Monday, September 25, 2017

Effects of China banning bitcoin

The number one effect of  ICO's being ban on China was the lowering down of the value of  bitcoin . Remember that the value of bitcoin a few weeks ago is going up until it was reaching the $5000 / per bitcoin. But it had not reached the $5000 mark and it lowers down now which is about $4000/ bitcoin. 

Because of this development wrote to each member that bitcoin mining will probably be affected since a lot of miners are from China. 

Image result for banning of bitcoin in china

Here's  the message ;                 

Hello miner Rodolfo.

As you may have heard in the news over the last few weeks, China has implemented bans on ICOs (initial coin offerings) and now Bitcoin and other cryptocurrency trading. It is unclear if they are going to ban Bitcoin mining.

Eobot currently runs the majority of our Bitcoin mining in China. Depending on if, and how, they ban Bitcoin Mining (for example, they may let us ship the hardware out of the country to continue mining), Eobot may be forced to terminate Cloud Mining/GHS contracts early.

We hope this doesn't happen, but we are announcing this to our usbelieers to be fully transparent and allow the option to trade and sell their GHS early and before a China ban becomes a reality.

Until next time...happy mining,
-The Eobot Team
Terms and Conditions | Privacy Policy | Compliance

2013-2017 Eobot Inc.

I do believe that if the banning will continue it will affect the mining of bitcoin as well as the value. 

Since i am involve in cloud mining , i will probably sell my GHS which was supposed to be a contract up to 5 years. 

While waiting for the GHS to be sold ,  it would probably good to mined all the bitcoins in

visit my site for other sources of bitcoin and altcoins ;

Saturday, September 16, 2017

Why Bitcoin goes up then down ?

A lot of people involve in bitcoin were expecting that the value in dollars would reach about $5000. While its almost had reached the $5000 , then it dropped to almost $3000 but now its regaining again. Investors were worried but those big ones didnt  caused they might be the one who cause the downward trend and now its picking up. 

I remember to watch this video about the rise and fall of bitcoin and had me no worries ;

Coinbase Co-founder Fred Ehrsam break silence On Bitcoin, Ethereum and Litecoin future on platform!!

But the rise and fall would be a normal thing until the bitcoin reaches its final height and settles but other sectors sees a different  reason why the bitcoin price suddenly dropped; 

Reasons ; 

-The comment of Jamie Dimon that bitcoin is a fraud but had a big investment in ethereum,
-Chinas move to regulate bitcoin 

There's no doubt that all governments as well as big banks and big investors will do everything to put down bitcoin but they are being side stepped as "bitcoin cointinues" to be on the mainstream

After almost seven years bitcoin and blockchain are now being recognized  start now with being involve with bitcoin and blockchain  

Saturday, September 9, 2017

Catching up with digital currency developments

The latest article that i posted regarding the explanation of  Andreas Antonopolous regarding the split, the segwit ,  about the fork and what  is expected with this development had given me the assurance of the continues struggle of bitcoin in the digital currency world.  Meaning since this is a new technology and with the present debate , its only a consensus within the users that will determine who is right in the new changes.  With this assurance we can continue with our goal to have the most number of bitcoins and other cryptos that we can to reach the highest as far as we can get.  ( Bear with me on getting bitcoins and other bits here on my page " Earn bits the easy way"

We will also continue with educating ourselves regarding the different issues about bitcoin , the blockchain and the other related matters to the digital eco systems.   Developments and new creations within the digital currency world is very fast and with the original bitcoin it had already reached an amount of  $4,600 /bitcoin  and the bitcoin cash with $700 / bcc . Other alt coins is also fastly having their good time.  So we also have to be fast in order to catch up we had started late but we can still learn the trade. 

We are and we will be concentrating with many alt coins but what do we know about this different alt coins ? 

Let's use this explanations from qoin pro which is a micro-wallet that gives out satoshis or bits for alt- coins for FREE. For beginners who are just starting with bitcoins and alt coins you will receive satoshis for FREE.  

What are Crypto Currencies?

The Wiki describes it well; a cryptocurrency (such as Bitcoin, Litecoin, Feathercoin, etc.) is a peer-to-peer, decentralized, digital currency whose implementation relies on the principles of cryptography to validate the transactions and generation of the currency itself.


A cryptocurrency is a peer-to-peer, decentralized, digital currency whose implementation relies on the principles of cryptography to validate the transactions and generation of the currency itself.


Peer-to-peer refers to each node on the network being able to connect to any other node and act as both a server and a client sharing updates to the blockchain (public ledger) without the need for a central server.


Decentralized refers to the peer-to-peer architecture of the network. Because each node can act as both a server and a client, there is no need for a central server or centralized authority, thus effectively solving the double spending problem.

Digital currency

Digital currency, among its various names, is electronic money that acts as alternative currency in the digital realm (though offline adoption is increasing as well). Currently, alternative digital currencies are not produced by government-endorsed central banks nor necessarily backed by national currency.

Principles of cryptography

Cryptography relies on public and private keys for security. With cryptocurrencies every transaction has to be signed by a private key for security. Due to the strong security and well understood principles of cryptography, counterfeiting digital currencies is virtually impossible.

What are Alt-coins?

Currently there are dozens, possibly hundreds of altcoins
Altcoins are real cryptocurrency alternatives to Bitcoin. Many of them differ in some way or form from the Bitcoin and are interesting in their own right however some of them are plain copies. Listed on this page are their basic characteristics.

 List of SHA256 based Alt-coins

There are many SHA256 based altcoins. The following list is not exhaustive and only serves to give an impression about other coins available. Some of these coins can also be collected through  QoinPro.
AbbreviationNameAlgorithmTotal CoinsRetargetReward
NMCNamecoinSHA25621,000,0002,01650 NMC / Block
PPCPeercoinSHA256No Limit1103.10 PPC / Block
DVCDevcoinSHA256No Limit2,0165000 DVC / Block
TRCTerracoinSHA25642.000.000540 Blocks20 TRC / Block

 List of Scrypt based Alt-coins

There are many Scrypt based altcoins. The following list is not exhaustive and only serves to give an impression about other coins available. Some of these coins can also be collected through  QoinPro.
AbbreviationNameAlgorithmTotal CoinsRetargetReward
LTCLitecoinScrypt82,000,0002,01650 LTC / Block
DOGEDogecoinScrypt100,000,000,000240250,000 DOGE / Block
WDCWorldcoinScrypt265,420,80012050.79 WDC / Block
FTCFeathercoinScrypt336,000,000504200 FTC / Block

 List of Hybrid/Other Alt-coins

There are many altcoins not based on SHA256 or Scrypt. The following list is not exhaustive and only serves to give an impression about other coins available. Some of these coins can also be collected through QoinPro.
AbbreviationNameAlgorithmTotal CoinsRetargetReward
QRKQuarkcoinOther202 QRK / Block

The alt coins above are from qoin pro , there are still more  alt coins  


Wednesday, September 6, 2017

The "bitcoin boy" is siding with what should be

The split within bitcoin , original bitcoin and the bitcoin cash had produced some indecisions on what do you expect to happen with bitcoin , given that there was already a split . 

Where do you concentrate between the two. So for me to understand what is happening a more thorough understanding on why the split had happened would lead us more to the technical know how about this new technology. Andreas Antonopolous the bitcoin boy is highly reliable about this matter. Watch his explanation about the scaling , segwit and concensus. He is not siding with any of the two, he is for where bitcoin should be and predicts what would happen again. 

This video was posted on you tube before the split and Andreas already know what will happen. Important points on Andreas explanations ; 

1. Bitcoin has the ability to "fork" meaning to split, partition in two because if you have ten thousand computers in the world
and there is a disagreement. you have to split temporary and come back again to agree. Bitcon does this, this happens within bitcoin and nobody notice this. 

2. There is a different kind of  fork , when rules change or part of the network change the rules . How big is the block today there is a rule that the block should be 1 meg , thats it every 10 minutes 1 meg, 6 blocks an hour, 144 megs a day and thats it.  Tthe capacity of the transaction and that causes the fees and the capacity  issues.  That some people wants to change the rules , how about 2 meg,  4 meg or 8 meg or what ever. 

3. But in order to that , there is a need to convince everyone or there they end up splitting the network so they will do there own bitcoin . which has different set of rules and different from the original bitcoin which has its set of rules. There is such a thing called "consensus fork" 

4. There is an ongoing scaling  debate for the last two years , which was "how to make bitcoin" to  support of more transactions? The difficulty is giving more power to some participants than  others , that is why giving it free and more open . decentralized,  while doing more transactions is the "hard question"  So we have to make it free , open but a lot of people dont want that kind of answers. So they are not willing to do that, so that was the debate ?

5. There are three on going proposals , one segregated witness which means to restructure transactions in such a way to have two parts of the transaction one who has to contain the signatures and the other one contains everything else , this will necessary increase the space by about 1.7 meg , almost twice the space in the transactions. 

The alternative proposal was just to increase the block size by  2 meg and the the third proposal was to do both 
transactions was to do both which was called segwit 2x . the first was to do segwit , then 3 months after increase the size of the block by about 2 megabytes .  Those are competing proposals and the latest competition works that everybody gets the software to choose in one specific software for the proposals  Then depending on the number of people running the different set of rules at the end of the day there might be some problems. 

At this plays out , we will be having a failing eventful  85% of the people will change the rules on July and August will have segwit activated then transactions will contunue . There is a small possibility that there would be a small chain 10, 15 who will disagree and they will have a separate bitcoin . And if that happens , remember this if you have a wallet that controls your bitcoin , meaning you control your keys not the money in an exchange which you dont have control on your own keys or wallet.  

After the fork , you should be controlling your bitcoin on both sides . Now you have bitcoin Alpha and bitcoin Beta and then you could keep to both or sell one or buy the other or whatever you want.  Or you do nothing , just watch the development in a matter of days . The important thing is that you must control your own bitcoins. 

If you have put your bitcoins on exchanges then you dont control your bitcoins . Bitcoin is about individual participation on controlling the system not trusting somebody elses your money . So when you trust your money to someone else this is banking, where the possibility of these people running the bank runs with your money. They have the tendency to do that .  Bitcoin is not like that you hold your own money and if you give your money thru an exchange you give them the chance to hold your money then there is a chance they will run away with your money. 

In finality Andreas says that this disagreement about bitcoin continues because this is a new system where there is no one controlling the system, its a free and open system where the consensus rules. Rules on bitcoin was there is always forking but then there will be agreements because there is a consensus rule, so there could be disagreements but there will be a time for agreements. 

This is part of a talk which took place on July 7th 2017 at a Bloktex event hosted by the Wisma BeeOn Group in Kuala Lumpur, Malaysia: RELATED: Scaling is a moving target - Forkology: A Study of Forks for Newbies - Fee markets, SegWit, and scaling - What happens to our bitcoins during a hard fork? - Rules vs. Rulers - Does Lightning need SegWit? - The revolution in trust - Altcoins and the scaling debate - Governance trade-offs in decentralised systems - Ethereum: Lessons from the hard fork - Is Bitcoin a democracy? - Bitmain and the ASICBoost allegations - Unlimited vs. Cypherpunks - Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin. Follow on Twitter: @aantonop Website: He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters. THE INTERNET OF MONEY, v1: MASTERING BITCOIN: [NEW] MASTERING BITCOIN, 2nd Edition:

Friday, September 1, 2017

From blockgeeks about bitcoin cash

We need to understand what is bitcoin cash , the original bitcoin and what is the split all about . Only by understanding what is happening could we have the basis in our decision regarding  what to choose or where do we stand with these new tech controversies. 

What is Bitcoin Cash? A Basic Beginners Guide

In this guide, we are going to be telling you about all the incidents that have led up to the creation of Bitcoin Cash. This is purely for educational purposes.
Bitcoin is, without a doubt, one of the most incredible innovations in the recent past. However, it has also come under a lot of criticism for its scalability issues which has given rise to a lot of debates which are politically as well as ideologically motivated. Finally, on August 1, 2017, bitcoin went through a hard fork which gave birth to Bitcoin Cash. We are not going to be telling you which side is right and which side is wrong, that is totally up to you

How do bitcoin transactions work?

Bitcoin was introduced by an unknown man/woman/group going by the pseudonym, Satoshi Nakamoto in their, now legendary, research paper “Bitcoin: A Peer-to-Peer Electronic Cash System”. What bitcoin provided was a peer-to-peer decentralized, digital currency system. The entire system of bitcoin functions due to the work was done by a group of people called “miners”.
 So what do these miners do? The two biggest activities that they do are:
  • Mining for blocks.
  • Adding transactions to the blocks.

Mining for blocks
All the miners use their computing power to look for new blocks to add to the blockchain. The process follows the “proof of work” protocol and once a new block has been discovered, the miners responsible for the discovery get a reward, currently set at 12.5 bitcoins (it is halved after every 210,000 blocks), however, this isn’t the only incentive that the miners have.

Adding transactions to the blocks
When a group of miners discovers and mine a new a new block, they become temporary dictators of that block. Suppose Alice has to send 5 bitcoins to Bob, she isn’t physically sending him any money, the miners have to actually add this transaction to the blocks in the chain and only then is this transaction deemed complete. In order to add these transactions to the blocks, the miners can charge a fee. If you want your transaction to be added quickly to these blocks, then you can give the miners a higher fee to “cut in line” so to speak.

For a transaction to be valid, it must be added to a block in the chain. However, this is when a problem arises, a block in the chain has a size limit of 1 MB and there are only so many transactions that can go at once. This was manageable before, but then something happened which made this a huge problem, bitcoin became famous!

The bitcoin scalability problem aka does size matter?

Yes, Bitcoin became popular and with that came its own series of problems.
In this graph you can see the number of transactions happening per month:
What is Bitcoin Cash? A Basic Beginners Guide
Image source: Wikipedia

As you can see, the number of monthly transactions is only increasing and with the current 1mb block size limit, bitcoin can only handle 4.4 transactions per second. When Bitcoin was first created, the developers put the 1mb size limit by design because they wanted to cut down on the spam transactions which may clog up the entire Bitcoin network.

However, as the number of transactions increased by leaps and bounds, the rate at which the blocks filled up were increasing as well. More often than not, people actually had to wait till new blocks were created so that their transactions would go through. This created a backlog of transactions, in fact, the only way to get your transactions prioritized is to pay a high enough transaction fee to attract and incentivize the miners to prioritize your transactions.

This introduced the “replace-by-fee” system. Basically, this is how it works. Suppose Alice is sending 5 bitcoins to Bob, but the transaction is not going through because of a backlog. She can’t “delete” the transaction because bitcoins once spent can never come back. However, she can do another transaction of 5 bitcoins with Bob but this time with transaction fees which are high enough to incentivize the miners. As the miners put her transaction in the block, it will also overwrite the previous transaction and make it null and void.

While the “replace-by-fee” system is profitable for the miners, it is pretty inconvenient for users who may not be that well to do. In fact, here is a graph of the waiting time that a user will have to go through if they paid the minimum possible transaction fees:
What is Bitcoin Cash? A Basic Beginners Guide
Image courtesy: Business Insider.

If you pay the lowest possible transaction fees, then you will have to wait for a median time of 13 mins for your transaction to go through.
To repair this inconvenience, it was suggested that the block size should be increased from 1mb to 2mb. As simple as that suggestion sounds, it is not that easy to implement, and this has given rise to numerous debates and conflicts with team 1mb and team 2mb ready to go at each other with pitchforks. As already mentioned, we want to take a neutral stance in this whole debate and we would like to present the arguments made by both sides.

Arguments against block size increase

  • Miners will lose incentive because transaction fees will decrease: Since the block sizes will increase transactions will be easily inserted, which will significantly lower the transaction fees. There are fears that this may disincentivize the miners and they may move on to greener pastures. If the number of miners decreases then this will decrease the overall hashrate of bitcoin.

  • Bitcoins shouldn’t be used for everyday purposes: Some members of the community don’t want bitcoin to be used for regular everyday transactions. These people feel that bitcoins have a higher purpose than just being regular everyday currency.

  • It will split the community: A block size increase will inevitably cause a fork in the system which will make two parallel bitcoins and hence split the community in the process. This may destroy the harmony in the community.

  • It will cause increased centralization: Since the network size will increase, the amount of processing power required to mine will increase as well. This will take out all the small mining pools and give mining powers exclusively to the large scale pools. This will in turn increase centralization which goes against the very essence of bitcoins.

Arguments for the block size increase

  • Block size increase actually works to the miner’s benefit: Increased block size will mean increase transactions per block which will, in turn, increase a number of transaction fees that a miner may make from mining a block.

  • Bitcoin needs to grow more and be more accessible for the “common man”. If the block size doesn’t change then there is a very real possibility that the transactions fees will go higher and higher. When that happens, the common man will never be able to use it and it will be used exclusively only by the rich and big corporations. That has never been the purpose of bitcoin.

  • The changes won’t happen all at once, they will gradually happen over time. The biggest fear that people have when it comes to the block size change is that too many things are going to be affected at the same time and that will cause major disruption. However, people who are “pro block size increase” think that that’s an unfounded fear as most of the changes will be dealt with over a period of time.

  • There is a lot of support for block size increase already and people who don’t get with the times may get left behind.

In order to solve the scalability issues there were two suggestions made:

Before we go into any of them, however, let’s understand the fundamental difference between a soft fork and a hard fork. A fork is a condition whereby the state of the blockchain diverges into chains were a part of the network has a different perspective on the history of transactions than a different part of the network. That is basically what a fork is, it is a divergence in the perspective of the state of the blockchain.

What Is A Soft Fork?

Whenever a chain needs to be updated there are two ways of doing that: a soft fork or a hard fork. Think of soft fork as an update in the software which is backwards compatible. What does that mean? Suppose you are running MS Excel 2005 in your laptop and you want to open a spreadsheet built in MS Excel 2015, you can still open it because MS Excel 2015 is backwards compatible.

BUT, having said that there is a difference. All the updates that you can enjoy in the newer version won’t be visible to you in the older version. Going back to our MS excel analogy again, suppose there is a feature which allows to put in GIFs in the spreadsheet in the 2015 version, you won’t see those GIFs in the 2005 version. So basically, you will see all text but won’t see the GIF.

What Is A Hard Fork?

The primary difference between a soft fork and hardfork is that it is not backward compatible. Once it is utilized there is absolutely no going back whatsoever. If you do not join the upgraded version of the blockchain then you do not get access to any of the new updates or interact with users of the new system whatsoever. Think PlayStation 3 and PlayStation 4. You can’t play PS3 games on PS4 and you can’t play PS4 games on PS3.

What is Bitcoin Cash? A Basic Beginners Guide

Andreas Antonopoulos describes the difference between hard and soft fork like this:
If a vegetarian restaurant would choose to add pork to their menu it would be considered to be a hard fork. if they would decide to add vegan dishes, everyone who is vegetarian could still eat vegan, you don’t have to be vegan to eat there, you could still be vegetarian to eat there and meat eaters could eat there too so that’s a soft fork.

However, for any major changes to happen in bitcoin, the system needs to come to a consensus. So, how does a decentralized economy come to an agreement on anything?
Right now the two biggest ways that are achieved are:
  • Miner Activated: Basically changes that are voted on by miners.
  • User Activated.: Changes that are voted on by people with active nodes.

Before we go on any further, we need to understand what Segwit is.

What is segwit?

We won’t go very deep into what segwit is but, in order to get why bitcoin cash came about, it is important to have an idea of what it is. Just to reiterate what we have mentioned before, we won’t be taking any side in this debate, we will simply be educating you about it.

When you closely examine a block, this is what it looks like:
What is Bitcoin Cash? A Basic Beginners Guide
Image Courtesy: Riaz Faride

There is the block header of course which has 6 elements in it, namely:
  • Version.
  • Previous block hash.
  • Transaction Merkle roots.
  • Epoch time stamp.
  • Difficulty target.
  • Nonce.
And along with the block header, there is the body, and the body is full of transactions details.
So, what does a bitcoin transaction consist of? Any transaction consists of 3 elements:
  • The sender details which is the input.
  • The receiver details i.e. the output.
  • The digital signature.

The digital signature is extremely important because it is what verifies whether the sender actually has the required amount of funds needed to get the transaction done or not. As you can see in the diagram above, it is part of the input data.  Now, while this is all very important data there is a big big problem with it. It takes up way too much space. Space that already is in limited availability thanks to the 1 MB block size. In fact, the signature accounts for nearly 65% of the space taken by a transaction!

Dr. Peter Wuille has come up with a solution for this, he calls it Segregated Witness aka Segwit.
This is what will happen once segwit is activated, all the sender and receiver details will go inside the main block, however, the signatures will go into a new block called the “Extended Block”.

What is Bitcoin Cash? A Basic Beginners Guide
So what this will do is that it will create more space in the blocks for more transactions. Now that you have a very basic understanding of what segwit is, let’s check out its pros and cons.

What are the pros and cons of segwit?

Pros of segwit:
  • Increases a number of transactions that a block can take.
  • Decreases transaction fees.
  • Reduces the size of each individual transaction.
  • Transactions can now be confirmed faster because the waiting time will decrease.
  • Helps in the scalability of bitcoin.
  • Since the number of transactions in each block will increase, it may increase the total overall fees that a miner may collect.

Cons of segwit:
  • Miners will now get lesser transaction fees for each individual transaction.
  • The implementation is complex and all the wallets will need to implement segwit themselves. There is a big chance that they may not get it right the first time.
  • It will significantly increase the usage of resources since the capacity, transactions, bandwidth everything will increase.

When the developers built SegWit they added a special clause to it. It can only be activated when it has 95% approval from the miners. After all, it is a huge change in the system and they figured that getting a super majority was the way to go. However, this caused a disruption in the system. Most miners don’t want segwit to be activated. They are afraid that since the available block space will increase, it will drastically reduce the transaction fees that they can get. As a result, they stalled segwit which in turn infuriated the users and businesses who desperately want segwit to be activated.

Eventually, they came up with the idea of a UASF aka User Activated Soft Fork called BIP 148.

What is a BIP?

BIPs or Bitcoin Improvement Proposals is a design document which introduces various designs and improvements to the bitcoin network. There are three kinds of BIPs:

  • Standards Track BIPs: Changes to the network protocol, transaction, and blocks.
  • Informational BIPs: Dealing with design issues and general guidelines.
  • Process BIPs: Changes to the process.

So what is BIP 148?

The BIP 148 is a user activated soft fork i.e. a soft fork that has been activated by the users. What it states is that all the full nodes in the bitcoin networks will reject any and all blocks that are being created without segwit ingrained in it. The idea is to motivate the miners to put segwit activation in the blocks that they mine for it to be part of the system.

It is hoped that by encouraging more and more miners to come over to the BIP 148 side, eventually the 95% threshold limit will be crossed and segwit will be activated. There are legit fears of a chain split happening but that can be easily avoided if just 51% of the miners come over to the BIP 148 side. Have more than half of the miners to the other side will greatly reduce the hash rate of the legacy chain i.e. the original chain.

Going by the coordination game-theory, the miners will be compelled to come over to the other side with the majority. This however raised a serious concern. What if the change over doesn’t happen smoothly and what if it does cause a legitimate chain split? This could spell disaster and this is the exact issue raised by the mining company Bitmain. So, as a contingency plan for BIP 148, Bitmain proposed a UAHF aka User Activated Hard Fork.

What is the UAHF?

The User Activated Hard Fork is a proposal by Bitmain which will enable the construction of a whole new form of bitcoin and blocks with larger sizes. Since this is a hard fork, the chain will not be backwards compatible with the rest of the bitcoin blockchain. The biggest reason why this looks so appealing is that the hard fork does not require a majority of hashpower to be enforced. All nodes who accept these rule set changes will automatically follow this blockchain regardless of the support it gets. At the same time, many people just weren’t happy with the idea of signatures being kept separate from the rest of the transaction data, they considered it to be a hack.

Bitmain visualizes this as a voluntary escape for everyone who is not interested in following up with the BIP 148 proposal. If you don’t like it then jump ship and you can be a part of this new chain. At the “Future of Bitcoin” conference a developer named Amaury S├ęchet revealed the Bitcoin ABC (Adjustable Blocksize Cap) project and announced the upcoming hardfork. Following the announcement, and after Bitcoin ABC’s first client release, the project “Bitcoin Cash” (BCC) was announced which came into full effect on August 1.

What is Bitcoin Cash?

This is how Bitcoin Cash project website is defining itself: “Bitcoin Cash is peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate.” Did you notice the emphasis on the words “peer-to-peer electronic cash”? It is done by design because the primary motivation of bitcoin cash’s existence depends solely on carrying out more transactions as Jimmy Song points out in his Medium article.
What is Bitcoin Cash? A Basic Beginners Guide
Bitcoin Cash (BCH) is a lot like Bitcoin but has some very noticeable differences:

  • The blocksize is 8 MB.
  • It won’t have segwit.
  • It won’t have the “replace by fee” feature.
  • It will have replay and wipeout protection.
  • It offers a way to adjust the proof-of-work difficulty quicker than the normal 2016 block difficulty adjustment interval found in Bitcoin.

Since BCH is a result of a hardfork, anyone who possessed BTC got the equal amount of coins in BCH PROVIDED they didn’t have their BTC in exchanges and were in possession of their private keys at the time of the hardfork. So now let’s go through certain interesting features of Bitcoin Cash.

How Bitcoin Cash prevents replay attacks?

One of the best features of Bitcoin Cash is how it circumnavigates one of the biggest problems that any cryptocurrencycan face post-forking, the replay attack.

What is a replay attack?

A replay attack is data transmission that is maliciously repeated or delayed. In the context of a blockchain, it is taking a transaction that happens in one blockchain and maliciously repeating it in another blockchain. Eg. Alice is sending 5 BTC to Bob, under a replay attack she will send him 5 BCH as well, even though she never meant to do that.

So, how does Bitcoin cash prevent replay attacks? (data are taken from Andre Chow’s answer in stack exchange)

  • Using a redefined sighash algorithm. This sighash algorithm is only used when the sighash flag has bit 6 set. These transactions would be invalid on the non-UAHF chain as the different sighashing algorithm will result in invalid transactions.

  • Using OP_RETURN output which has the string “Bitcoin: A Peer-to-Peer Electronic Cash System” as data. Any transaction which contains this string will be considered invalid by bitcoin cash nodes until the 530,000th block.  Basically, before that block you can split your coins by transacting on the non-UAHF chain first with the OP_RETURN output, and then transacting on the UAHF chain second.

How does Bitcoin Cash attract miners?

Any cryptocurrency depends heavily on its miners to run smoothly. Lately, bitcoin cash has attracted a lot of miners which has significantly improved its hash rate. Here is how they did that. For this, we will take the brilliant Jimmy Song’s help again.

Bitcoin cash has a set rule as to when it decreases its difficulty. Before we see the rule it is important to understand what Median Time Past (MTP) is. It is the median of the last 11 blocks that have been mined in a blockchain.  Basically, line up the last 11 blocks one after another and the time at which the middle block is mined is the median time past of the set. The MTP helps us determine the time at which future blocks can be mined as well. Here is a chart of the MTP of various blocks:
What is Bitcoin Cash? A Basic Beginners Guide
Image courtesy: Jimmy Song Medium article.

So, this is the rule for difficulty adjustment in bitcoin cash: If the Median Time Past of the current block and the Median Time Past of 6 blocks before is greater than 12 hours then the difficulty reduces by 20% i.e. it becomes 20% easier for miners to find newer blocks. This gives the miners some power to adjust difficulty, eg. checkout the 13-hour gap between blocks 478570 and 478571. The miners may have simply been doing this to make the blocks easier to mine.

Another interesting thing to note is how and when the difficulty rate can adjust in a cryptocurrency. This is a graph which tracks the difficulty rate of BCH:
What is Bitcoin Cash? A Basic Beginners Guide
Image courtesy:

The difficulty rate adjusts according to a number of miners in the system. If there are fewer miners, then the difficulty rate goes down because the overall hashing power of the system goes down. When bitcoin cash first started it was struggling a bit to get miners, as a result, its difficulty dropped down drastically. This, in turn, attracted a lot of miners who found the opportunity to be very lucrative. This caused an exodus of miners from BTC so much so that the hashing power of BTC halved, decreasing the transaction time and increasing the fees. Reports on social media stated that BTC transaction was taking hours and even days to complete.
Here is the graph that shows the drop in hash rate of BTC:
What is Bitcoin Cash? A Basic Beginners Guide
Image courtesy: Investopedia

The value of Bitcoin Cash

As of writing, BCH is the second most expensive cryptocurrency in the world behind BTC at $573.35 per BCH with a market cap of $9.4 billion (which is the third highest behind BTC and ETH). Its value once surged over $700. You can checkout the graph below for more details:
What is Bitcoin Cash? A Basic Beginners Guide
Image Courtesy: Coin Market Cap.

So what is the driving force behind the value of bitcoin cash?

Reason #1:
More and more exchanges are agreeing to take up bitcoin cash. When it first started most exchanges were reluctant to take up BCH, but now more and more exchanges are accepting it. This, in turn, gives it credibility which increases its value.
The following are the wallets and exchanges which are supporting BCH:
What is Bitcoin Cash? A Basic Beginners Guide
Image courtesy: Coinsutra

Reason #2:
More and more miners are coming into it. As explained above, BCH currently is very lucrative for miners and many of them are coming in and giving their hashing power which in turn increases its value. At the same time, since the block size is 8 MB as well, it will enable more transactions within the block which will generate more transaction fees for the miners.

What is the future of Bitcoin Cash?

In short, we don’t know. We have no idea how bitcoin cash is going to turn out in the future nor do we know the long term repercussions that it will have on BTC. What we do know is that this is the first time that anyone has successfully hardforked from BTC whilst keeping the records of the existing transactions. What we have here is a very interesting experiment which will teach us a lot of lessons moving forward. At the same time, the 8 mb block size is definitely a very alluring aspect and it remains to be seen how this affects the miners in the long run. Can this really address all the scalability issues? Can BCH ever overtake BTC and become the primary chain? All these questions are mere speculations for now. What we can say for sure is that we have a very interesting future ahead.