If you want to talk about the “hottest” event in the blockchain world in the last two weeks, you will surely blurt out “BCH fork and quarrel”.
In fact, this bifurcation event may be the best test paper to test your understanding of blockchain: from the technical, capital, philosophy and other perspectives, check your understanding of this matter to what level.
01
The first layer: a face meng force, concern me what matter
This BCH fork, what does it matter to me, is it another new coin to harvest the small white investors?
If you think about it that way, it’s actually good, at least you know the concept of bifurcation. Readers who have been around a bit longer may also know the difference between a soft fork and a hard fork, and the history of BCH’s branching out from BTC last year.
If you take it that way, this BCH fork probably doesn’t really matter to you. Quietly when a melon crowd, watching the play, there is nothing bad, of course, you will not have what loss.
02
The second layer: store some BCH in advance, waiting for the new coins
Hey? BCH to fork? Do you want to stock up on BCH in advance and wait for the free new coins?
If you think of it this way, you probably know a little bit about the history of last year’s BCH fork, and clearly know that after the BTC fork, BTC supporters got the same amount of NEW coin BCH for free, and the price of “BCH+BTC” was higher than the price of BTC before the fork.
So, you wonder if history will repeat itself this time.
Anyway, you probably bought some BCH weeks ago. And you are pleasantly surprised to find that BCH has “dawdled” from over $400 to over $600 after you bought. In other words, not only are there free new coins to pick up, but prices have soared by more than 40% in just a few days.
So, you can’t help but admire their own “wise and divine”.
However, the good times did not last long, BCH fell from more than 600 dollars to more than 400 dollars, a domestic contract platform is only around 400 dollars (note: now the contract has been suspended). The difference between the contract price and the spot price is almost $100, right?
So, you start to lose…
03
The third layer: clear the cause and effect and the truth of the new currency
You’re not sure what to do, but you have a pretty good idea of the ramifications of the BCH fork and the truth about the new coin.
If so, congratulations on making it to tier 3. Perhaps you have a general idea of why BCH forked, and know that this forking is not the same as forking BCH from BTC, and there is a good chance that no new currency will be created.
The biggest “drama” of this fork is the division of the BCH community, behind which is the battle of computing power. In response to the fork, the BCH community has two camps, namely:
Bitcoin Cash SV (BCHSV) Bitcoin Cash ABC (BCHABC) What are their differences?
BCHSV, led by Craig Wright. This side wants BCH to limit the use of any operational code and focus solely on the evolution of the transfer transaction itself. Therefore, the core proposition of this party is to change the block size. They believe that there should be no upper limit on the block size. They can temporarily set the block size to 128MB.
BCHABC is led by Wu Jihan of The Bitt Land. This side argues that BCH should move towards the public chain with the block size remaining at 32MB. In this way, BCH can be used in more scenarios like ETH and EOS. Therefore, they hope to achieve cross-chain atomic exchange, prophecy machine and other functions through workable code.
04
Level 4: know the reason for the price difference after the rise
If you have a “sense of capital” and can roughly guess why BCH went up and down, and the difference between the contract price and spot price is more than $100, you are in the fourth tier.
There are several explanations for why BCH suddenly exploded:
Bitmain is about to go public, with more than 1 million BCH in hand, pulling is conducive to earnings data; Small white investors with the first three layers of knowledge rush to buy BCH, wanting to get free new coins; The manipulator believes that “the white investors of the first three layers of cognition will scramble to buy BCH and get free new coins, or the manipulator wants to create this illusion, so they pull the market. Whatever the truth, the $600-plus BCH has some investors caught up in the chase, forced to stand on top of the mountain in the cool wind.
As for why it will fall, you probably have a general idea:
Now it is still a bear market. Under the premise of no new funds entering and only capital game in the market, BCH rose more than 40% in one breath. It will certainly face serious selling pressure and powerful sniping from bears, and even “go back to where it rose from”.
As for the contract price and spot price on a contract platform, why the difference of nearly $100? Quite simply, the platform put out an announcement saying that the BCH contract is BCHABC by default, that is, the price of BCHSV must be removed from the existing BCH spot.
P net took the lead in launching two potential forking currencies BCHABC and BCHSV, and provided BCH split service. Before, no matter which side you supported, you could only fight with others in the group. Now, your BCH can be exchanged for one of the potential forks on the P network. When the power war is over, the winning fork will become a real BCH and the losing fork will be zero.
Support Wu Jihan, or support CSW? Sure, but do you really want to put any real money behind it? As the saying goes, many people would rather spend an hour arguing with someone until they are blue in the face than spend $10 betting on their opinion.
From the price of BCHABC and BCHSV (based on P price), it can be seen that most people are optimistic about BCHABC.
However, from the initial 1:8.5 game (that is, if CSW wins, one BCHSV will become 8.5 BCH, and if CSW loses, BCHSV will return to zero) to the current 1:3 game, investors’ opinions have changed significantly.
05
Level 5: Understand the basic technical aspects
If you know how BTC and BCH miners make blocks, and have a general idea of the hashing wars CSW is going to wage, congratulations on entering level 5.
Entering this layer, you may also know the basic way of 51% attack, such as double flower, monopoly mining (isolate the blocks dug by the opponent), know that BTC and BCH adopt the same SHA256 algorithm, know that the computing power of the whole network reaches more than 50,000 P, also know that THE ratio of computing power of BTC and BCH, and their price ratio is basically the same.
Let’s look at the force numbers for the last two days. If the calculation power of BCH is viewed, the CSW group (Coingeek+SVpool+BMG Pool) is far ahead of the group headed by wu jihan (Antpool+ViaBTC+Bitcoin.com).
However, there is BTC mining machine behind Bitmain, which can be called to BCH side in theory. If that’s the case, Bitmain is way ahead of CSW.
In view of the uncertainty during the fork period, it is better not to conduct transfers and other operations during the period from the beginning of the fork to the stability of BCH. It is safer to put BCH in the wallet or a large trading platform that supports the fork.
06
Level 6: Have a good knowledge and understanding of “arithmetic battle”
If you read the bitcoin whitepaper, you know the longest chain principle of Bitcoin, and you know how to kill a chain with arithmetic power; If you know how a 51% empty block attack works and how to defend against a 51% empty block attack, and have a general picture in your head of a power attack (the attackers and defenders keep extending their chains and possibly covering each other back and forth), then congratulations on level 6.
You, on this level, probably know the approximate cost of this CSW attack and bitland defense, know that CSW may fight a frontal or guerrilla war, and imagine the possible outcome of a concentrated battle.
(Photo: from Weibo)
Even, as you probably know, the most technically core disagreement of the debate is the BCHABC team’s addition of OP_CHECKDATASIG and OP_CHECKDATASIGVERIFY and the functionality of those two opcodes, and CSW’s plan to expand the BCH block to 128M, Restore the previous four previously disabled opcodes.
07
Level 7: Understand the fork philosophically
If you know that this disagreement is not between CSW and Wu Jihan, but between two camps and teams, as well as the fundamental logic and philosophy reflected behind them, then congratulations, you have entered the seventh level.
CSW and Wu Jihan, just two of the most prominent camp star. Both of them were already rich and free, and it was too small a pattern to look at this bifurcation with interest and money.
From the most fundamental concept, BCHBSV and BCHABC represent a different direction of progress.
The BSV, or CSW camp, believes that the framework outlined by Satoshi Nakamoto in his white paper is sufficient for BCH to achieve its goal of a world currency. So, they think you can do all kinds of innovations at the application layer, and the bottom layer should be as simple and stable as possible. CSW often uses the Internet’s TCP/IP protocol stack as an analogy.
The CSW camp’s ambition is not only to unify BCH, but also to launch a war against BTC in the future, because in their eyes, BCH is the real BTC, while the current BTC has already gone into a “wrong road” under the leadership of Core.
BCHABC, or Wu Jihan’s camp, believed that things are constantly evolving, and the only constant in the world is change itself. Hayek’s ideas are the cornerstone of their philosophy. They do not think that Satoshi nakamoto’s white paper has designed everything, just copy it, but should comply with the progress of The Times, the development of the market and competition of other currencies, adapt to the trend to make corresponding adjustments, even if it is the adjustment of the bottom.
To quote Wu Jihan, “It is as if the United States gained its independence from Britain, but americans call their country The United States. No American will say that the United States is the real Britain.” In his opinion, BTC is BTC and BCH is BCH, and they share a history but are separate.
Even more, we can dig deeper into CSW’s rationale for waging war:
CSW believes that the decentralization of Bitcoin does not mean that there is no need for regulation, and it does not mean that people can be sheltered from illegal uses. Instead, for Bitcoin to become a global currency — the “peer-to-peer electronic cash system” described in the white paper — it must embrace regulation and be legal around the world. In short, anarchism is not bitcoin itself. For Bitcoin To become a global currency, CSW believes it needs top-level design, especially if it first gets through the To B (enterprise) end rather than the To C (user) end. The core value of cash is to facilitate the circulation of all things, and to be the price of all things, rather than wealth itself. CSW believes that its own implementation of large block or even unlimited block, as well as the enterprise account transfer application route, than BCHABC offline payment promotion route, more in line with the essence of cash. CSW believes that in today’s world, a thing still needs a lot of “top-down” top-level design at the beginning of its birth. The United States is a country where many things emerge from the “bottom up”, but its core is still a top-down “Philadelphia Convention” constitution of the bottom logic and boundaries.