On Thursday, Bitcoin Cash’s hard fork took place in order to introduce upgrades and divergence in the blockchain, after mining #556,767 blocks. The disagreement between two developer groups namely Bitcoin SV led by nChain and Bitcoin ABC led by Bitcoin.com, drove to the divergence of the Bitcoin community into two separate blockchains.
Hard fork : Brand new divergence of chain which isn’t compatible with the older one
Bitcoin ABC said to offer several changes, one of them would be ” canonical transaction ordering” in which transactions must be put on a block in a specific order. Improvement in a smart contract and Oracle services which would reduce the transaction cost.
Whereas Bitcoin Satoshi’s Vision said to offer an increase of block size from 32 MB to 128 MB, believing that it would increase the network capacity.
Reason of the fork
A fork is a situation where the working of a blockchain split into parts, where one follows same protocol whereas other has a completely different vision, in perspective of a transaction.
Bitcoin Cash’s hard fork happened due to the dispute among bitcoin community. Resultant, One community focused toward the vision of Satoshi who was the founder of Bitcoin, whereas other community wanted to provide a completely different protocol to follow.
In the beginning, Bitcoin.com which supports Bitcoin ABC, mined the first two blocks that were said to be as invalid by SV, whereas Bitcoin SV’s first block mined by mempool.
Bitcoin SV was initially suppressing Bitcoin ABC in hash rate, grabbing about 75% of Bitcoin cash mining power. They were mining the empty blocks and continuously ordering its blockchain in order to attract the economic majority.
Hash rate: amount of computing power required to create a new coin
To Fight back against this move, Bitcoin.com, one of the supporters of Bitcoin ABC put all the hash power to Bitcoin ABC that resultant to ‘hash war’.One who has the most computing power would win. However, both SV and ABC lost around $70,000 a day on expenses as per BitMex research.
Yesterday, Bitcoin ABC had mined 16 blocks more than Bitcoin SV and 52% ahead on proof of work. it had also controlled 62% of network hash rate according to Coin.Dance. Previously at some time, It was 50 blocks ahead, but Bitcoin SV managed to narrow down this difference to 16 blocks. SV was trading at $110 and ABC was at $260. Both the groups had been recurring losses during mining.
Currently, in Bitcoin SV, Coingeeks alone responsible for more than 50% mining of Bitcoin SV blocks. Whereas Bitcoin.com and BTC that backing up Bitcoin ABC, together accounted for more than 60% blocks mined.
In terms of Hash rate, Bitcoin ABC ahead of Bitcoin SV by 41%. Lastly, in Proof of work Bitcoin ABC has been higher, up 45% as compared to Bitcoin SV. On other hands, Bitcoin ABC ahead of Bitcoin SV by 10 blocks.
It is a clear-cut win for Bitcoin ABC.