The Bitcoin Cash network has gone through a hard fork, which has resulted in the creation of two new blockchains
The Bitcoin Cash network has gone through a hard fork, and the parent blockchain is now being split to make way for two new blockchains. After the hard fork, the Bitcoin Cash network spawned the Bitcoin Cash ABC (BCH ABC) and the Bitcoin Cash Node (BCHN).
According to Coin.Dance, the Bitcoin Cash Node seems to be the dominant software as it makes up 57 of the 63 blocks already mined. Bitcoin Cash ABC is the lower software and so far only makes up six blocks.
Bitcoin Cash came about due to the hard fork of the original Bitcoin network. The Bitcoin Cash network pulled down its last block yesterday. Bitmex Research tweeted: “Bitcoin Cash: The last common block between the BCHN and BCHA networks has now been dismantled. The chains can now part. “
Binance mined the last Bitcoin Cash block they shared while AntPool mined the block that split the network. Since the split, the Bitcoin Cash Node has received most of the network’s hash power as miners mined more blocks on the network than on the Bitcoin Cash ABC network. Before the split, over 80% of the miners threw their weight behind the Bitcoin Cash Node network.
Why the hard fork?
The hard fork of the BCH network was created at the suggestion of a group of developers led by Amaury Sechet. In their proposal, the developers wanted to update the network to include a controversial new “Coinbase rule”. This rule stipulates that 8% of all degraded BCHs are passed on to BCH ABC to support protocol development.
However, another group of Bitcoin Cash developers (Bitcoin Cash Node) rejected the proposal and removed the Coinbase rule from the network’s source code. Hard branching occurs when some nodes on a network implement a change while others do not. The implementation of the new changes resulted in the creation of the old and new software on the Bitcoin Cash network.
Hard fork has effects
The division of the Bitcoin Cash network already affects investors and other network participants. Grayscale Investments’ Bitcoin Cash Trust lost $ 1.6 million after it was announced that Bitcoin Cash had been split into two new cryptocurrencies. Other network participants could be similarly affected, and some investors could shift their money into other cryptocurrencies like Bitcoin and Ethereum until the new Bitcoin Cash networks stabilize.