Bitcoin Cash (BCH) is set to undergo another hard fork on November 15, 2020. This marks the seventh major upgrade since its inception in 2017—a network known for its contentious splits. Below, we explore BCH's evolution, key technical differences among Bitcoin variants, and the implications of its latest division.
The Genesis: How BTC, BCH, and BSV Emerged
Bitcoin's Scalability Crisis (2009–2017)
- Original Vision: Satoshi Nakamoto designed Bitcoin as a peer-to-peer electronic cash system with 1MB blocks, processing ~7 transactions/second.
- Bottlenecks: By 2013, network congestion spiked fees and delayed transactions, prompting debates about scaling solutions.
- The Split: In August 2017, proponents of larger blocks (8MB→32MB) forked to create Bitcoin Cash (BCH), diverging from BTC’s SegWit/Lightning Network approach.
The BCH/BSV Schism (2018)
- Disagreement: Nchain’s Craig Wright opposed BCH’s smart contract plans, advocating for a "locked protocol" with 128MB blocks.
- Outcome: On November 16, 2018, BCH split into BCH ABC (maintained by Bitcoin ABC team) and BSV (Satoshi’s Vision).
- BSV’s Path: Later upgraded to 2GB blocks, focusing on enterprise data ledger applications.
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Comparative Analysis: BTC vs. BCH vs. BSV
| Feature | BTC | BCH | BSV |
|---|---|---|---|
| Block Size | 1MB (SegWit effective ~2MB) | 32MB | 2GB (unlimited scaling) |
| Focus | Store of value ("Digital Gold") | Electronic cash + smart contracts | Global enterprise ledger |
| Adoption | ~99.9% of crypto ATMs | ~32% of crypto ATMs | Niche enterprise use |
Key Observations:
- BTC: Prioritizes decentralization; Lightning Network adoption stagnates.
- BCH: Balances payments and apps but faces developer funding challenges.
- BSV: Targets regulated enterprises but struggles with market trust.
The 2020 Fork: Clash Over Developer Funding
Root Cause: Infrastructure Financing Plan (IFP)
- Proposal: BCH ABC pushed for 8% of block rewards to fund developers, citing sustainability needs.
- Backlash: Miner revenues at stake; community launched BCH Node (BCHN) to remove IFP.
Outcome Predictions
- Dominance: As of November 2020, BCHN mined 84.2% of recent blocks vs. 0% for BCH ABC.
- Risks: Potential 51% attacks post-fork due to reduced chain security.
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FAQs on BCH Forks
Q: How do forks affect BCH holders?
A: Users receive 1:1 new tokens but must avoid transfers during forks to prevent replay attacks.
Q: Why does BSV support massive blocks?
A: Aims to enable enterprise-scale data storage (e.g., Metanet) but faces centralization critiques.
Q: Will BCH’s payment adoption grow?
A: Despite 3821 ATMs globally, it trails BTC’s near-universal acceptance—key to watch post-fork.
Conclusion
BCH’s forks reflect deeper ideological and economic rifts. While the 2020 split highlights funding disputes, its history underscores crypto’s governance complexities. Stakeholders must weigh technical trade-offs against long-term visions—whether as cash, gold, or ledger.
For real-time updates on the fork, monitor BCHN metrics.
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