Altcoin News

Bitcoin Cash community divided once again

Bitcoin Cash is a Bitcoin fork in the first place, now this chain looks like it is about to get split once again.

Network Upgrade

On November 15th 2020, a network upgrade is due for Bitcoin Cash. The conversation has been heating up amongst the community, developers specifically, about a specific component of the upgrade. The main point of discussion where the heated arguments are stemming from is the Difficulty Algorithm Adjustment (DAA).

Difficulty Algorithm Adjustment

The DAA regulates the mining difficulty gets adjusted to maintain a uniform block time. In 2017 it was made in way so the adjustment takes place after every block. Some are commenting that this allows malicious users to play with the system. The devs held a meeting that did not end well. Ethereum’s co-founder Vitalik Buterin tweeted at the time.

IFP Coinbase Rule

A subject that has been recurring for a while and remains unresolved amongst the Bitcoin Cash community is whether or not to implement the IFP (Infrastructure Funding Proposal) Coinbase Rule. This proposal allows for a percentage of block rewards to be dedicated for funding the network and hiring talent for maintenance. Which gives it a more corporate-like structure and the rule acts like a tax on miners.

Chain Split

In 2018, there was a split of the Bitcoin Cash network which gave birth to Bitcoin SV. Another split seems to be on the horizon in November 2020 which will likely output: Bitcoin Cash Node (BCHN).

A few days ago, Bitcoin ABC (a full node implementation of Bitcoin Cash) devs released a blogpost stating that the upgrade they are after will adjust the DAA to minimise occasional losses to miners as well implement the coinbase rule that will reinvest 8% of the coinbase reward which would allow them to hire more talent to maintain the network.

This implementation has caused many devs to be willing to fork the network and form BCHN which maintains a non-taxed environment for miners.

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