Bitcoin Cash Split Might Be Permanent As Two Competing BCH Blockchains Likely To Stay The Course
Almost 7 days ago, bitcoin cash split into two resulting in two new tokens –bitcoin cash ABC and bitcoin cash Satoshi Vision. As of today, both of them are still going strong, with neither one slowing down or ready to throw in the towel.
It appears therefore, that these two are here to stay, if indications if recent indicators are anything to go by.
For instance, exchanges that suspended the trading and withdrawals of bitcoin cash before the split are now allowing trading and deposit services, thus providing it with even more legitimacy. This has boosted investor and trader confidence, resulting in more traders and investors buying up and exchanging the coins.
Coinbase, a leading cryptocurrency exchange platform actually confirmed this when they stated that they were ready to start trading the legacy Bitcoin Cash as Bitcoin Cash ABC –short for Adjustable Blocksize Cap- and will have the BCH ticker representing it on the platform.
The new chain however, is still being watched with the company stating that they hope to eventually list it and have the withdrawal services ready –of course this will take a while.
Supporters of the bitcoin cash SV chain are optimistic that the network will eventually outlive and outpace the BCH ABC chain.
According to Craig Wright, an ardent fan of the new BCH Satoshi Vision chain, the new chain is going to decimate the old one because the SV technology is better and capable of higher hash power. He believes that the current occurrence is not a split; that the old one will eventually die off and leave the space for the new network.
But, Roger Ver, bitcoin.com’s mining pool CEO, desn’t think that Bitcoin Cash ABC is going anywhere soon. He believes the current hash power can sustain the network for months.
“It’s none of your business where the hash rate came from and it’s not for a single day, it’s for as long as we want. We can go for a single decade if we need to so bring it baby.”
Wright on the other hand, is optimistic that the nChain backed Satoshi Vision will eventually take over and absorb the old one. His claim is that the new chain “has enough hash power to launch a 51 percent attack on the old chain”. Their strategy would be as follows:
“We follow behind, we track them, we keep them on their tails, we basically make them expend money until they burn out,”
However, people like Chris Pacia, ardent bitcoin cash supporter and developer, believe that would be impossible to do, thanks to the preventive measures put in place to “prevent massive reorganizations to validated blocks on the ABC chain”.
While the preventive measures called checkpoints can work on the old chain before the split, experts argue that it might not work as well afterwards. Therefore, the new chain is probably vulnerable to the massive reorganizations of validate blocks.
The reality is that both chains are mining new blocks every day, thus increasing the possibility of the 51 percent attack –even if very remote.
To prevent any future occurrence, Jonathan Toomin, Bitcoin ABC developer and miner, has stated that there are viable and potent options that they can deploy:
“There are also some technical solutions to protect against reorg attacks even without hash rate, like writing code that simply prevents reorgs that are more than six blocks deep. If we do either of those two things then we can get revenue parity with BTC while still keeping [Bitcoin ABC] safe from attack.”
He also goes on to say that while they can actually launch a counterattack against the bitcoin cash satoshi vision chain, they will not do so.
“The ABC side believes that anybody who wants to implement a coin with their own ruleset is welcome to do so. They may create and innovate freely without asking anybody for permission … [Bitcoin ABC] has not used [hash power] to destroy BSV because that would be a violation of our beliefs. We prefer not to launch preemptive attacks,”
Unfortunately, the outcome of the split has not been pleasant for miners and investors. In fact, the split hurt the BCH value, causing its price to plummet to below $180. As expected, all parties aren’t happy about this. Whether the coins survive after this split however, remains to be seen.