A development group employing Craig "Satoshi Nakamoto" / "Faketoshi" Wright will release a competitor for Bitcoin Cash, called Bitcoin SV ("Satoshi Vision"). This is due to disagreement within the Bitcoin Cash community.
On the one hand Bitcoin ABC, the protocol behind the original Bitcoin Cash. On the other side is nChain, a Bitcoin Cash advocating research center that promotes "Bitcoin Cash as the real Bitcoin". Wright, who last year made the news when he claimed to be the real Satoshi Nakamoto, is the Chief Scientist & # 39; from nChain.
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The difference of opinion is this: Bitcoin ABC wants to release an upgrade and a certain part of the Bitcoin Cash community does not agree with this. As a result, the chain could be divided in two. Sounds familiar? It should be.
Bitcoin Cash was created in August 2017 when the Bitcoin ABC protocol was implemented. In fact, it increased the block size limit on the Bitcoin blockchain because the limited size is limited and the transaction becomes slow and expensive. When the chain split, BTC holders suddenly held the same amount of BCH.
Most Bitcoin holders disagreed with the split and continued on the original path. That is why there are two cryptocurrencies where there once was one. In fact, the price of BCH collapsed several months after its creation when BTC holders sold the BCH they held. At the moment Bitcoin Cash has a market capitalization of $ 9 billion, making it the fourth most valuable cryptocurrency, while Bitcoin is worth $ 111.4 billion (figures from coinmarketcap.com).
History repeats itself
BCH underwent an upgrade in May that did not lead to a fork. Why is this different?
The developments relate, in terms of the layman, to being able to use the BCH blockchain to write smart contracts by making it possible to add a second layer to its blockchain. Examples of additional blockchain layers are the Lightning Network (for Bitcoin) and Plasma (for Ethereum). They are touted as ways to make blockchains faster and / or to add more functions to them.
Adding a smart contract writing function to Bitcoin Cash would probably have a positive effect. Bitmain, the Chinese company that dominates the cryptocurrency mines, has already indicated its interest in developing it and has recently invested $ 3 million in a company that is waiting to use it later when it is invented. That company counts Roger Ver, Bitcoin Cash zealot and owner of Bitcoin.com, as an advisor.
The upgrade should take effect in November. However, Wright's nChain does not agree with that.
Jimmy Nguyen, CEO of nChain, said that its mission is "to realize the vision of the founder of Bitcoin, Satoshi Nakamoto," and for this purpose Bitcoin SV "will avoid unnecessary changes to the original Bitcoin protocol".
By this he means extra layers. In response to the upgrade, nChain releases its own version, increasing the block size to 128 megabytes from 32 megabytes. For reference: the limit for bitcoin size is 1 megabyte.
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Buterin vs. Wright IV
Vitalik Buterin, maker of Ethereum, expressed his opinion:
The BCH community must NOT compromise with Craig Wright to "avoid a split" and must embrace it as an opportunity to banish and reject it permanently. Bitcoin Craig (BCC) can be the ticker symbol of the now-defunct cryptocurrency to which it is an appropriate successor.
– Vitalik Non-giver of Ether (@VitalikButerin) August 22, 2018
Buterin does not believe that Wright made Bitcoin and called him a fraud on his face during a conference in April. His reference to & # 39; BCC & # 39; was still a small excavation; a reference BitConnect Coin, the token issued by the infamous Ponzi plan.
– Hope Freiheit 🥃 (@hope_freiheit) April 3, 2018
Personal animosity aside, there is reason to be critical about a new increase in block size. Some have pointed out that this is so unnecessary to be farcical:
My thoughts about the proposed changes to Bitcoin Cash
1. 128 MB blocks – now absolutely unnecessary and dangerous. The median block size of the past month is only 37 KB! There are still no blocks larger than 8 MB, even though the limit is now 32 MB (see https://t.co/h0UTLUGR7y)
– Nikita Zhavoronkov (@nikzh) August 21, 2018
Who will prevail?
According to CCNabout two-thirds of the BCH holders use Bitcoin ABC. Ver can probably be counted on to properly support Bitcoin Cash, given its aforementioned advisory position. CoinGeek, a mining pool that controls about a quarter of all Bitcoin Cash mining, supports Bitcoin SV.
It will be interesting to see how this disagreement progresses.