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Bitcoin Cash (BCH): 5 Possible Scenarios after Contentious Hard Fork

Published 11/15/2018, 06:33 AM
Updated 11/15/2018, 07:40 AM
© Reuters.   Bitcoin Cash (BCH): 5 Possible Scenarios after Contentious Hard Fork

Bitcoin Cash (BCH) is facing a watershed moment given that the first Bitcoin (BTC) hard fork has left the community and miners split over the future direction of the network. This time, however, the attempt to steer the course of the coin would take the form of a 51% attack, testing the understanding for network consensus.

A 51% attack is often viewed as disastrous for the credibility of a coin, allowing miners to alter the distributed ledger, double-spend, or perform other actions on the network. The way the Bitcoin Cash SV version would be implemented is precisely this: sustained mining of an alternative chain. However, the version of Graig Wright will have only 182 nodes to run against 1,103 ABC nodes.

Taking Bitcoin’s history as an example, the nodes signaling their allegiance is a form of consensus. At least in the case of the SegWit2X wars for influence, it was not hashrate but nodes that defined the dominance of one version over the other.

But the attempt to take over Bitcoin Cash is hostile. Here are the possibilities following the switch of 72% of the Bitcoin Cash hashrate to the SV version.

Bitcoin Cash dies: BCH becomes a coin with two separate ledgers, under a constant 51% attack. No one is certain which version would survive. With no replay protection, siding with one version could mean a total loss. Chaos on exchanges ensues. No one can tell how long the hash wars may continue, but, in effect, the supporting sides would mine blocks and receive rewards of an asset that may not exist.

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This article appeared first on Cryptovest

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Why that picture? No gold backing, no coins.
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