Bitcoin Cash Provided an Update on the Increasing Loss of Funds

Bitcoin Cash is now sitting at a price of $2,739.30 USD. It will be interesting to watch Bitcoin and Bitcoin Cash this year as both of them progress and resolve issues. Will they both be able to solve the problems that plague them? Will Bitcoin Cash be able to deliver on its forked reason for existence to be a peer to peer payments system? Will Bitcoin be able to fix it’s scaling issues or will it continue operating at its present level? Will the lightning network be implemented shortly for Bitcoin? These are many of the pressing questions that will make or break these cryptocurrencies.

Brief History of Bitcoin Cash

Bitcoin Cash came about because of the longtime pressing issue of Bitcoin and scaling. Segwit was implemented, but there is still a need for the processing of more transactions in a quicker manner for people to be able to utilize Bitcoin as a means of rapid exchange.

The next implementation was supposed to be Segwit2x, but that was delayed. This stoked the ire of those who were in favor scaling. The lack of implementation of Segwit2x was the straw that broke the camel’s back.

The developers who were in disagreement split and announced that they would be conducting a fork, and not a soft one, but a hard one. They would go off an form their cryptocurrency; they would name this new being, Bitcoin Cash. When would this new virtual currency come into existence? On the first of August 2017.

Quick Differences of Bitcoin Cash

Bitcoin Cash has increased block sizes from 1MB to 8 MB, and it will also not have the Segwit implementation. The developers of the project also note that they will be able to support various improvements to its software, in opposition Bitcoin, which primarily runs on its network.

What’s going on now?

One of the core companies behind Bitcoin cash, Bitcoin ABC, which currently is responsible for above 70% of the nodes in the Bitcoin Cash network, has conducted a recent update. This update is one that is quite needed as this would allow for the minimization of loss of user funds in BTC and Bitcoin Cash addresses. One of the most significant problems that occurred from their fork was the fact that Bitcoin and Bitcoin Cash had similar address formats. These similar address formats made it to where users could quickly get confused (and increasingly, did) leading to an increasing loss of funds. These losses could be forever or for a moment.

Bitcoin ABC announced that they would be working to solve this primary issue and more pressing issues. They’ve done so with a different sort of address.

The company commented:

“However, while the problem of funds sent on the wrong chain is pressing, there are other reasons we need to update the address format. It is imperative that the chosen standard for Bitcoin Cash address the various issues present with the current address format as we cannot change addresses every other tuesday. The most important one being that current outputs are using 160 bits hashes for multiparty contracts such as multisig, which is really playing with the limit of what can be considered secure. It is also desirable that the format chosen can accommodate new features we wish to deploy, or, in other terms, be extensible.”

The solution is out there, now everyone who is participating in the Bitcoin Cash system, from wallets to exchanges and businesses, must take it upon themselves to upgrade.

By | 2018-01-05T02:14:07+00:00 January 4th, 2018|Cryptocurrency News|0 Comments

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