), has been widely accepted compared to Bitcoin SV.
Although Bitcoin SV is not traded in most of the most important exchanges, the price in the exchanges in which it is listed has increased during the last days. Indeed, at the moment, Bitcoin SV and Bitcoin Cash have a very similar market capitalization. BCH has $1.45 billion while Bitcoin SV has $1.34 billion.
Steve Shadders, Bitcoin SV developer explained during a conversation with CoinDesk:
“Substantial businesses and organizations have committed to building on the SV blockchain… I’m very confident about the future of Bitcoin SV because the businesses that have pledged to support us are the ones that have real sustainable business models.”
The market will have to decide which of these networks is going to be accepted in the market. Some people are asking whether both of them would be able to survive or just one of them. Despite that, both networks have their own developers and teams behind working in order to improve these projects.