What do You Need to Know About Bitmain ABC Fork?
One of the most interesting things about Satoshi’s white paper on Bitcoin was that it deleted third party intervention to handle money from individuals. It was simple and secure. Indeed, individuals were finally able to manage their funds with freedom without intervention.
The founder of Bitmain and Bitcoin ABC, Jihan Wu is trying to add its species to the original protocols changing and adding to those original protocols. Moreover, they are trying to limit or slow any attempt of a massive on-chain scaling limiting the block size to 32 MB.
Bitcoin’s landscape is very competitive. Miners are competing at all times and trying to have a better piece of the market. If they do not invest, they lag behind and do not remain competitive.
By limiting block sizes, developers control the means of production and give subsidies to inefficient miners that do not want to invest to compete in the market.
Greg Maxwell, for example, has already warned about a Big Block Attack in which large miners wanted to take away less invested miners. That misrepresents the importance of scaling the network.
In order to improve Bitcoin’s security in the long term, it is very important to raise the block size. Miners would be forced to invest and keep being competitive. Those who do not want or cannot keep, would be outside the market. This is necessary to improve and ensure the viability and security of Bitcoin.
Bitcoin needs to reach a network operation level similar to the one of Visa or MasterCard.
Both Bitmain and ABC are trying to introduce some changes that have not considered the impact that they will have on the ecosystem.
Using Canonical Transaction Ordering Rule (CTOR), transactions would be sorted based on their identifiers. That would change the underlying protocols, which is a problem. The second problem is that the network scaling issue is not solved in this way.
This only allows chainless apps to be more capable. Something good for developers. But there are other problems for users because they need to trust a third party or software oracle.
Additionally, CTOR does not support 0-confirmation transactions. Due to the fact that Bitcoin aimed and was designed to be used as cash, BCH shows that it tried to eliminate the possibility of 0 confirmation transactions. That erodes the ecosystem
Jihan Wu is a strong supporter of CTOR and Wormhole, a second layer technology allowing for smart contracts.
On one hand, it seems that this allows the ecosystem to grow. On the other hand, it really drives innovation backward. In the end, Bitcoin Cash would be more similar to Ethereum, a developer currency, rather than electronic cash.
It seems that Bitmain and Mr. Wu are trying to fund ABC due to the fact that the mining company is a very important proponent of the CTOR and Wormhole.
Wu was an important figure that allowed Segregated Witness (SegWit) to happen and to be implemented on the Bitcoin blockchain. This has severely affected the whole network limiting it and allowing developers to start working on the Lightning Network. Until now, the Lighting Network is not implemented and is not working as expected.
BCH should work in a better way, and shouldn’t be manipulated frivolously. Developing the system is the only way to ensure that it will survive in the long term.
If Bitcoin wants to grow, it will need adoption. Adoption is related to merchants, developers and users using the network. However, Bitcoin ABC and Wu are pushing individuals to invest in something that would not be helpful for the whole network.