Bitcoin Cash — What the Fork!
If you have been following the cryptocurrency market, you must have noticed -the past week has been quite an unprecedented ride for Bitcoin Cash investors.
As reported on Gecko, the “Hard Fork” event caused by an unpopular 8% “mining tax” led to the price depression of BCH. Firstly, BCH prices fell by 5% from $255 to $240. On Sunday, the BCH price gained a 26% increase from the former dip and was trading at $300.
However, all things aside, if you have found yourself pondering-“what on hell is forking?” You have come to the right place. We have a quick explanation lined-up for you.
First of all, you have to know that Bitcoin Cash (BCH) itself was a by-product of ‘Hard Fork’ from Bitcoin. BCH blockchain network has now further split or “Hard-Forked” into two networks: Bitcoin Cash ABC (BCH ABC) and Bitcoin Cash Node (BCHN).
Another thing that you should probably know by this point is that cryptocurrencies work on an open-source network that runs on consensus. Meaning, there is not a person or an organization who controls how cryptocurrency evolves, but there has to be a common agreement among everyone on changes that might affect the cryptocurrency network. When this does not happen, Forking takes place. So, in a rudimentary sense, Forking is a change in the underlying rules of how blockchain works.
Some Forks like “soft fork” occur when software on which a blockchain is built is upgraded, and every user on the platform has a chance to upgrade over time, apart from a few tweaks most things remain the same. Hard Fork, on the other hand, forces participants to compulsory upgrade to new software. Those who fail to upgrade, cannot participate.
Furthermore, Hard Fork can be planned where everyone agrees to upgrade to the new blockchain and leave the old one behind. Or, contentious where as a result of the disagreement, two blockchains emerge simultaneously. In the case of BCH forking, the former seems to be the case. The community has split into two: BCH ABC and BCHN the former using new software and the latter using old software that does not impose an 8% tax rule.
Although, because BCH ABC has not received any Hash Rate, it’s evidently clearer that BCH will be using BCHN software.
Nonetheless, BCH has recovered its losses and holds a market capitalization of $5.5 Billion making it the seventh most sought-after cryptocurrency. If you have invested in BCH, make sure to keep it safe in a trusted wallet. XcelPay wallet is a kind crypto wallet that you can trust. XcelPay Wallet has recently developed an alliance with Bitcoin Cash. XcelPay wallet keeps your cryptos safe and secure, our app is available for download from Appstore and Playstore.
