Bitcoin Cash risks a fork: Bitcoin.com avoids the worst
Bitcoin Cash risks a fork: Bitcoin.com avoids the worst
Blockchain

Bitcoin Cash risks a fork: Bitcoin.com avoids the worst

By Lorenzo Dalvit - 28 Jan 2020

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The Bitcoin.com team withdraws support for the proposal launched by miner Jiang Zhuoer. The current discussion risked generating a fork of the Bitcoin Cash chain

The Bitcoin.com company, of which Roger Ver is the Executive Chairman, was initially among the signatories of the document, but after a few days, things have changed radically. Their approval is temporarily suspended.

The channel with which the news was published is Read.Cash, a platform where articles with images and text can be inserted and BCH can be received as an upvote system – a form of “like” in money that can increase text indexing.

The initial proposal was to finance BCH’s developments through a change to the code that would see a 12.5% deduction from the miner reward in favour of a Hong Kong-based company.

That company was supposed to set the road map for Bitcoin Cash developments by funding the developers.

Jiang Zhuoer was pragmatic and incisive, sidelining the debate, looking for quick and immediate solutions by drawing a parallel with the choices of the Chinese government, capable of exponentially growing their economy.

But Bitcoin Cash is, by its very nature, decentralized and some actors have not accepted Jiang’s approach.

Yesterday, also via Read.cash, an anonymous group of miners from North America and Europe threatened to oppose it, putting the integrity of the chain at risk

Willing to generate a litigation fork, the group, hidden behind a pseudonym, supports the thinking of Peter Rizun, famous big blocker at the head of Bitcoin Unlimited Client.

Peter R. has strongly emphasized his opposition. His Client will follow Satoshi Nakamoto’s white paper which established:

“By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator of the block.”

If this aspect is not respected and part of this reward ends up with other entities, there could be problems with the US SEC. 

Using the Howey Test, BCH could be considered a security after the changes.

Rizun also insists on how politicized the choice of priorities within this new entity in Hong Kong would become, and how dangerous this dynamic could become for code developments.

There’s a lot of concern that the decentralization of Bitcoin Cash will not be enough to defend the protocol from such a dangerous change.

Many are following Peter R.’s thinking, convinced that a miners cartel should not be able to impose changes like this on the network.

For this reason, Bitcoin.com immediately withdrew. The stone was thrown and the hand immediately hidden, perhaps in time before a slap hit it.

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Lorenzo Dalvit

Chief Operations Officer at Deepit AG

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