Ethereum: What happens to the coins after the Bitcoin Cash Fork?
On August 1, 2020, the second largest cryptocurrency in the world by market capitalization, Ethereum (ETH), will take sides in two separate blockchains: Ethereum Classic (etc) and Bitcoin Cash (BCC). This decision aims to provide a safer, decentralized and censorship resistant blockchain for users who wish to maintain their existing investment in ETH.
Background
Ethereum is not a cryptocurrency; It is a decentralized application platform that allows developers to create intelligent contracts and decentralized applications (APPS) on its blockchain. The Ethereum network is the largest processing project distributed to the world, with over 70 million users and a market capitalization estimated at $ 500 billion at most.
Bitcoin Cash: a bitcoin fork
Bitcoin Cash (BCC) is a spin-off of the Bitcoin network, but has distinct differences compared to Bitcoin. The original Bitcoin protocol has been criticized for its elaboration times of slow transactions, high commissions and limited scalability. To deal with these problems, the developers created BCC, who aims to improve the speed, safety and usability of Bitcoin.
The fork: etc. VS. BCC
On August 1, 2020, the Ethereum community will take sides in two separate blockchains:
* Ethereum Classic (etc.) : This will be a full -speed blockchain with its scripting language, EVM (Ethereum virtual machine) and intelligent contractual functionality.
* Bitcoin Cash (BCC) : As mentioned above, this will be a light, fast and low -cost cryptocurrency with some differences from Bitcoin.
What happens to the coins after the fork?
The result of the fork will depend on the decisions of the individual investors. Here are some possible scenarios:
- ** Investors who wish etc. wallet.
- Bitcoin Cash Investors (BCC) : those who prefer BCC will lead their coins automatically when they move to the new blockchain. If you have already purchased BCC through a third -party exchange or service, your transaction will be reflected on both blockchain.
- New users : If you are not new for cryptocurrency investments, it may be necessary to explore alternative options and seek the characteristics, risks and potential returns of each coin.
Key differences between etc and bcc
To illustrate the main differences between etc and BCC:
* scalability : etc. It is designed for high traffic applications, while BCC is more suitable for light users.
* Security : etc. Use a hybrid trial system (POW), which combines traditional POW with SHA-256. BCC uses the light bip39 semi -bip39 system for seed -based portfolios and has improved the safety characteristics compared to Bitcoin.
* Transaction commissions : BCC is significantly cheaper than Bitcoin transaction commissions.
Conclusion
Ethereum in etc and BCC fork marks an important milestone in the evolution of decentralized finance (Defi) and the cryptocurrency space. While there are risks involved, many investors have successfully migrated their coins to etc. BCC. As with any investment decision, it is essential to do your research, understand the differences between etc and BCC and consider your individual financial objectives before making a move.
Disclaimer : This article is only for information purposes and should not be considered as investment advice. Always conduct in -depth research and consult experts before making any decision on cryptocurrency investments.
