by Bitcoin Cash Fork: May the blockchain burn in the hash war
“Ex-Ter-Mine”: a Dalek, figure from the best series of the universe. Image by Steve P2008 via Flickr.com. License: Creative Commons
(10) Bitcoin SV provides up to 70% of Bitcoin Cash’s Hashrat. However, this is only a fraction of the entire SHA256 Hashrates, which are spread over Bitcoin and Bitcoin Cash. Only 10 percent of them are on Bitcoin Cash. So it could be that the BTC-Miner pulls a lot of Hashrates to give SV the majority of Hashpower. But at the moment nothing indicates this.
(11) Calvin and Craig have clearly announced that they will do everything to damage the ABC-Chain should claim to be Bitcoin cash without having the majority of the hashpower behind. However, Calvin Ayre rejects a temporary takeover by BTC “Leih-Hashes” by BTC. Should it happen, as previously announced-that there is a split and the exchanges ABC as BCH lists-Coingeek and Nchain will use their hashpower to attack the BCH-Chain until the companies and user Bitcoin SV accept as the real Bitcoin cash. You announce the hash war.
The hash war
(12) What can happen? Some people think the miners have no handling. The split is clean so that the miners cannot wipe out the new chain, and the difficulty algorithm guarantees a reasonably smooth continuation of the blockchain regardless of the hashrate. But I would like to quote Neil Booth here, developer of Electrumx and Craig Wright’s supporter: Most people lack the imagination to make up what could happen.
(13) Nchain, however, gave a foretaste of what is possible last week. Bitcoin.Com has announced that they separate the two chains by using a new op code “DSV” that is only valid on the ABC-Chain. This sounds plausible. But barely a day later, Craig Wright announced that transactions that contain DSV on the SV-Chain are going to the miners. In other words, if you split your coins with DSV, you will lose them on the SV-Chain. Shortly afterwards, the developers of SV showed that this is possible without any problems.
(14) Nchain also organized a short, unannounced stress test at the weekend. This test caused Nchains Pool BMG to produce three 32MB blocks. This is the absolute record for Bitcoin (cash). The blocks went through relatively well, only a few Bitcoin Unlimited Nodes failed. However, it is clear to everyone that Bitcoin Cash will not be able to cope with a continuous load of 32MB blocks. Especially not if they are still built in such a way that they are complex to calculate.
(15) The result of such a permanent burden will be that numerous services fail. About Electrumx servers (behind Electron) and blockexplorer. The orphaned blocks will explode, which makes the mining less profitable. This will make it easier for the attacker to start 51 percent attacks and other things.
(16) The ABC supporters hope for Bitmain. However, the company is forced to act rationally through the IPO, and already overtested in Bitcoin Cash. It is not to be expected that Bitmain is willing to invest a lot of capital in a hash war. Nchain and Coingeek, on the other hand, have long been proving that they are ready to burn money to do what they want – for example by exclusive Bitcoin Cash mines instead of, like all other miners, the more profitable coin. In addition, it should be possible that Bitmain’s competitors are only waiting to harm Bitmain by participating in the Hashwar.
My conclusion
(17) I know that this is a controversial situation. But for me it looks like ABC was losing the hash war. The coin based on the ABC-Chain runs the risk of becoming unstable, and I don’t think that it will take more than a month or two for the stock exchanges to listen to list if it comes as bad as it is announced. The SV coin, on the other hand, will have better chances, be stable.
(18) I also assume that Bitcoin.com and Bitmain understand this when you look at the situation soberly. So I think there will be no fork. Roger Ver or Jihan Wu will presumably announce tomorrow or the day after tomorrow that the fork fails.
(19) Many supporters of ABC find all of this terrible. The home forum of Bitcoin Cash, the Reddit-Sub R/BTC, has increased into a hate orgies against Craig Wright over the past week. The Hashwar is understood as a takeover of a terrible person.
(20) I don’t find it bad myself. Bitcoin Cash will be the only coin in which the developer consensus is not decided, but by hashpower consensus. You can master any coin by buying the developers and convincing the stock exchanges to bind the ticker symbol to an implementation. If you want to master Bitcoin Cash, you have to buy mining hardware. That makes me relatively optimistic about the future of Bitcoin Cash.
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