Bitcoin Cash Protocol War Continues; Dragging Coin Price Further Down

Nov 16, 2018 at 22:43

Bitcoin Cash (BCH) has completed its latest hard fork but the war of competing protocols seems to be far from over as neither parties are willing to give way.

The hard fork gave birth to two distinct networks with two separate cryptocurrencies. One iteration of BCH’s protocol is now called Bitcoin Satoshi’s Vision (Bitcoin SV) that directly opposes the upgrades introduced by the project’s long-dominant Bitcoin ABC implementation.

Bitcoin ABC, led by Amaury Séchet, has a policy of hard forking about once every six months to upgrade the protocol. The main change he introduced in the recent fork is the canonical transaction ordering (CTOR) that forces transactions to be done in a specific order that is seen to produce technical benefits especially in scaling improvements.

Séchet’s group also implemented a new piece of script called OP_CHECKDATASIG (DSV) to extend BCH’s features by enabling oracles for smart contracts as well as a minimum size for transactions.

Meanwhile, the other protocol called Bitcoin SV is led by blockchain research firm nChain and its chief scientist Craig Steven Wright that aims to restore the coin in its original 0.1.0 version that will have few or no further protocol upgrades at all.

Notably, Bitcoin SV rejects CTOR citing that its potential benefits is insufficiently proven with high risks. This iteration also increases the default block size limit to 128 megabytes compared to Bitcoin ABC’s 32 megabytes.

Likewise, Bitcoin SV’s protocol reinstalls old OP codes such as OP_MUL, OP_LSHIFT, OP_RSHIFT and OP_INVERT with size limit on scripts also removed.

Wright also aims to increase the block size of BCH further to the point of removing it entirely and warns that it will make Bitcoin ABC and its miners illegal.

At present, there is still no clarity on BCH’s definite future as the two opposing factions’ bad blood continues to heat up.

BKCM founder and chief executive officer Brian Kelly said the market is very much affected with the BCH drama.

“People are concerned that both Bitcoin and Bitcoin Cash markets, their networks might slow down, they might not work as well, the software upgrade may not go through or if it does go through, we will end up with some chaos. People started selling, that triggered stops, everybody got concerned,” he stated.

As of this writing, BCH is down by 7.4 percent to $405.1312 with a market cap of $7.07 billion.