Wu Jihan, co-founder of the largest mining hardware manufacturer, Bitmain, has shared his stories behind New York Agreement and answered important questions that the community was asking to him. But what did he say?
Wu Jihan On Cryptocurrencies And Bitcoin Cash
One of the main questions was whether Bitmain may, in the future, have a higher market capitalization than Bitcoin. At the moment of writing this article Bitcoin as a market value of $112 billion dollars, but if it keeps falling as it happened during this year, Bitmain may surpass the famous virtual currency.
Wu Jihan believes that the market capitalization is an illusory concept that raises and falls according to macroeconomic fluctuations. He said that it is important to be focused on identifying and developing the company’s core competencies rather than the market capitalization of it.
The second question was related to what Cobra, moderator of Bitcoin.org, said about Bitcoin and its Proof of Work algorithm. Cobra said that Bitcoin should change the algorithm to a combination of Proof of Work (PoW) and Proof of Stake (PoS). At the same time, CObra tweeted that ViaBTC CEO Yang Haipo could start a 51% attack on Bitcoin.
Jihan said that Cobra does not know what the white paper says about Bitcoin and how coins should be created. At the same time, he said that if an attack happens, the whole system is not open to arbitrary changes. Moreover, the attacker is only able to change his own transactions and take back money he recently spent.
After it, the next question was related to the 51% attack that Bitcoin Gold suffered some time ago and that affected in $18 million dollars the network. Jihan explains that its company does not ‘own’ so much hashrate because some of the clients operate miners themselves, but they point the hashrate at Bitmain’s mining pools. The clients could switch to other mining pools if they discover a 51% attack.
Another question was related to the NY Agreement and its support for Bitcoin Cash (BCH). He said that NYA represented a compromise between small and big blockers, and that it was abandoned by both parties.
During April, Bitcoin Core and supporters denied the legitimacy of the Hong Kong Consensus, and all of the efforts made to scale bitcoin came to nothing.
In order to break the deadlock, DCG founder Barry Silbert, decided to invite all of the important figures in the industry to come to New York City and search for a solution. Blockstream CEO, Adam Back, said that it was going to attend the meeting, but later he said that he did not come because he was stopped by ‘an important Blcokstream partner.’
The meeting took place on May the 21st 2017, where they focused on the activation of SegWit and whether it should be combined with a hard fork to increase block size.
Barry suggested that it was better to activate segwit first and later start talking about bigger blocks. But Bitpay, Blockchain.info, and other parties, wanted a combination of a hard fork and SegWit. In the end, the agreement was related to the SegWit2X fork.
About it Jihan explained:
“Blocks signalling for the SegWit2x are setting bit4. But something weird happened the next day. Bitcoin core developer James put up with a proposal BIP91 which is simply a soft-fork to activate segwit at 80% threshold rather than 95%. BIP91 also set bit4.”
According to Jihan, in this case, miners could change their positions between BIP91 and Segwit2X. Moreover, other Bitcoin Core activist started to support a UASF proposal, which is very dangerous for the network and that could cause a market-based 51% attack to Bitcoin.
Later some big blockers said that it could be possible to start a new chain with bigger blocks and that it is independent from the original chain. And in this way, Bitcoin Cash was created.