Weekly Blockchain Industry Report-31st Issue: BCH hard fork — hash power battle is on
(November 10th — November 16th, 2018)
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Market Overview
This week, the daily average global cryptocurrency’s market capitalization was $206.087billion, representing a 2.90% decrease from last week. Among them, the Top 5 cryptocurrencies’ market cap decreased by 5.37%;The daily average transaction volume was $14.857 billion, representing a 10.42% increase. Meanwhile, the Top 5 cryptocurrencies’ transaction volume increased by 7.43%. All of them decreased in price this week, among them, BCH decreased the most, reaching 28.27%.
Among the top 10 increases of global cryptocurrency projects, the biggest winner of them is SRN, which is in the field of Dev Tools. Its maximum price increase was 77.15%.
Analysis of Top 200 Market Cap Projects
The market capitalization of the top 200 projects this week decreased by 13.62% compared with last week. Based on our classification of 4 categories: cryptocurrency and payment, basic chain and protocol, vertical chain and protocol, and vertical industrial application, all of these sectors experienced market cap decrease. Among them, vertical chain and protocol sector experienced highest price decrease, which decreased by 22.5%.
Through further classification of the vertical chain and protocol and the vertical industrial application sectors, it was found that nearly most industries show a upward trend, and Wallet sector experienced most market cap decrease, as high as 33.22% and follows the Data Service sector, which decreased 33.05%
Analysis of Newly Listed Projects
According to latest announcements from more than 30 exchanges including OKEx, Binance, Huobi, Bitfinex, Bithumb, ZB.com, Upbit, HitBTC, Bittrex, Poloniex, there are 4 newly listed cryptocurrencies and 8 newly listed trading pairs. Among the new listed projects, Poloniex distributes two pairs , which are two forked coins of BCH, BHCSV and BCHABC.
Analysis of Closed Public Offering Projects
There have been 50 closed public-offering projects this past week, with the soft cap totaling nearly 100 million USD. Among these projects, finance sector has the largest total soft cap, exceeding 21 million USD.
Important News on Global Governmental Policies this Past Week
US: After the SEC announced that it had imposed penalties on the founder of EtherDelta for securities transactions, daily trading volume on the Ethereum network of decentralized exchanges fell sharply.
China: The National Internet Emergency Center signed an official contract with Changsha Economic Development Zone to establish the nation’s first blockchain security testing center. National security agencies attach importance to blockchain industry security, and will play a role in safeguarding and promoting industry development.
Russia: Muradov, Deputy Prime Minister of the Crimea Republic, said at the recent Yalta International Economic Forum that blockchain businesses and cryptocurrency funds will soon be included in the Crimean Special Economic Zone.
Bahamas: The Central Bank of the Bahamas (CBOB) has published a document outlining a regulatory framework for crypto assets, as the CBOB prepares to introduce them into the financial services industry. CBOB said that the regulatory framework must be developed to enhance industry competitiveness.
Vietnam: The Ministry of Justice of Hanoi has compiled a report on cryptocurrency regulation and practices. It recommends that the government revise current legislation and align its crypto regulations with those of other countries.
Japan: The Financial Services Agency (FSA) held a meeting to discuss regulations on crypto wallet services and providers. The FSA explained that current law does not apply to wallet service providers because they do not buy or sell cryptocurrencies. Since they manage payments, the FSA believes that financial regulation is necessary.
Keeping Up with the Blockchain Giants
November 10th
Eurocarex is the first company in Spain to introduce blockchain technology to its production process. According to Eurocarex, blockchain processes documents such as certificates of goods origin and bills of lading using smart contracts will reduce the number of operations involved in transactions, saving time and money.
November 11th
Cargill, one of the largest fresh turkey suppliers in the US, has incorporated about 70 turkey farms in Missouri and Texas into their food traceability programs. According to previous news, the world’s four major agro producers, including Cargill, are now using digital technologies such as blockchain to digitize international food trade.
November 12th
The blockchain trade financing platform jointly developed by China CITIC Bank, Bank of China and Minsheng Bank is the first blockchain technology application in the domestic trade finance banking field. It has established a non-intermediated P2P interbank cooperation model.
November 13th
The oil companies BP, Shell and Equinor have teamed up with large banks and trading companies to launch the blockchain-driven platform Vakt for energy commodity trading.
November 14th
Cool Charm Bracelets (CCB) announced acceptance of BCD payment. CCB is a subsidiary of Marks Jewelers, the third largest jewelry retail chain in the United States. The company said that BCD payment skips VISA credit card information registration and other steps, making multinational e-commerce more secure and convenient.
November 15th
JD Finance and Public Mutual Insurance Corporation together recently launched the “JD Mutual Insurance.” Like Alipay’s “mutual insurance,” “JD Mutual Insurance” also makes use of blockchain and other technologies to ensure information transparency and reliability.
November 16th
British energy giant Centrica is working with Verv, a smart grid platform, to test the use of blockchain P2P transactions to reduce customer energy transaction costs, and to explore further deployment. Centrica Group is the UK’s largest natural gas supplier.
Hot Topic this Week: BCH computing power battle is on
At 01:52 on November 16, 2018, after the last block of BCH Unlimited (the old version) was mined at a height of 556,766, the widely watched BCH fork competition officially kicked off. BCH ABC, led by Wu Jihan, and BCH SV led by CSW (Craig Steven Wright, AKA Faketoshi) will part ways in further mining. Miners and mining pools will have to choose their sides and update to the corresponding client version.
SV Group previously occupied most BCH computing power, and once exceeding 70%. In the last week’s hot topic, we mentioned that the mining pools supporting SV mainly include Coingeek, SVPool, BMG Pool, Mempool. Among them, Coingeek had the largest BCH computing power for most of the past year. Mining pools that support ABC mainly include AntPool, ViaBTC, Bitcoin.com, and BTC.com. The figure below shows the BCH network computing power distribution on November 15th.
However, something unexpected happened. Ten minutes after the start of the fork, Bitcoin.com mined the first block of BCH ABC, and then the second one only 4 minutes later. While for SV side, they still did not mine any blocks. CSW boasted about his computing power, but he spoke too soon.
The computing power of BCH ABC grew rapidly, and various reinforcements joint Wu Jihan’s group — most notably the Bitcoin.com mine, owned by Roger Ver. Ver said publicly that he supported ABC, and he would switch BTC computing power to BCH mining for 24 hours following the fork. Its computing power managed to exceeded 4E for a time, more than total BCH network computing power before the fork.
ABC was ahead by 50 blocks as of press time, but this does not mean that the SV Group has lost. As CSW said, the BCH battle seems to be a competition of computing power, but actually, it’s about money. Since switching computing power to BCH mining requires to pay miners the income that they could have got in BTC mining, the overwhelming edge of ABC computing power may not be sustainable. In addition, Ver only promised to help BCH for one day. Whether or not ABC can keep the lead with the reduction in BCH computing power from Bitcoin.com remains a question.
No one knows where these nonsense are heading. It should be pointed out that since neither party has added replay protection (at least for now), we cannot yet jump to the conclusion that BCH has been hard forked into ABC and SV. Regarding subsequent development, Jiang Zhuoer, founder of BTC.TOP and LTC.TOP, made the following deduction. OK Blockchain Capital will also continue to follow up.
Appendix: Upcoming Crowdfunding Projects 11.17–11.23
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*Credits to Quqi Deng for his superb research!
