Key Takeaways
- Bitcoin Cash (BCH) successfully completed its November 2020 hard fork upgrade at block height 661,648.
- The fork stems from disagreements over the controversial Infrastructure Funding Plan (IFP).
- Unlike the highly publicized 2018 split, this fork has drawn significantly less attention.
- Two competing implementations emerged: Bitcoin ABC (with IFP) and Bitcoin Cash Node (without IFP).
The Fork Explained
According to Coin Dance, Bitcoin Cash completed its network upgrade on November 15, 2020, at approximately 22:22 UTC. While previous hard forks generated substantial community buzz, this event unfolded with relatively muted interest compared to the 2018 split that created Bitcoin SV (BSV).
The Core Controversy: Infrastructure Funding Plan (IFP)
The primary dispute centered around the IFP proposal, which would:
- Redirect 8% of each block reward to supporting Bitcoin Cash infrastructure
- Create a Global Network Council to oversee fund allocation
- Primarily benefit Bitcoin ABC's development team
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Bitcoin Cash Node emerged as an alternative implementation that removed the IFP from its codebase, citing three major concerns:
- Philosophical Objections: The "miner tax" contradicts Bitcoin's original decentralized principles.
- Security Risks: Reduced mining rewards could decrease network hashpower.
- Transparency Issues: Lack of clear governance structure for fund distribution.
Technical Changes in the Fork
Both implementations introduced a new difficulty adjustment algorithm called ASERT, designed to:
- Stabilize block production at ~10 minute intervals
- Prevent mining concentration fluctuations
- Address historical timing discrepancies
Potential Outcomes
Current network data suggests:
- Bitcoin Cash Node commands ~80% of network hashpower
- Major exchanges (Coinbase, Kraken, BitGo) support BCHN
- The original BCH ticker will likely remain with BCHN
| Scenario | Result |
|---|---|
| BCHN maintains majority | Bitcoin ABC becomes separate chain (potentially "BAB") |
| ABC gains majority | BCHN chain could become invalid |
| Balanced hashpower | Temporary chain split until one dominates |
User Recommendations
- General Holders: No immediate action required if you control private keys.
Transaction Timing: Avoid sending BCH during the transition period due to:
- Lack of replay protection
- Potential chain reorganization risks
Exchange Users: Confirm your platform's support policy:
- Some exclusively back BCHN
- Others may credit both tokens
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FAQ
Q: Will this create a new cryptocurrency?
A: Only if Bitcoin ABC maintains sufficient hashpower. Current indicators suggest BCHN will inherit the BCH ticker.
Q: How does this compare to the 2018 BSV split?
A: The 2018 split involved a public "hash war" and 60% price drop. This fork has generated far less market volatility.
Q: Should I move my BCH to an exchange?
A: Generally not recommended. Self-custody provides most flexibility during network transitions.
Q: When will the situation stabilize?
A: Typically within 24-48 hours post-fork as network hashpower distribution becomes clear.
Q: Are my existing BCH tokens safe?
A: Yes, but confirm your wallet provider supports the correct chain if using third-party software.
Q: What happens to Bitcoin ABC?
A: May continue as separate project (likely "Bitcoin ABC" or "BAB") if it maintains independent miner support.