Bitcoin mining pool and exchange ViaBTC says it will designate a “Bitcoin Cash” (BCC) token in the event of a user-activated hard fork (UAHF) in August. The decision came after the company received several enquiries from miners and cloud mining contract holders.
‘Bitcoin ABC’ Could Become Real If UAHF Activates
The UAHF proposal is now officially called “Bitcoin ABC“. Introduced by a group including the world’s largest mining company Bitmain, its aim is to prevent the user-activated soft fork (UASF) proposal from taking hold on 1st August.
As of now, the three main proposals vying for support are: the “New York Agreement” (SegWit2x), UASF (BIP148 SegWit), and Bitcoin ABC. Each either promises, or carries the potential, to fork Bitcoin into two or more active blockchains.
ViaBTC officially supports the New York Agreement. This implements SegWit immediately on 1st August (if enough nodes support it) and includes a built-in hard fork further down the road. Therefore, ViaBTC would consider any chain running Bitcoin ABC to not be “true” Bitcoin.
However the tokens on such a blockchain may still have value, so ViaBTC’s clients would like to have some. To do this, The company will launch a BCC mining pool and lock the activation time at 08:00 UTC on 1st August 2017.
Miners who choose that option will still be mining BTC right up to that point, and then switch.
At press time, ViaBTC is the world’s eighth largest bitcoin mining pool with around 5.9 percent of the total hashrate. It also has litecoin pools.
ViaBTC’s Cloud Miners and Exchange Traders
The company’s exchange will also introduce new assets called “BCC” and “BTC_FROZEN2” — however deposits and withdrawals will not be available for that token at first. BTC_FROZEN2 represents frozen BTC value and cannot be traded. Users can trade 1 BTC fro 1 BCC or 1 BTC_FROZEN2, and vice-versa.
If the UAHF activates, the platform will introduce a new BCC/CNY trading pair. At that point, BTC_FROZEN2 tokens will become BTC balances again.
Bitcoin Under a Cloud of Uncertainty
It’s important to note that Bitcoin ABC’s hard fork isn’t guaranteed to happen. It’s designed to be a contingency plan, in the event SegWit2x does not gain enough support to activate.
If it doesn’t, the UASF/BIP148 option could triumph, and also split the chain if there is still significant opposition to it.
It’s a sign of how contentious the Bitcoin scaling debate has become. Although SegWit2x gained support as a compromise solution, it still faces a lot of opposition from groups who oppose any transaction block size increase. These groups are promoting the UASF and still claim it will be the dominant solution after August.
Bitcoin holders are strongly advised to confirm what their own exchange will do, and/or move balances to wallets that store private keys locally. As a precaution, it’s also advisable not to attempt any bitcoin transactions during the period where a hard fork could occur.
What do you think will happen on 1st August? Share your thoughts below.
Images via Pixabay, Bitcoin ABC, ViaBTC