What’s happening with Bitcoin today?
The Bitcoin community have pulled together to approve the cryptocurrency’s software upgrade.
What’s all the fuss about?
Bitcoin is about to embark on a pivotal moment, where the network will create ‘Bitcoin Cash’ – a new cryptocurrency that will increase the block size and increase the speed of transactions.
Why does Bitcoin have to split?
As the price of Bitcoin soared in 2017, capacity has dwindled.
Bitcoin’s primary objective is to move data from a to b, but the digital asset is weighed down by the increase in transactions. Thus, users have decided to split or ‘fork’ the original asset – to develop ‘Bitcoin Cash’.
What is a fork?
A hard fork is a permanent breakup of the blockchain.
Some ‘nodes’ (full clients, who own the blockchain) will switch to the new client, while others will not. Essentially, the move is like a window’s upgrade on your computer, some will opt for the upgrade and others will not.
Although the original Bitcoin will retain much of the computer (hash) power and expand at a faster rate, the result will be two blockchains.
How will the split help?
The effort will increase the block size to 8 MB, thus transactions can speed up!
The upgrade will support multiple implementations of its software – a big criticism among users is the dominant role Bitcoin’s software plays on the network.