Agreement and disagreement on the upcoming update, with the most giant exchanges announcing their pre-support to the anticipated currency. The verdict on its success goes back to minors.
November 14, 2018 AtoZ Markets
Prior to its occurrence tomorrow, the Bitcoin Cash’s hard fork has got many eyes hanging on it, anticipating and waiting for leaks about what the upcoming bitcoin derivate is like.
However, not many know how it occurs, and what pushes for it, which some call “system upgrade”.
To keep its readers acquainted, Atoz Markets sheds some light on the above mentioned, before the fork takes place tomorrow.
The two crypto godfathers will stand against each other
A hard fork is basically a change to happen in a cryptocurrency’s work system.
The developer/s of the cryptocurrency in question suggest such a thing, due to an improvement in its functionality the developers see achievable through that change.
That means the currency miners used to invested in will be “archived”, which almost always triggered a sparkle of dispute between both parties; developers and miners. Developers usually insist on the update suggested, while some of the miners wish to keep what they had been used to before.
With that being said, a mid-solution is always reachable, which is where a hard fork is due. Those who do not agree on the suggested change, have the option of keeping mining for the same used-to version of the crypto, and developers will still have made their change. Either way, both versions will be available to miners, and this is what is going to happen tomorrow.
Which cryptos will we see?
Tomorrow, Nov. 15, Bitcoin Cash will split into two, generating a new version of it.
The two digital currencies will carry the names of “Bitcoin ABC” (core Bitcoin Cash) and “Bitcoin SV” (Satoshi’s Vision).
The decision to split was reported to have come after a disagreement of the proposed upgrade by Bitcoin Cash BCHUSD, -0.96% developer Amaury Sechet, where the latter added a minor change to the way a transaction is ordered.
In the light of the disagreement on the proposed change, two of the most prominent crypto personalities, Roger Ver and Craig Wright, have decided to “part away”, in spite of that they are both big proponents of Bitcoin Cash, and often to it in their speeches affectionately as the “real” bitcoin BTCUSD, -0.09%.
Ver has supports the new software upgrade, or the current version of Bitcoin Cash, while Wright says the software is supposed to deviate into the direction of the original bitoin, -Satoshi’s Vision (SV)- by increasing the maximum block size from 32MB to 128MB.
The verdict on whether the new-born version of the currency is successful or not, will be between the hands of the miners who decide to give it a try, who will definitely go with what brings them more profit, while the climate tends to go the new way, according to media reports.
Major crypto exchanges, including Coinbase, Binance and Bitfinex, already declared they support the hard fork, meaning owners of Bitcoin Cash will receive 1:1 per new cryptocurrency as soon as the network is upgraded.
“Bitcoin Cash is expected to conduct a hard fork upgrade on 15 November 2018. There are two competing incompatible hard fork upgrade proposals, with the associated clients being Bitcoin ABC and Bitcoin SV. On settlement, the BCHZ18 contract will settle at a price on the Bitcoin ABC side of any split and will NOT include the value of Bitcoin SV,” BitMEX published in a blog post.
some exchanges have taken an unprecedented step and allowed pre-trading of both coins in advance, the move that Bitcoin SV proponent Wright has criticized, noting that it could be breaching the U.S. short selling rules to allow trading in a coin that doesn’t actually exist.
In that context, Poloniex exchange, argues that pre-trading allows the crypto community to test which coin they want to support. “We believe the responsible thing to do in this case is remain neutral and allow the community to decide which chain to support, and we want to empower the community to demonstrate their support through trading activity,” Poloniex said in a press release.
It is worth mentioning that Bitcoin Cash has been volatile ahead of the hard fork, rising as much as 50% in November, before falling 21%.