Ethereum: What happens to coins after the Bitcoin Cash fork?
The world’s second largest cryptocurrency market value (Ethereum) is the second largest cryptocurrency, Ethereum (ETH), in two separate block chains: Ethereum Classic (etc.) and Bitcoin Cash (BCC). The purpose of this decision is to provide a safer, decentralized and censorship resistance to users who want to maintain their current investments in ETH.
Background
Ethereum is not cryptocurrency; It is a decentralized application platform that allows developers to create intelligent contracts and decentralized applications (DApp) in its blockchain. The Ethereum network is the largest decentralized computing project in the world, with over 70 million users and market rock data of approximately $ 500 billion.
Bitcoin Cash: Bitcoin fork
Bitcoin Cash (BCC) is a spin-off of the Bitcoin network, but has clear differences compared to Bitcoin. The original Bitcoin protocol has been criticized for slow transaction processing times, high taxes and limited scalability. To solve these problems, the developers created BCC, which aims to improve bitcoin speed, safety and ability.
Fork: etc. vs. BCC
The Ethereum community wins two separate block chains on 1 August 2020:
* Ethereum Classic (etc.) : This is Blockchain, which has perfect features, in its own manuscript language, EVM (Ethereum Virtual Machine) and the intelligent functionality of the contract.
* Bitcoin Cash (BCC) : As mentioned earlier, it is easy, fast and inexpensive cryptocurrency with some differences in bitcoin.
What happens to coins after a fork?
The result of the fork depends on the individual decisions of the investors. Here are some possible scenarios:
- ** Investors who want, etc. wallet.
- Bitcoin Cash (BCC) investors : Those who prefer to get coins when they meet a new Blockchain. If you have already purchased BCC’s third party exchange or service, the event will be reflected in both block chains.
- New Users : If you are new investments in your cryptocurrency, you may need to explore alternative options and explore potential features, risks and potential profits.
The main differences between ETC and BCC
To illustrate the main differences between ETC and BCC:
* Scalable : ETC is designed for high traffic applications, while BCC is better suited for light users.
* Safety
: ETC uses a work certificate (Pow) that connects with the traditional Pow with SHA-256. BCC uses a BIP39 seed system that is easy for seed -based wallets and has improved safety features compared to Bitcoin.
* Transaction fees : BCC is considerably cheaper than Bitcoin event fees.
conclusion
The Ethereum fork in ETC and BCC means an important step in the development of decentralized economy (Defi) and cryptocurrency. Although there are risks involved, many investors have successfully moved coins, etc. or BCC. As with any investment decision, it is necessary to do research, understand the differences between the ETC and BCC, and consider individual financial goals before moving.
Disclaimer : This article is for information purposes only and should not be considered an investment tip. Always carry out thorough research and consult experts before decision -making on cryptocurrency investments.