At work bitcoin, the new crypto currency will not directly affect: except on his course.
On August 1, a group of activists launched a new crypto currency called Bitcoin Cash (abbreviated BCH or BCC). It was created by bitcoin hardcore due to the disagreements between the bitcoin community on how the Bitcoin protocol should develop. Unlike other new crypto currencies, Bitcoin Cash has an existing block system: it is taken from the old Bitcoin, so the owners of bitcoins will get a similar number of BCHs actually from the air.
The fork of the most popular crypto currency is a great historical event for the market, and it is not easy to understand it.
What is hardcoque bitcoin
HardFork is when new rules of work appear for crypto currency, but for their introduction it is necessary to divide into two branches of the block (fork – fork, or in this case branching). In the case of softoff, no separation is required: new rules are introduced in addition to those already in existence, and the system only approves those softfoots that most users support (the activation mechanism is complicated and step-by-step).
Forks are very similar to application updates. For example, regular updates of the Facebook application for iOS add new functions to the social network. On older versions of these functions there, while users of both, and can continue to communicate with a friend – this is how the softphone works. If someone from Facebook users created a copy of the social network without “smart tape” and advertising, then it would hardly have liked Mark Zuckerberg and his company, and the two social networks would have to exist in parallel – in this case, the new social network would be the hardcore of the old one. All the new content (published after the hard-core) in these social networks would be different, and the entire old one is the same.
The activation of Bitcoin Cash’s hard-earned happened on August 1 at approximately 15:27 Moscow time. At this point, the Bitcoin and Bitcoin Cash blockhouses were identical, the last block had a serial number of 478558. Bitcoin Cash subsequently had its own blocks, which will not be in the Bitcoin blockbuster, and vice versa: On August 2, at 14:00, the last Bitcoin Cash unit already had an order number 478570, that is for a day in the blockade appeared 11 new blocks.
What is the difference between Bitcoin Cash and ordinary bitcoin
According to Reuters , in support of Bitcoin Cash is a small but powerful group of Chinese miners – people and companies owning mining farms and making money on transaction processing. They do not agree with the innovations that will appear in Bitcoin as part of the BIP 91 protocol update, which is due to come into effect later in August 2017 via softphone.
The main differences Bitcoin Cash from Bitcoin are only three . The first is an enlarged block size in the block: now the bitcoin has a block limit of only 1 MB. The block records data about the latest transactions in the block and information about the previous block. According to The Telegraph , a new block in the bitcoin blockade appears every 10 minutes, which provides about seven transactions per second (Visa has 2 thousand per second).
The main innovation in BIP 91 is a technology called SegWit2x (from Segregated Witness, which was proposed back in 2015), the idea of which is not to store transaction signatures in the blocks themselves, but to write them into a hash function. According to different estimates, the signatures contain from 50% to 75% of the block volume, so if they are allocated to a hash function, then the Bitcoin network efficiency will grow two to four times. In addition, within the softphone after the introduction of the new protocol, the limit on the block volume will be 2 MB – therefore, according to optimistic estimates, the network efficiency will grow four to eight times.
In Bitcoin Cash, the block will have a size of 8 MB. It is believed that an increase in the size of the block will increase the volume of ongoing transactions: the alleged bitcoin market has rested in the current limit, which slows the processing of remittances. But the transaction signatures in Bitcoin Cash will continue to be written to the block itself, so the performance increase will be about the same as the new bitcoin protocol.
Two other differences are more technical in nature. Bitcoin Cash has protection against repetition and deletion of transactions, as well as a special type of transactions in which it is possible to separately sign payment amounts to increase the security of transfers.
Who is behind Bitcoin Cash
The chief developer of Bitcoin Cash’s first Bitcoin ABC protocol, Amaury Sechét, is a former Facebook programmer from San Francisco, who has devoted himself entirely to Bitcoin some time ago. On July 1, he presented the Bitcoin ABC project at the Future of Bitcoin conference in the Dutch Arnhem.
In an interview with Bitcoin Magazine Szochet said that after participating in several profile conferences he began to work on his own project for scaling the Bitcoin system. The participant of the sabreddit r / btcfork under the name of Freetrader became interested in the project of Sececa and joined his development.
According to the author Bitcoin ABC, the idea to carry out the bitcoin bitrate was offered to him by the Chinese company Bitmain – one of the world’s largest manufacturers of equipment for mining. His research was carried out with funds from a Bitcoin Development Grant grant sponsored by Bitcoin.com and Bitmain.
According to Szochet, he did not come up with the name Bitcoin Cash, but he likes it and he does not think that such a name can mislead the mass users of bitcoin.
People will complain no matter what. This project [Bitcoin Cash] wants to continue the Bitcoin business and grow it to the point where it becomes peer-to-peer electronic cash used around the world. The prefix “Cash” looks like a good way to excel and simultaneously bring the vision.
The development of SegWit2x is the Bitcoin Core team. It is believed that the differences between the Bitcoin Cash projects and the usual Bitcoin with SegWit2x are more ideological than technical ones: those who support Bitcoin Cash insist on maintaining the decentralization of the network and argue that the introduction of interlayers will not solve the scaling problem. Bitcoin Core claims that bitcoin needs the ability to build on it payment services, because as a result, it will reduce the commission for transactions.
Who supports Bitcoin Cash
Since Bitcoin Cash is created on the basis of the old bitcoin bitcoin, the idea of a new crypto currency is that all bitcoin owners will be able to get the quantity of BCH equivalent to the fact that they were stored in bitcoin at the system startup. To do this, you need to have physical encryption keys to the wallet, and if they do not, then they should be given a bitcoin-purse operator (or an account on the exchange). For example, Kraken , Trezor , Ledger and other projects announced Bitcoin Cash support (the list illustrates how the bitcoin community split in half).
Some bitcoins-purses refused to support Bitcoin Cash – for example, BitMEX and Bitstamp. BitMEX Business Development Director stated that his company “does not want to support the possibility of a potential separation of the blockade of bitcoin and in fact the creation of money from nothing.”
In one of the most popular bitcoin-wallets services Coinbase stated that BCH support will require too serious change of the bitcoin-purse system, but not the fact that in the future the new crypto currency will show significance for the market. At the same time, the Coinbase administration promised that it would not leave the BCH associated with its users’ wallets.
As a result , about 400,000 bitcoins were removed from the Coinbase wallets beforehand (at the exchange rate of about 1 billion dollars on August 1), and because of the huge volume of transactions, the service even encountered malfunctions. Some experts say that Coinbase (as well as other such services) may face future lawsuits from bitcoin-purse owners if they can not get to their BCH.
At the same time, most services support bitcoin softcops with SegWit2x – in fact, without the support of the majority, it would not be able to appear within the existing system.
Was Bitcoin Cash in high demand?
Three days before the hard currency, Bitcoin Cash futures traded at a price of $ 380, two days later the price fell to $ 275. However, a day after the activation of the new crypto currency, its real value has grown to $ 500 and continues to grow rapidly .
At noon on August 2 (in Moscow time) Bitcoin Cash was the third by market capitalization of the world’s crypto currency after bitcoin and etherium. The volume of the bitcoin market is about 44 billion dollars, the etherium is 20 billion, and BCH – 7.7 billion dollars.
The growth of BCH can be associated with expectations around the new crypto currency and overheated interest in it due to materials in the media and on profile sites. However, it can not yet be said that her appearance strongly influenced the course of bitcoin : on August 1, he nearly broke the quarterly record, although then there was a weak tendency to reduce it.
However, the results of the first trading do not give an exhaustive understanding of the demand for a new crypto currency. As in the case of other altcoyins, the success of Bitcoin Cash will be demonstrated by the long-term practice of its use.