Bitcoin Is Forking, But Bitcoin Cash Hasn't Been Created Yet

A planned split of the bitcoin blockchain began on schedule on Tuesday, but at press time, no new blockchain had been created as a result.

AccessTimeIconAug 1, 2017 at 2:34 p.m. UTC
Updated Sep 13, 2021 at 6:47 a.m. UTC

The split of the bitcoin blockchain has begun.

Earlier today a subset of bitcoin's miners began operating a different software in order to create a competing cryptocurrency called Bitcoin Cash. The move would effectively find a minority of users forging ahead with their own blockchain, one that shares a transaction history with bitcoin.

As previously reported, Bitcoin Cash – which raises the size of the network's transaction blocks while doing away with other capacity upgrades – is being advanced as an alternative to existing scaling efforts. Some of those who backed prior efforts aimed at raising the block size have since moved to support Bitcoin Cash.

Yet the split is far from complete.

The divergence started at approximately 12:37 p.m. UTC, according to data from BTCForkMonitor.info, when the network reached block 478,558. It's here that Bitcoin Cash needs to process a block that is greater than 1 megabyte (MB) in size in order to seal the split.

Thus far, that hasn't happened, and some observers believe that it could take hours or more for that block to be created. In the meantime, the original bitcoin chain has continued, reaching block 478,570 as of press time.

Also possible is that, should no new blocks be found, Bitcoin Cash could be abandoned. So far, a major mining pool for the currency has attracted more than 1 petahash of mining power.

Market impact

Bitcoin markets, which rose to a high of $2,925.03 during today's trading according to the CoinDesk Bitcoin Price Index (BPI), are currently trading at around $2,732, representing a decline of about 4.9 percent.

Traders had been preparing for the looming split, though in most cases, the prospect of receiving what is an effectively a doubling of coins – brought about as a result of the two networks sharing a transaction history as well as an identical key structure – was mostly seen as a benefit.

Futures for Bitcoin Cash (BCC or BCH), which have been listed by the mining pool and project proponent ViaBTC, are currently trading for roughly $384, according to CoinMarketCap.com

Saw image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
NFT Platforms Should Be Caught by EU Money-Laundering Overhaul, Lawmakers Say

Unhosted wallets and decentralized finance were left largely unscathed by two landmark crypto laws agreed to last week, but left-wing lawmakers may seek another go as they discuss dirty-money rules.

CoinDesk - Unknown
2
CoinDesk - Unknown
Bitcoin se recupera y supera los $19K; Nomura advierte de una recesión en EE. UU. y Reino Unido

Nomura escribió acerca de una recesión en la eurozona, el Reino Unido y Asia Pacífico, lo que podría influir en los precios de las criptomonedas.

CoinDesk - Unknown
3
CoinDesk - Unknown
Argentinos se refugian en stablecoins durante el fin de semana tras dimisión del ministro de Economía

Los principales exchanges del país informaron que los usuarios compraron hasta tres veces más criptomonedas estables que durante un fin de semana normal, en medio una crisis económica en ciernes.

CoinDesk - Unknown
4
CoinDesk - Unknown
Polkadot Builder Parity Technologies Adds 3 Execs to Leadership Team

The new executives joining Parity are Eran Barak (COO), Peter Ruchatz (CMO) and Fahmi Syed (CFO)

CoinDesk - Unknown