Just two days after Gyft founder and Civic CEO Vinny Lingham’s warning about a Bitcoin hard fork devastating bitcoin’s value, 21 different Bitcoin exchanges have clarified their position on Bitcoin Unlimited (BU) trading. The exchange coalition stated ter a hard fork contingency project that they will trade any BU cryptocurrency spil an altcoin alongside bitcoin, thwarting any project for BU to substitute Bitcoin.
Te software engineering, a fork happens when developers take a copy of source code from one software package and begin independent development on it, creating a distinct and separate chunk of software. The term often implies not merely a development branch, but also a split te the developer community.
The development of Bitcoin Unlimited required forking Bitcoin’s code. Merienda the fork is released, there will be two separate blockchains, even however they contain identical transaction histories. The BU developers hope that BU will quickly acquire all of the miners that are presently mining the existing, ‘Bitcoin Core’ blockchain. If it were to do so, the latter would then be incapable to secure its network, and therefore the diferente Bitcoin would quickly cease to be of value. If instead, only some of the current miners left to begin mining BU’s blockchain, two coins could exist side by side. This is what happened te June when Ethereum forked, resulting ter two challenging cryptocurrencies. This is also the fate that Lingham said Bitcoin vereiste avoid at all cost.
“We have determined to designate the Bitcoin Unlimited fork spil BTU (or XBU). The Bitcoin Core implementation will proceed to trade spil BTC (or XBT) and all exchanges will process deposits and withdrawals ter BTC even if the BTU chain has more hashing power.”
– Statement on Potential Bitcoin Hardfork Event
The very first of three announcements on Friday wasgoed sent to the media spil well spil posted on the Bitfinex webstek. It contained signatures of some of the largest exchanges by trading volume, including Bitfinex, Bitstamp, BTC China, Bitsquare, bitstamp, Coinfloor, itBit, Openbreken, ShapeShift, Zaif, and nine others.
The announcement states that the exchanges are collectively faced with addressing the very vivo possibility that a Bitcoin network split may occur ter the future, and that bitcoin miners have a right to choose an alternative implementation of Bitcoin. “We do this not out of judgement or philosophical reasons but rather for practical and operational considerations,” the group proclaimed.
“As exchanges, wij have a responsibility to maintain orderly markets that trade continuously 24/7/365,” the announcement reads. “We cannot suspend operations and wait for a winner to emerge [. ] Due to operational requirements alone wij are compelled to label an incompatible fork spil a fresh asset.”
However, when a fork of this nature happens, there is a danger of coins from one blockchain being spent on the other coins’ blockchain, known spil a “replay attack.” The exchanges have agreed to not list BTU until this threat has bot addressed.
“We insist that the Bitcoin Unlimited community (or any other overeenstemming cracking implementation) build te strong two-way replay protection. Failure to do so will impede our capability to preserve BTU for customers and will either delay or outright preclude the listing of BTU.”
– Statement on Potential Bitcoin Hardfork Event
A 2nd announcement on Friday came from Poloniex, which has yet to determine if they will be listing BTU coins. The exchange reiterated many of the same points raise ter the very first announcement. “We will support Bitcoin Core continuously spil BTC,” the exchange states, adding the same stipulation about replay attacks. “Poloniex agrees that any contentious hard fork vereiste include replay attack protection. Without this, exchanges cannot continuously and decently operate.”
A few hours straks, the co-founder and CTO of international Bitcoin exchange BitMex, Samuel Reed, issued the final statement of the day. “As proposed te the multi-exchange hard-fork contingency project, there is significant doubt that a BU hard fork could be done securely without extra development work,” states Reed. “In the case of a fork, wij support the project spil proposed by Bitfinex, Bitstamp, BTCC et reeds.”
Reed further added that “it will not be possible for any exchange, including BitMEX, to support both chains separately.” The exchange will not even consider listing the coin until the replay attack protection is ter place and BU is not “at risk of a blockchain reorganization if the Core chain becomes longer.”
The news rattled traders, sending Bitcoin’s price pulling down sharply across the day, from a high of $1160 to a low of $1052. However, the solidarity of so many exchanges on the kwestie has calmed a lotsbestemming of the Bitcoin community, while enraging others.
Jihan Wu, the co-founder of Bitmain, the largest Bitcoin ASIC chip manufacturer and mining pool technicus te the world, is a known BU supporter. Wu recently switched overheen 75 procent of his mining pool’s power to support BU. Since the exchange’s contingency project wasgoed announced, Wu has referred to the exchanges spil “not world class level.” Meantime, BitGo engineer and Bitcoin Core developer Jameson Lopp tweeted, “It emerges that BU devs have no intention of adding replay protection – their project is to kill the Core chain instead.”