Why Does Bitcoin Fork BCH (Forking Currency BTH)?

08/17/2023 11:17 • Blockchain Buzz • 120 views

Why does Bitcoin fork BCH? Edit: This article is from BlockBeats (ID: BlockBeats), author: 0x29, authorized by Odaily Star Daily.

Why does Bitcoin fork BCH? Today, let’s talk about why Bitcoin forks BCH. What is Bitcoin’s forked Bitcoin Cash is one of the earliest cryptocurrencies. It is an open-source, distributed system developed and maintained by the Bitcoin Core team. It was mined on February 28, 2009 but experienced failures until early 2012.

This split occurred for two reasons:

First, Satoshi Nakamoto disagreed with the proposed improvement version of the Bitcoin protocol because he believed that the Bitcoin code only contained some content;

Second, community members disagreed with a proposal made by Bitcoin Core developers, which aimed to make it easier for Bitcoin supporters to vote on the proposal and gain more votes;

Third, both chains had serious vulnerabilities and issues that could affect the development of other blockchain networks, resulting in divergences. Therefore, the purpose of the fork was to solve this problem. But what exactly is Bitcoin? It’s actually quite simple, if you want to change the design ideas and technical architecture of Bitcoin, Bitcoin becomes something completely different.

In order to provide everyone with the same thing, there needs to be a unified technical implementation framework, so that they can interact or apply in the same way. This structure can be understood as a “new consensus algorithm”, which gives the entire network different types of capabilities and allows them to cooperate with each other. Once consensus is reached, this infrastructure will become very complex and difficult to scale, causing many competitors to be unable to complete transactions smoothly and create a more secure and reliable network, resulting in a completely new network structure. So there is a big difference between branches, for example, exchanges will choose to store Bitcoin in cold wallets instead of custodian assets or storing digital assets, making them a separate market. This is why Bitcoin forks. Why does Bitcoin fork BTC? In a sense, the split is actually another major innovation for Bitcoin. The core principle behind the split is that Bitcoin does not have decentralization characteristics, nor any internal mechanisms to guarantee fairness, justice, and openness; on the other hand, due to Bitcoin’s anonymous properties, it cannot be used as a medium of exchange or a store of value. Although the post-fork Bitcoin network will not operate as stably as the current Bitcoin, it will also bring certain regulatory pressures, including mining costs.

Forked Currency BTH of Bitcoin

Edit: This article is from BlockBeats (ID: BlockBeats), authorized by Odaily Star Daily.

Shortly after the birth of Bitcoin, BTH coins embraced a new direction – forked currencies. According to Bitcoin Magazine, a recent news report shows that btc.news is planning to launch two cryptocurrencies called “BithCash” and “Bitcoincash” (BCH). These digital codes are respectively “BTC”, “ETH”, and “BCHSV”. The first one is Bitcoin-ABC, which is a new Bitcoin Cash blockchain protocol. The other is used as a payment method by other cryptocurrency projects such as Bitcoin Payment Network, Ethereum Virtual Machine (EVM), EOSIO software, and more. In addition, there is also a new algorithm called “BitcoinCash”, which is similar to the “mining incentive mechanism” or mining reward system in the “hard cap plan” of Bitcoin. “After the release of Bitcoin’s whitepaper, people started paying attention to this concept,” an anonymous developer tweeted, “We found that the Bitcoin community actively participated in this event.” The test network deployment is currently underway.

According to the official information, BTH is ready to launch the main network and will be listed on exchanges later this year, but the specific time is not yet determined. The token name is not disclosed to the public. (Official Website Link)

It is reported that in addition to BitDeer, there is another decentralized blockchain platform called BitcoinCore.

Although there have been previous reports that BitcoinCore will use the proof of stake consensus mechanism to achieve the security and privacy of data storage on the Bitcoin blockchain, the Bitcoin SV team has stated that this solution will be temporarily shelved due to support for Bitcoin transaction verification. This statement has also received support from some industry insiders.

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Why Does Bitcoin Fork BCH (Forking Currency BTH)?

Forked Currency BTH of Bitcoin

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