The Bitcoin Cash (BCH) blockchain has completed an upgrade that has resulted in what is known as a “hard fork,” which creates two separate cryptocurrencies. For individuals who own BCH, this has implications that you should be aware of. In this article, we’ll give you a quick summary of what is happening with BCH, what a “hard fork” is, and what this means for you if you own BCH through Metal Pay.
What is happening to BCH?
As is the case with most cryptocurrencies, Bitcoin Cash has reached a point where a network upgrade is needed in order for the cryptocurrency to remain functional, adaptive, and secure. The development teams that build on Bitcoin Cash were unable to reach a universal consensus of what the structure of the cryptocurrency and its tokenomics should be after this upgrade. As a result, Bitcoin Cash has transformed into two separate cryptocurrencies: BCHN and BCHA.
The team behind the BCHN version proposed that the upgrade to Bitcoin Cash’s network include a new mining strategy. The team behind the BCHA version proposed that the upgrade also include a new protocol that sets aside 8% of the block rewards to be paid to the development team. Neither of these strategies are unheard of in the cryptocurrency industry, but the discrepancy between them was too great to reach a compromise, resulting in a hard fork of the BCH blockchain.
It appears that the vast majority of mining activity for the BCHA chain has ceased, resulting in the BCHN chain becoming the apparent dominant chain in this network. As a result, the BCHN chain is expected to retain the BCH ticker on most cryptocurrency platforms.
What is a hard fork?
To understand the term “hard fork,” imagine a fork in a road, not the eating utensil. A hard fork occurs when developers of a cryptocurrency are not able to reach a consensus as to what the structure of a cryptocurrency should be moving forward. Sometimes, debates are shelved for a later update; other times, developers who disagree with the direction of a cryptocurrency may leave the project entirely. In the case of the Bitcoin Cash network, developers disagreed sharply enough, but were also still committed to the Bitcoin Cash project, that a hard fork became the only viable outcome – meaning each team would develop their own version of the Bitcoin Cash project.
The cryptocurrency industry as a whole is paying close attention to what is happening with Bitcoin Cash. Most exchanges have temporarily halted the support of the Bitcoin Cash network during this upgrade.
What will happen with Bitcoin Cash on Metal Pay and Metal X?
The Bitcoin Cash community (including users and miners) has decided that the BCHN chain was the preferable direction for Bitcoin Cash. As a result of this majority support, the BCHN chain will retain the BCH ticker on Metal Pay and Metal X; users who had a BCH balance with Metal Pay or Metal X prior to this hard fork will still have the same amount of BCH after the hard fork.
Users who have questions or concerns about this are encouraged to contact our Support Team to receive direct assistance. Metal will continue to monitor the progress of the Bitcoin Cash network upgrade and will update our users regarding this situation as needed.
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