The Bitcoin Cash (Bcash) Fork - Damaged Reliability And Additional Risk - Improvements Very Limited

in bitcoincash •  4 months ago

Yesterday the hard fork of Bcash took place whereby the maximal block size was increased from 8 to 32 MB and old Bitcoin opcodes were re-introduced. The fork kicked 19% of the nodes off the Bcash network and 17% is still offline. This means that 17% of the users is not able to transact with Bcash at the moment, a big hit for the reliability of BCH as a store of value and medium of exchange as well.

This is exactly the reason why core devs never want to use hard forks to update the network except in an emergency situation. After years of calling the core devs arrogant, slow and even compromised, Bcash proponents can now see that there are good reasons behind it. This is the 3rd Bcash hard fork and two of them didn’t go smoothly (remember the EDA that caused hyperinflation followed by extremely slow transactions?).

Meanwhile BTC is up and running for almost ten years without mayor problems because the devs are conservative and responsible, and amazing scaling tech is being Rolled out as we speak.

I wrote about this subject before the fork:
https://steemit.com/bitcoin/@michiel/bitcoin-btc-vs-bcash-bch-a-closer-look-at-the-transactions-decide-yourself

Bcash big blocks.png
https://twitter.com/btc_manager?lang=en

Was the update of Bcash necessary?

The opcodes implemented in Bcash were removed from BTC because of security reasons. Very serious bugs were found (read here more about it) and there is a fair chance that there are additional hidden bugs too. Since the hard fork yesterday the possibility of a security breach or network failure is greatly increased through these opcodes.

Screen Shot 2018-05-17 at 21.19.31.png
Wow, an update or a time bomb?

The block size increase was simply not necessary at all. The maximum block size might be big, but the actual block size is just over 50 KB, Bcash seems to be not so popular to transact with. This means that they can only fill up 5% of the block space when they would never have increased the block size and still had 1MB blocks like BTC.

Blocks.png

They are only able to fill up 0.625% of the 8MB blocks as they had before the recent hard fork and since they have 32 MB blocks they use only 0.208% of the maximum block space!

blocksize btc vs bch.png
Bitcoin still has by far the biggest actual blocks. Especially when you consider that Bitcoin transactions are way more efficient through Segwit and batching (read here more).

Unnecessary and harmful

The fork was not only very unnecessary, but did harm the network too. Nodes spit off and users are not able to make transactions. This is hilarious, because reliability is one of the (false) selling points of Bcash. As you can see many nodes are still offline and it doesn’t look like they come back online fast, only 2% managed to return within the first day.

Bcash nodes offline.png

Conclusion:

I think this fork was solely designed to create hype and pump (and dump) the Bcash price. The updates were not needed and make the network even less reliable and secure. Furthermore, there was no innovation involved at all, a block size increase can be coded by a child and the opcodes are simply copied / pasted from old Bitcoin code.

Since the track record of Bcash is that 2 out of 3 forks don’t go smoothly and there are giant risks in the base code now, I would strongly advise to dump all of your Bcash now before it is too late.

Bitconnect kept rising and brought great returns for over a year…….

Until it didn’t

Bcash could rise and give great returns for over a year……..

Until it doesn’t

Disclaimer
This is no financial advice, just my view on the market.

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The Bitcoin Cash network was scheduled to upgrade the consensus rules on May 15th, 2018. Their development community performs periodic network upgrades to evolve the network to keep up with their competitive advantage. The upgrade to the consensus rules will raise BCH’s blocksize fourfold from 8 MB to 32 MB and will activate and re-initiate a series of Bitcoin script operation codes.

Additional capacity is always good, to ensure low transaction fees.

As a result, median transaction fees for Bitcoin BTC are now 20-200 times more expensive than for Bitcoin Cash.

Median Transaction Fees:

btw, Bitpay is the #1 payment processor.

So when you're buying something from a Bitpay-enabled merchant (like NewEgg.com, PrivateInternetAccess.com, NameCheap.com, Apmex.com, etc), you should choose the lowest transaction fee in front of you.

And that would be Bitcoin Cash.

·

So if a coin like Iota and Nano were on Bitpay because they clearly state they plan on adding more coins, I guess both won't be necessary

Great article. I’m in total agreement that this upgrade was unneccesary, furthermore Bcash’s entire existence is unneccesary. The whole network’s existence is an attack on Bitcoin

Verryy good

While big blocks are ok, how much will they just increase blocks. I guess because full nodes aren't important-it doesn't matter if you can run the nodes. Miners will just run it for you. Remember if bitcoin(cash) become like paypal-roger ver won't mind it and just say to create a new coin. https://coinjournal.net/roger-ver-paypal-acceptable-risk-bitcoin/
Funny thing is why does Bch make fun of LN? Many of the big supporters promote LN on Bch but the users don't like the LN? Honestly I don't dislike Bch-it just their dumb marketing and I guess i will be shiller with them. Won't ever use them-big block are not for me.

yes here his investment is very safe, and his bitcoin will be a new history for extraordinary investment.

Great post! Resteemed. I agree forking should be for emergencies when a block gets corrupted or there is an error.

Very distinctive updates
Thank you for the great effort and the great update

Totaly agree. Although I am not personally affected by this fork from what I learned it caused confusion and uncertainty. But I am sure that Roger Ver will find some excuse to justify this fork.

Why not That bugs created before.a bit of confusing.

Bcrash

I'm just waiting too see what will happened to the nodes if we start seeing 32mb blocks consistently as they usually need 8x this in bandwidth, as it stands it's not the block size that’s knocking nodes offline but it's the dev themselves making stupid change when like you said

They are only able to fill up 0.625% of the 8MB blocks

Fantastic post friend congratulations

Thanks for the update even though i found it hard to understand some part of it but the message was well received.

I use to preach back when bitcoin cash forked from bitcoin, I told everyone the major difference was the 32M block size. yes its great that size of the block is big. I think community is the major selling point in the crypto space. Bitcoin has a larger community. I do see a future for BCC but maybe it will be big 3-5 years from now. if no other coins that comes up.

·

I certainly hope BCC can get it together. It is currently the only coin I've lost money investing into.... that being said, I'm holding long term.

Its coins like Bcash that make the entire echo system shady, I just want to HODL and hibernate, these are shark infested waters and Ver, CSW and Jihan will take a bit out of anyone to make money. Bitcoin was supposed to be a libertarian movement and not Crypto is just filled with scum and its hard to recommend it to anyone because you don't want them to get scammed by assholes like these. GREED is the root of all evil.

WEEKLY UPDATE- BBC, DITCH-IT, INSTANT PAYMENTS AND MORE!

Hi all, welcome to our weekly update where we discuss the interesting stories happening in and around Electroneum.

This week we’ve seen a few tech updates regarding the mobile miner and have featured on the BBC.

Electroneum has been featured on the BBC.

BBC radio recently put together a documentary on ‘Magical Money’, discussing ICO’s and cryptocurrencies in full. Log in and skip to 17:53-20:55 in this great radio interview to catch Richard Ells talk ETN with the BBC’s technology Correspondent: Rory Cellan Jones. Rich talks mass adoption into “mom & pop stores” and how Electroneum has all the agreements in place to gain ETN millions of users. We’ve already passed the 1.3m user mark on viral growth alone. We hope you enjoy this little snippet of our incredible trip to MWC GSMA Barcelona: https://www.bbc.co.uk/programmes/w3csxg99

Ditch-It- powered by Electroneum.

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Instant Payments

We have just agreed a date with a documentary film crew, who will be visiting our office on the 8th June 2018 to see our instant payment system in action! This will be on our testnet but shows how close we are to giving users and vendors access to a truly instantaneous exchange of funds, complete with an API to allow Ecommerce integration etc.

Mobile miner payments.

Our developers have been looking into the issues regarding the mobile miner and we are pleased to announce that the majority of individuals with a balance above 200 ETN will have now received their Miner pay-out. Furthermore, balances of 100 ETN or more are currently being processed and should be in your wallets as soon as the processing phase has finished. We apologise for any inconveniences and as always we appreciate your feedback and support.

Please remember that we are deliberately stressing our mobile miner payout system, because we know that it will need to cope with millions of mobile miners. Once we have got it running smoothly at this level (and we are nearly there!), we can increase the payout threshold and the number of concurrent payouts and know we have a system that can cope with future demand.

We hope you have a wonderful weekend and look forward to catching up with you next week.

The Electroneum Team.

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regards,
Tomas