The Bitcoin Cash Hard Fork Event
The Bitcoin Cash network recently underwent a planned hard fork, marking a significant update to its protocol. However, an unexpected development occurred when BitMEX Research reported on November 15 that an unknown mining pool failed to update its software, resulting in the continuation of the old chain.
Key Details of the Fork
- Timing: The hard fork occurred at 16:49 UTC at block height 609,135.
- Outcome: Fork Monitor detected that the Bitcoin ABC 0.19.0 client considered the block at height 609,136 invalid, while Bitcoin ABC 0.20.6 accepted it, confirming the successful completion of the planned hard fork.
The Emergence of an "Orphaned Chain"
The failure of the unknown mining pool to update led to the creation of an "orphaned chain," which continues to operate despite being technically invalid. This situation has raised concerns within the Bitcoin Cash community.
Consequences of the Orphaned Chain
Resource Wastage
- No Rewards: Blocks on the orphaned chain generate no fees and receive no block rewards.
- Financial Impact: Mining the incorrect chain could cost up to 25 Bitcoin Cash (approximately $6,600), excluding electricity costs.
Chain Split
Shortly after the fork, two additional blocks split into separate chains, producing a total of four new blocks. This divergence highlights the complexities of blockchain consensus mechanisms.
Community Concerns
Unresolved Issues
The Bitcoin Cash community remains concerned about unresolved debates surrounding the mining difficulty adjustment algorithm (DAA). The current DAA, based on a 144-block moving window (approximately 24 hours), allows some miners to exploit the system, leading to abnormal hash rate fluctuations.
Competing Chains
- Old Chain: The unknown mining pool using Bitcoin ABC 0.19.0 considers the new chain invalid.
- New Chain: BTC.co, mining the new chain with Bitcoin ABC 0.20.6, considers the old chain invalid.
According to the Nakamoto consensus mechanism, the chain with the longest history is trusted, rendering shorter chains obsolete.
FAQs
What is an orphaned chain in blockchain?
An orphaned chain occurs when a blockchain splits due to a consensus failure, leaving one chain invalid and unsupported by the majority of the network.
Why did the Bitcoin Cash hard fork lead to an orphaned chain?
An unknown mining pool failed to update its software, continuing to mine the old chain despite the hard fork's completion.
What are the risks of mining an orphaned chain?
Mining an orphaned chain wastes resources, as blocks generate no rewards and miners incur significant costs without financial returns.