The latest BCH (Bitcoin Cash) Hard Fork has a strong message for the blockchain community. It is a lesson to develop blockchain apps with long-term perspectives. BCH, one of the fastest-rising cryptocurrencies, hard forks its blockchain twice a year as a protocol for intended upgrades of the technology.
The blockchain is split into two currencies, BCH, the existing one, and BSV, the new currency. The two new coins are; the original BCH, also known as BCH ABC, and SV, the new one, depicting the abbreviation of Satoshi Vision.
Hard forking not only accomplishes a set of technical priorities but also the dynamics of business and economics of cryptocurrencies.
Such development in the industry has a strong impact on users in terms of profit or investment returns. Also, their implications are substantial for developers and technologists. Ahead of the hard fork, there were serious trends in the market.
In terms of technical specifications, the two chains have differences. A major difference is the block size of SV, which is 128MB, much larger than that of ABC.
Additionally, the two blockchains have different protocols. ABC runs on a protocol that is non-backward compatible. After the fork, the chain introduced two new operation codes. Also, canonical transaction ordering is introduced in the chain.
In contrast, the SV follows codes similar to that of Satoshi Nakamoto, the original creator of Blockchain.
There are two sides in the community now, the ABC supporters on one and the Satoshi Version supporters on the other.
Both sides have strong opinions growing as the reasons for the permanent divide.
The original chain, BCH ABC has the support of the original developers. The original community is now collaborating with Bitmain, a strong corporation with massive mining power. With the support, the chain is set to fulfill its technology requirements.
On the other hand, the new Satoshi Version is backed by Coingeek, a mining organization with substantial hash power.
In terms of business prospects, both the old and the new currency has almost equal support.
Most of the top currency exchanges are listing both currencies with equal priorities, even if SV has fewer supporters. Some experts believe ABC has better market recognition as the dominant chain.
Roger Ver, CEO of the original company posed strong skepticism on SV, saying he “really don’t know how long SV is going to last, it may last for years to come or it may disappear after a couple of days.”
Such development in the cryptocurrency industry establishes the fact that the sector is quite volatile. This has a strong message for technologists who develop blockchain apps from business perspectives.
A blockchain creates its own roadmap as per user demands and subsequent upgrades. A long-term vision is an utmost necessity to create a cryptocurrency with strong market prospects.
As the business implication of a blockchain is integrated with its technical background, mechanisms, and protocols supporting a cryptocurrency must be scalable enough to meet the demands of market dynamics.
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