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Bitcoin’s Imminent Chain Split

The Bitcoin community has been rife with drama, community splits, censorship and conspiracies. It can be quite tiring to keep up with all of this information so here is a short blog post to summarise for those interested.

The Forkening

As some of you may be aware, the Bitcoin community has been rife with drama, community splits, censorship and conspiracies. It can be quite tiring to keep up with all of this information so here is a short blog post to summarise for those interested.

Tonight will (likely) see a user activated soft fork occur on the Bitcoin network. Once the chain split occurs, miners will choose the most profitable fork, which will declare the winning coin.

Existing owners of Bitcoin (if controlling their own private keys) will see them owning Bitcoins on both forks. People complain about price volatility in cryptocurrencies, but that will (probably) all pale in comparison compared to the next couple of weeks. The market’s price self discovery will become a lot more aggressive, lending rates have shot up to 5% per day on Poloniex, and both sides are bracing for impact.

Another interesting thing are the new futures that are now tradable on the exchanges. Called BCC, or Bitcoin Cash, the tokens represent what the members of /r/btc (reddit) wish to see in the cryptocurrency. At first glance it may seem like a meaningless grab for power by the minority, but the price of BCC shot up to $900 per token a week ago in anticipation of tonight’s event.

The next couple of weeks will hopefully see a conclusion to the constant back and forth, slandering and censorship between the opposing camps.

But probably not.

Some further reading:

https://github.com/bitcoin/bips/blob/master/bip-0148.mediawiki

http://www.uasf.co/

Written by:

John Nguyen

Chief Technology Officer and Co-Founder

John is the Chief Technology Officer of Ninja Software. Managing the day to day operations of the technical team as well as handling long term strategies allows him to apply his broad skillset to both present and future.

He graduated with a Bachelor’s in Mechatronic Engineering at the University of Western Australia in 2008. Starting out in mechanical engineering, he moved to industrial networks and process controls engineering, finally settling on software engineering.

He brings with him solid knowledge and experience with the full software development lifecycle. He also is one of Perth’s leading experts on Blockchain-style solutions. In his spare time he also experiments with distributed systems, countless personal projects and new programming languages and frameworks.