Bitcoin Cash’s (BCH) One Year Anniversary: How Has it Fared?

  • Today is Bitcoin Cash’s (BCH) one year anniversary, but recent research shows that its network may be prone to transaction malleability.
  • There are reportedly only 716 merchants who accept BCH, compared to well over 100,000 merchants who accept Bitcoin (BTC)

Today is Bitcoin Cash’s (BCH) one year anniversary. Created exactly 1 year ago on August 1st, 2017 through a fork off of the Bitcoin (BTC) blockchain - it is by no means the only bitcoin fork. 

In fact, there are well over 40 Bitcoin forks out there, however, Bitcoin Cash is the first and most dominant of them all based on its current market capitalization of over $13.2 billion, according to data from CryptoCompare.

Compared to BCH, other BTC forks such as Bitcoin Diamond (BCD) and Bitcoin Gold (BTG) have not had nearly as much impact on the cryptocurrency market. On the other hand, Bitcoin Cash has captured the interest of a fairly large number of crypto devotees.

The Roger Ver-backed Bitcoin fork, however, has been accused by many of misleading crypto investors and traders, particularly the newcomers, because it is often promoted or talked about in a way that perhaps intentionally creates confusion between BTC and BCH.

Satoshi’s “True” Vision

Ver, who was an early cryptocurrency adopter and Purse.io investor, has used his Twitter account over the past the year to constantly criticize bitcoin’s slow transaction processing times and other challenges the flagship cryptocurrency has faced since it was created. Meanwhile, he has continuously praised Bitcoin Cash (BCH) and claims it’s “the real bitcoin.”

Many BCH supporters, including Ver and Civic.com CEO Vinny Lingham, argue that BCH has been implemented according to how Satoshi Nakamoto, the pseudonymous inventor of Bitcoin, had envisioned it and how he had described it in his whitepaper. Bitcoin cash supporters also claim that BTC’s ongoing development has moved away from how Satoshi had wanted it to be.

Despite this controversial narrative, a recent research report shows that, “there is a declining incentive for miners to secure the minority [Bitcoin Cash] BCH network”, as reported by Crypto Globe on July 24th. Moreover, a number of crypto enthusiasts believe that BCH investors may face huge losses in the foreseeable future.

BCH Network May Be Vulnerable

The main argument, as presented by Dr. Wassim Alsindi, Director of Research at Parallel Industries, as to why Bitcoin Cash may be a vulnerable platform is that there’s currently no reliable protection on the BCH network against bad actors potentially manipulating transactions on its blockchain. Alsindi’s research notes that Bitcoin Cash may be insecure because it did not adopt SegWit.

Instead of incorporating SegWit, the Bitcoin Cash community decided to increase block sizes even more from its previous 8 MB to 32 MB via a hard fork on May 15th, 2018. The reason for increasing block sizes, given by the BCH community, was that it would not only allow for more transactions to be processed per block, but also result in lower transaction fees.

Bigger Block Sizes Not Necessarily Better

But bigger blocks may not necessarily be better, as security experts have noted that cryptocurrency platforms with large blocks require the full-node operators (or validators) to download more data before they can verify transactions. This can become quite challenging and even result in the platform’s blockchain ultimately becoming more insecure.

Moreover, many developers think that the better way to address scalability issues is to create sidechains, which can help to handle a lot of the processing load of the main blockchain on cryptocurrency networks. This is also the direction that the ongoing development and upgrades to the Bitcoin (BTC) blockchain appear to  be heading toward.

Only 716 Merchants Accept Bitcoin Cash (BCH)

Getting back to Bitcoin Cash, how does it measure up otherwise in terms of daily transactions per day and rate of adoption? Currently, there are about 20,000 BCH transactions per day, which is up significantly from the 5,000-10,000 daily transactions during the first few months of its existence.

In comparison, there are between 200,000-400,000 daily BTC transactions, which clearly indicates that its usage is much higher than that of BCH. Also, in 2015, it was widely reported that there were over 100,000 merchants who had been accepting Bitcoin (BTC). Given that Bitcoin and the crypto market in general is significantly more prevalent today, the number of merchants accept BTC may be a lot higher.   

Meanwhile, Bitcoin.com, a website that has been known to create brand confusion between the flagship cryptocurrency and Bitcoin Cash, claims that more than 10,000 merchants accept BCH.

This appears to be a bit of an exaggeration, however as acceptbitcoin.cash reports that there are only 716 merchants accept Bitcoin Cash.

Huobi Wallet Adds Support for Decentralized Finance Apps MakerDAO and Compound

Francisco Memoria

Huobi’s multi-currency wallet, Huobi Wallet, has added support for two decentralized finance (DeFI) projects – Compound and MakerDAO – in an expansion into the ecosystem.

According to a press release shared with CryptoGlobe, Huobi Wallet will now be supporting all decentralized applications and tokens associated with these projects, which are mainly focused on the Ethereum blockchain.

The document notes the Maker project is comprised of a decentralized stablecoin – Dai – collateral loans, and community governance. Huobi’s multi-currency wallet supports the stablecoin, as well as its MKR token and CDP Portal which lets users take collateralized debt positions.

MakerDAO, Maker’s decentralized portal, is fully managed by smart contracts. The project has created a lot of buzz in the cryptocurrency space over the popularity of its Dai stablecoin, which has been listed on various major exchanges.

Compound, on the other hand, is an open-source autonomous protocol allowing users to lend cryptocurrency and earn interest on their holdings, or borrow on the platform at a specific rate. Huobi Wallet’s support meaning users will be able to use the Compound decentralized application directly from the wallet.

Livio Weng, Huobi’s chief executive, was quoted as saying:

We think blockchain technology has great potential not just for cryptocurrency but also in providing better overall financial services and products to the public. Both Compound and MakerDAO share our vision and we're happy to add support for them.

Compound’s founder and CEO, Robert Leshner, added that decentralized financial applications will “lead to a wealthier, more connected world,” but have so far been difficult to access. Per his words, this type of partnership will help more users access DeFi platforms.

The move comes shortly after Huobi Wallet partnered with Equiilibrium, the framework behind an EOS-based stablecoin called EOSDT, to add the cryptocurrency to the multi-currency wallet.