At Blockchain, we are focused on creating products that empower you to have ultimate control and flexibility in managing your money. Blockchain wallets are non-custodial and you hold the private keys, meaning you always have full, exclusive access to your funds — which are always accessible with your recovery phrase. In short, we enable you to Be Your Own Bank.
We’ve received questions about the Bitcoin Cash Fork (known as BCC) that is scheduled to activate on August 1st and how it will impact individual users. Our top priority is the safety of customer funds. Though we are actively monitoring network conditions and will do everything we can to minimize the impact on you, it may be necessary to temporarily cease broadcasting transactions for a short period of time. If it is, we will let you know.
If you have a Blockchain wallet, it is essential that you retain your wallet and corresponding recovery phrase and not delete them, even if you empty the BTC balance. Also if you are considering withdrawing funds from exchanges that will not support BCC, it is safe to withdraw to your Blockchain wallet.
In the event of two separate blockchains after August 1, 2017 we will support the longest chain. As of today, we have no immediate plans to fully support the Bitcoin Cash fork within our main product. But, if BCC develops into an actual chain and market, you will be able to use your recovery phrase to export your funds and use them on that chain, regardless of whether or not Blockchain chooses to support it.
Everyday you can choose what to do with the bitcoins in your Blockchain wallet. While no immediate action is required, the current network changes serve as a helpful reminder to have your recovery phrase written down if you haven’t already.
The start of the Bitcoin ABC (Bitcoin Cash) chain split has begun as the divide was initiated on August 1 at 12:37 p.m. UTC at block height 478558.
Bitcoin Cash Veers Off at Block Height 478558
Over the past week, the central theme of discussion has been the August 1 hard fork and the possible birth of a new token called ‘Bitcoin Cash’ (BCC). The fork has come about after months of long debates, scaling proposals, and community infighting and many bitcoin proponents from both sides are showing a sense of relief although some are still uncertain of the events that will take place, and how the bifurcation of the Bitcoin blockchain will play out.
Today a whole lot of people have been patiently waiting for the user-activated hard fork (UAHF) to commence and the coming of the new digital currency Bitcoin Cash. August 1 has arrived and the 12:20 UTC time period has officially passed. The start of the BCC chain split began at block 478558, but at the time of writing the official divide has not yet occurred.
Places to ‘Watch’ the Fork Unfold
Now the fork didn’t happen at exactly 12:20 UTC but took place six blocks later. There are a few places where bitcoin proponents can follow the behind the scenes action and watch for BCC blocks to be found at data collection sites like Coin Dance, Blockchair, and BTCforkmonitor. Further, there is a live stream “fork party” called Countdown to Bitcoin Cash with over 1400 viewers at press time. And of course, the Reddit forums r/btc, r/bitcoin, and Twitter are filled with discussions concerning today’s events.
BTC and BCC Markets
Yesterday bitcoin markets were very active, and bulls managed to push the price up to $2929 just twelve hours before the possible fork. Now the price is down 8 percent to a low of $2700 as people sit and wait for the fork’s outcome to commence. Many traders believe the BTC price spike is currently valued with the BCC token’s value priced into it, but market predictions are very speculative. At the moment BCC futures are trading at 0.15 BTC or US$400 after seeing a decline in value over the past week. The San Francisco -based bitcoin exchange Kraken has announced it would begin crediting Bitcoin Cash shortly and trading has begun on the platform. Bitcoin Cash prices on Kraken are similar to Viabtc’s futures at the time of writing.
At the moment bitcoin proponents are glued to their screens waiting for the next course of action regarding the August 1 split. Block 478558 was the last common block found and the next event will be the first Bitcoin Cash big block found which could take some time depending on hashrate.
UPDATE: The original title of this post first indicated that the first Bitcoin Cash block had been mined, but that wasn’t entirely accurate. The post has since been updated.
How are you watching today’s events? Let us know in the comments below.
On July 31 the bitcoin exchange BTC-e sent a message over Twitter and on the forum Bitcointalk concerning the company’s recent website seizure by U.S. law enforcement. Additionally, the statement claims that Alexander Vinnik was not the head operator of BTC-e and further states the detained Russian was never an employee.
BTC-e Reveals Information on FBI Takedown
Bitcoin.com recently reported on the recent takedown of the exchange BTC-e and the arrest of its alleged operator Alexander Vinnik. According to U.S. law enforcement Vinnik operated the trading platform and laundered $4B worth of bitcoins tethered to illicit activities since 2011. The exchange domain was seized following the arrest of Vinnik by six law enforcement agencies working on the investigation, and now many innocent BTC-e traders are concerned about their holdings. Then on Monday someone who had access to the company’s Twitter handle and Bitcointalk account sent out a message to the public.
“On July 25, FBI staff came to the data center where our server equipment was located and seized all of the equipment, the servers that contained databases and the purses of our service,” explains the translated BTC-e message on the Bitcointalk forum. “For almost six days now we could not get sane information from our hosting provider on what happened to our servers and because of this information we publish now.”
The Exchange Claims it Will Process Refunds Soon
BTC-e also states that other employees servicing the facility were also taken into custody by the FBI. Moreover, the trading platform says it will soon be revealing how it might be able to come back online and start a refund process.
“The next update will include information on what options are available to restore the service, and also the procedure for obtaining funds, in the event that the service is not started. In the current situation, if the service is not started before the end of August, then from September 1 we will start the process for refunds.”
In the next 1-2 weeks, we will evaluate and publish information about how much money fell into the hands of the FBI and what amount of funds is available for return.
The exchange explains that the company has always worked on trust and “funds will be returned to everyone.” After the company provides some refund assurance, the exchange details that Alexander Vinnik was not an employee nor the head of the organization. The company’s statement also reveals that BTC-e will be answering questions in the Bitcointalk thread. However, there are no other statements from BTC-e within the thread or on Twitter at the time of writing.
Spectators Still Unsure of BTC-e’s Latest Statements
Many bitcoin proponents are uncertain of the legitimacy of BTC-e’s recent statements and especially the claim that Vinnik was not involved with the company. One reason people are skeptical is because of the recent Wizsec article detailing Vinnik’s alleged participation in many crimes. The bitcoin security specialists say “Vinnik is our chief suspect for involvement in the Mt Gox theft” and further ties him to BTC-e accounts. Wizsec says they will be releasing more information on the matter in the near future.
For now, BTC-e customers and spectators will just have to wait for more information to come to light either from the exchange itself, U.S. law enforcement, or blockchain forensic experts like Wizsec.
What do you think about BTC-e’s recent statements? Let us know in the comments below.
On July 22, 2017, at approximately 04:46:31 UTC at block height 477120 — BIP91 was activated on the Bitcoin network. As of this point, if the Segwit2x plan is successful, blocks that don’t signal Segregated Witness (BIP141) will be rejected.
Segwit2x Progresses Forward
BIP91 has activated on the Bitcoin network after it was enforced by a collaborative effort of mining pools. Over the course of the past 24-hours, nearly every block on the network has been signaling for the protocol change. The threshold for Segwit activation is 80 percent of the network, and 88.2 percent has shown signaling support in the last 24 hours.
The past two and half days have allowed miners time to upgrade their nodes, as from now on every block not signaling Segwit (bit-1) should be rejected. If all goes well and everybody is on board with Segwit (bit-1) blocks, then it will ensure Segwit’s lock-in period. All of these signaling phases make sure everyone agrees, and the next chapter of consensus commences. Roughly around the end of August, the Segwit protocol will be officially implemented and active on the Bitcoin network.
Many community members seem pleased with the Segwit2x progress so far, while others are very doubtful – showing lots of skepticism in forum discussions. Both small blockers and big blockers are still fighting. Further on social media, many bitcoin-business executives, developers, and luminaries are still showing contempt for those disagreeing with their subjective valuations. There’s a lot of narratives to follow with people talking about blockchain re-orgs, replay protection, the user-activated hard fork (Bitcoin Cash), exchange contingency plans, and the biggest of all: whether or not the network will upgrade to 2MB this November.
The User-Activated Hard Fork (Bitcoin Cash)
There are those with the opinion that the user activated hard fork (Bitcoin Cash/BCC) will happen regardless of the Segwit2x working groups progress. There are many bitcoiners discussing this scenario and a recent Medium post written by Juan Manini-Rios goes into great detail about the subject.
“Segwit2X locked-in on July 21st with +90% miner support so many people could now be tempted to assume that the scaling debate is over and Bitcoin is now good to scale to the masses,” explains Manini-Rios.
Unfortunately, that is not the case at all, and a Bitcoin fork is still almost certain.
Manini-Rios says even though people believe the UAHF was just a contingency plan against the user-activated soft fork (UASF), it still will happen. Bitcoin Cash developers have recently added a ‘slow’ mining difficulty reduction algorithm if they don’t get many miners to back the minority branch. Further, it seems Bitcoin Unlimited, Classic, and ABC will be assisting the chain with their separate clients.
Segwit2x developer Jeff Garzik has also been discussing the possibility of a BCC fork.
“Now that everybody sees Segwit2x being activated on schedule and as agreed, the UASF disruption to BTC holders should be near-zero,” explains Garzik. “One remaining question is the amount of hashpower that will be dedicated to BCC vs. BTC. Seems like small-but-noticeable bitcoin diff dip is possible.”
BCC will be a responsible chain split, not noticeable to BTC holders. To coin a new term, ‘chain cloning’ — Not disruptive like UASF.
Bitcoin Cash Trading Begins in China
As well as talking about Bitcoin Cash, the start-up Viabtc has added two digital assets called BCC and “BTC_FROZEN2” to their newly launched exchange. “BTC_FROZEN2 represents all tokens besides BCC that may split from the original BTC chain, and is not available for trading,” explains the China-based company. Since Viabtc launched the digital token Bitcoin Cash, the market did quite well on July 22 trading at nearly $900 (¥6000). At press time the price is $533 (¥3600) per BCC and is up over 80 percent over the past 24-hours.
Alongside this, the UASF node count has increased, and supporters of that movement say they will continue running BIP148 nodes until Segwit gets activated. Many UASF supporters believe miners will renege on Segwit activation. Coincidently, hard fork proponents believe small blockers will also renege on the November 2MB hard fork. Additionally, some exchanges like Coinbase may not honor BCC tokens, so those looking to acquire coins from the BCC branch should hold their own private keys.
Throughout the next few weeks, Bitcoin.com will be sure to inform our readers of all the events that are taking place with the network proposals and possible implementations.
What do you think about the BIP91 activation and the progress with Segwit2x? What do you think about the possibility of a Bitcoin Cash branch? Let us know what you think in the comments below.
There’s been a lot going on as far as development goes with the latest alternative clients and the Segwit2x plan also known as BTC1 on Github. One particular subject that came up on the BTC1 repository was the idea to incentivize the development community with time-locked bitcoins to smoothly activate a hard fork.
Time-locked Incentive for a Bitcoin Hard Fork
The hard fork has gotten a bad name over time mostly because of the contentious fork that took place with the Ethereum network. Hard forks aren’t forward-compatible, which means that the entire ecosystem of miners, wallet providers, exchanges, and merchants need to upgrade to the new code. The Segwit2x plan aims to activate Segregated Witness (Segwit) and follow up with a hard fork a few months down the line.
This week Oleg Andreev, product architect of the blockchain network company Chain introduced Issue #72 to the Github repo called “Time-locked incentive for Bitcoin hard fork.” The scheme Andreev says is to incentivize the community with coins that cannot be spent for a period of time until after the completion of a successful hardfork. The idea comes at a time when Segwit2x offers a compromise of both Segwit and a 2MB hard fork, but the problem is some people think the second part of the agreement won’t be fulfilled.
“It is well-known that cryptocurrency development can be incentivized by long-term time-locked coins,” explains Andreev. “Meaning, that the coins cannot be spent in the peak of a bubble, or right before a disaster that was not prevented or worked around. For instance, Greg Maxwell claims that Blockstream uses such scheme.”
What Are Time-locked Bitcoins?
Time-locked bitcoins cannot be spent until a specified time or block height by using a distributed contract recorded on the blockchain. Over the years there have been added improvements to this type of time-locking infrastructure with code development like Check-Lock-Time-Verify, Relative locktime, and Check-Sequence-Verify. Bitcoin luminary and author Andreas Antonopoulos discusses the subject of time-locked bitcoins in his book “Mastering Bitcoin: Programming the Open Blockchain.” Moreover, in 2016 Thomas McCabe gave instructions on how he successfully spent a time-locked bitcoin transaction.
“Bitcoin’s scripting language is very powerful, but access to resources with regards to learning how to build a script is scarce,” details McCabe.
‘Measuring the Amount of “Skin in the Game” to Gauge Responsibility’
Chain engineer Andreev believes this technology could smooth the process of completing a successful hard fork.
“Considering that any hard fork by definition carries an increased systemic risk: from producing chain splits inadvertently (due to overlooked software incompatibility), to splitting the market and shattering the faith in the technology and perspectives of our social experiment.”
It makes sense to introduce a special kind of time-locked incentives that get unlocked only on a hard-forked chain. Such incentives allow community to measure the amount of “skin in the game” to gauge the responsibility of the people behind a hard fork proposal.
Andreev gives specifications to his idea, and a few other developers including Jeff Garzik thought the concept was interesting. Additionally, Andreev’s proposal offers forward compatibility and “the code is expected to be modified to preserve the spirit of the proposal for the future hard forks,” explains the developer. Adding an incentive to smoothly activate a fork or fund bitcoin development, in general, is a unique concept but it’s likely this plan won’t be included in the Segwit2x working group’s current roadmap. There are multiple comments and suggestions made by developers that won’t make the final cut including funny ones like finding the Mt Gox missing bitcoins.
What do you think about incentivizing hard forks with time locked bitcoins? Let us know in the comments below.
Over 5,000 retail stores and restaurants across Japan that currently accept bitcoin payments may suspend bitcoin use in their stores on August 1 if their bitcoin payment processors halt services.
Retail Stores May Suspend Bitcoin Payments
Ever since the Japanese government started recognizing bitcoin as a legal method of payment, a large and growing number of retail stores and restaurants have started accepting the cryptocurrency. However, “some Japanese retailers and restaurants that accept bitcoin are considering halting transactions using the digital currency, which faces a potential split amid competing plans for its future,” according to Nikkei on Thursday.
Restaurant chain Heichinrou and leading electronics retail chain Bic Camera accept bitcoin payments through Bitflyer, Japan’s largest bitcoin exchange by volume. They are both planning to stop accepting bitcoin should Bitflyer shut down its services, the publication detailed.
In addition, Nikkei reported that e-commerce site Bitcoinmall, which accepts digital currencies, is also considering suspending bitcoin transactions for several days beginning on August 1. “We will rely instead on monacoin and other virtual currencies for a while,” said Bitchange, the company which operates the site. Monacoin is an altcoin that has gained popularity in Japan.
Announcements by Bitflyer and Coincheck
Over 5,000 retail stores and restaurants accept bitcoin payments through either Bitflyer or Coincheck which offer payment services for merchants.
Bitflyer recently helped Bic Camera stores roll out a bitcoin payment option nationwide. Meanwhile, Coincheck claims to have helped over 5,000 stores accept the cryptocurrency and is in the process of helping over 260,000 stores nationwide accept bitcoin through a partnership with Recruit Lifestyle. Earlier this month, the two partners started rolling out bitcoin payments, starting with eyeglasses retail chain Meganesuper which has 334 locations.
Bitflyer posted a notice on Wednesday, stating that it may halt bitcoin deposits and withdrawals as well as its payment services on July 31 at 22:00 Japan time until about August 2. Coincheck separately announced on Tuesday:
On August 1, 2017, we may temporarily suspend bitcoin deposit and withdrawal for Coincheck exchange and payment services to protect users assets…The resume date is unspecified, but we expect several hours to several days. Also, if we decide that a Bitcoin fork will not take place on August 1, 2017, 12:00 am, the suspension of services will not happen.
However, on Thursday the possibility of a network split was significantly reduced as the scaling compromise for Segregated Witness (Segwit) was locked in with a strong consensus.
Nonetheless, the exchanges are still prepared to suspend bitcoin services, should a network split occur.
Coincheck announced on Friday that “it is highly likely that ‘Bitcoin Cash‘ hard fork will happen around 9:20 pm (JST) on August 1st, 2017.” In addition, “On July 23, 2017, the event of a fork of the Bitcoin protocol may happen. Initially, it was intended to happen on August 1st, but it may happen faster than anticipated,” the exchange added. However, the suspension of services will not happen if Coincheck decides that a Bitcoin fork will not take place.
Retailers are expected to see little impact from halting bitcoin payments, since most of their business is conducted in cash or credit card, Nikkei concluded.
How do you think retailers will be affected on August 1? Let us know in the comments section below.