What an astonishing few hours. After years of infighting bitcoiners were united yesterday, with all celebrating an historical day when the currency showed its full power.
Big blockers and small blockers alike were super excited to see the first bigger than 1MB block, mined by ViaBTC, at exactly 19:13 London time.
Then more blocks came, with a mystery miner – probably BTC.TOP – bringing to life the newest and yet the oldest digital currency, while price went on a bull run.
They did what some said was impossible. They upgraded the bitcoin network in just one week when some said it takes years. They hardforked when some said hardforks “CANNOT happen.”
They collectively raised the middle finger to closed door meetings and paper agreements that tried to completely transform bitcoin into a boring outdated settlement system.
So holding the shining light of that simple, yet thorough, bitcoin whitepaper which can now once more proudly call bitcoin a peer-to-peer electronic cash system.
In the process, they’ve checkmated what some might call a social attack which aimed to completely transform bitcoin’s payment network.
They’ve checkmated because it is now the free market alone that decides, and there words are usually hallow. They’ve checkmated because all bitcoiners now have Bitcoin Cash and they won’t like seeing their asset being trashed by paid marketeers.
Not least because one Bitcoin Cash is now valued at $800, so any bitcoiner would like that value to increase and thus may reign in on the paid penny posters using negative marketing.
But the real checkmate is just what Bitcoin Cash offers that Bitcoin Core can’t in its transformational plans.
You can actually have as good as instant transactions on Bitcoin Cash through a process Nakamoto described in simple yet thorough terms.
This approach was used for many years in bitcoin by both Coinbase and BitPay with as good as no double spends of 0-confirmed transactions seen at that time.
Although it was possible because of Luke-Jr’s former pool, Eligus, which ideologically did not apply the first-seen rule, so you could double spend with a 50% or less chance of success by sending your transaction to Eligus.
Few did because even there the chances were bad. But then the Replace by Fee (RBF) bug was implemented into the Bitcoin Core client, allowing anyone to double spend by just sending the same transaction with a higher fee, so defeating the complete purpose of bitcoin which is to make double spends as good as impossible.
Double spends can of course still happen, but like with any system, absolute certainty isn’t a luxury to be enjoyed in this life. The first-sen approach towards 0-confirmed transactions worked perfectly well and will now continue to work on Bitcoin Cash.
The second feature of BCC/BCH – although technically neither is a real ticker as it should be called XBC – is as good as free transactions.
Bitcoin used to have fully free transactions if the coins were sufficiently old. While most other transactions were charged pennies or less to move.
Bitcoin Core removed the fully free transactions, in the process freezing many bitcoins scattered in wallets with small amounts of $10 or less once the fees reached $7 at Kraken.
That made bitcoin unusable for many, with its payment system in effect in-operational which was and remains the goal of Bitcoin Core as they want to segregate the payment network from the currency/asset.
In their view, no one but bitbanks should transact on-chain with everyone using the bitbanks which to many makes bitcoin uninteresting.
Hence, they’ve decided to hardfork from Bitcoin Core and keep bitcoin running as it always has, with the focus on both bitcoin as gold and bitcoin as cash, bitcoin as a payment system and bitcoin as a currency or asset.
It is that combination of all which makes it so fascinating, a combination they think could provide a real alternative to both inflation crippled Venezuelans and hedge investors.
A combination that allows everyone to be their own bank or use a bank if they please, to transact in a peer-to-peer manner or use second layers like the Lightning Network if they like.
In contrast to Bitcoin Core, Bitcoin Cash believes in the freedom of choice and in the power of the free market. Abhors any centralized committees or developers cliques. Trusts the people and the 51%.
As such, the price action today that has sent Bitcoin Cash to $800, the strong support among the ecosystem, including the hashpower backing XBC in much higher than expected levels yesterday, and the fact that Bitcoin Cash ignites real passion among many, may suggest the currency has a real chance of becoming the dominant bitcoin.