Hash Wars III: clones clone themselves – Another fork of Bitcoin Cash (BCH)

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Almost one fork a year – After the fork between Bitcoin (BTC) and Bitcoin Cash (BCH) in August 2017, then the fork between BCH and Craig Wright’s BSV in November 2018, a third „hash war“ is looming on November 15. A deep disagreement within the BCH community will provoke a new split into two distinct blockchains.

The cloning of the BCH is no longer stopped: here are now BCHA and BCHN.

The Bitcoin Cash Project communities seem to agree to disagree. The bone of contention is the implementation of an 8% tax on mined block awards.

This implementation, planned for the November 15 fork, has been strongly criticized since its first evocation in early 2020. Although the controversial tax has since been reduced (from 12.5 to 8%), nothing has been done about it: some miners and network nodes will refuse this forced taxation.

The two clans are divided as follows.

On the one hand, there is the clan gathered around Bitcoin ABC, whose crypto will be called „BCHA“. This camp is going to implement the famous tax, which aims to help the development of the BCH network (well BCHA, we must manage to follow!).

On the other hand, there is the „BCHN“ (Bitcoin Cash Node) tribe, led by Roger Ver. They refuse taxation, criticizing in particular the fact that all levies will go to a portfolio controlled by Amaury Séchet.

Contingency plans created in panic by cryptos platforms

The CoinDance site lists which node software client has validated the last 1,000 blocks on the BCH network. The least we can say is that taxation is not going well at all.

As can be seen below, 767 of the last 1000 blocks (more than three-quarters of them) have been mined by nodes with the BCHN tax-free implementation. Only 8 blocks (or 0.8%) have validated a block with the client version of Bitcoin ABC. However, 22.5% of „neutral“ nodes have still not chosen their side.

Distribution of the client types that have validated the last 1000 blocks of the Bitcoin Cash network

As can be seen on the Bitcoin.com site, the exchange platforms and the various cryptos services are a little overwhelmed by so much separatist violence.

Realizing that the big problem is approaching, the Binance and Huobi cryptoexchanges, for example, have just announced that they are going to shut down a number of BCH-related services during this stormy transition phase of the hard fork. More precisely, Binance will stop these BCH futures contracts as a precautionary measure as of November 9.

For Coinbase and BitGo, the decision is clear: both companies will only keep BCHN nodes and will no longer support BCHA after the November 15th fork.

Even if this umpteenth schism seems now inevitable less than 10 days before the hard fork, the BCHA clan seems reduced to a sadness. The last slap in the face of the miners‘ tax camp would be that BCHN finally keeps the title of BCH, knowing the same fate of „forced renaming“ of the BSV.