The show of support helped reverse a slide in the value of bitcoin from around $1,900 two weeks ago to roughly $2,800 on Monday.
Amidst the calm, the Bitcoin world assuming that chaos had been averted, announced plans to launch Bitcoin Cash on 1 August, those proposing Bitcoin Cash claiming that the SegWit2x protocol did not guarantee a doubling of the Bitcoin block size upon the splitting of the information held within each transaction.
Whether or not Bitcoin Cash catches on depends on the miners - the owners of the computing power that is used to verify transactions. It aims to increase the block size to 8MB and remove SegWit2x proposal (explained in the next section).
Though Business Insider reports that only a minority of exchanges support the new currency, those who do will have an equivalent amount of Bitcoin Cash added to their virtual wallet, with value subject to rise and fall with the stock market. The first of these to be released is named "BitcoinABC".
All you need to do is learn about the Bitcoin data directory and back it up - especially of your wallet.dat file! - before installing Cash.
Though the change is created to improve capacity on the increasingly clogged network, some miners had objected because it could reduce transaction fees they collect. However, the site warned those who are using third-party exchanges to inquire with them to ensure their money will be safe during the transition. Competing Bitcoin blockchains will result in interesting developments. Many exchanges, perhaps most notably Coinbase, have made a decision to not list the new cryptocurrency at all. So, if you now own one Bitcoin, as of 5:20 a.m. PT on August 1 (assuming things go down as planned) you will own both one Bitcoin and one Bitcoin Cash (as long as you control your own private keys).
The so called User Activated Hard Fork is seeking to solve bitcoin's scaling problem by increasing the block size to 8 MB.
Did you find this article on Bitcoin Cash useful? As it now stands, the number of transactions is limited to around 3 per second, and a single transaction on the blockchain - essentially the act of making a payment - can be delayed for extended periods of time as it waits for available space on the next block.
The risk of transaction "replay" attacks.. "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".
All eyes are on bitcoin this week as it's expected to split in two. Such an occurrence is called a "replay attack".
GettyWhat is the bitcoin fork?
Adopted by many of bitcoin's biggest players, the Segwit2x technology creates a parallel blockchain working alongside the existing one, thereby easing the burden and allowing faster transactions. Bitcoin's price recovered from sub $2,000 levels around mid-July and has been hovering around $2,500 levels in the last 10 days. A future in which Bitcoin and Bitcoin Cash are the two top cryptocurrencies is not unlikely. The replay protection was therefore only "one way". Compared to Bitcoin, the new fork is stressing on high speed and volume of transaction.
The parties involved do make great play of the fact that it was "near instant" (after a almost two month due diligence process).