- On August 1, 2017 12:20PM UTC, the Bitcoin network is scheduled to experience a hard fork that will result in a permanent split of the Bitcoin network.
- This User Activated Hard Fork will create a new version of Bitcoin called “Bitcoin Cash”.
- All current Bitcoin holders will automatically own Bitcoin Cash.
In my last article published on June 26, I detailed out the upcoming August 1st event and urged all long term investors to safe guard their coins by moving them to personal wallets. It is almost clear that on August 1st 2017, a group of developers, miners, investors, and bitcoin users will upgrade the Bitcoin protocol as specified by the User Activated Hard Fork (UAHF). Miners implementing the User Activated Hard Fork will safely split away, creating a new version of Bitcoin called “Bitcoin Cash”.
Long term investors of Bitcoin should not be worried as all current Bitcoin holders will automatically own Bitcoin Cash. The existing ledger at the time of the split is preserved, thus users retain any balances they had before the split.
The team behind “Bitcoin Cash” originally backed the Segwit2x proposal. But they appear to be losing confidence in an eventual block size increase. Because of this reason they are now taking matters into their own hands by making their own version of bitcoin called Bitcoin Cash or BCC.
Bitcoin Cash In Details
Let us discuss the new features as mentioned by the Bitcoin Cash Team:
- Block Size Limit Increase – Bitcoin Cash provides much needed relief to users with an immediate increase of the block size limit to 8MB.
- Replay and Wipeout Protection – Should two chains persist, Bitcoin Cash minimizes user disruption, and permits safe and peaceful coexistence of the two chains, with well thought out replay and wipeout protection.
- New SigHash Type – As part of the replay protection technology, Bitcoin Cash introduces a new way of signing transactions. This also brings additional benefits such as input value signing for improved hardware wallet security, and elimination of the quadratic hashing problem.
- It removes SegWit, a code change that might activate on the bitcoin blockchain by the end of August.
- BCC’s transaction history will be same as bitcoin’s – at least up until the point of the split.
Original Author: Melwin Philip