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Bitcoin Splits in Two Currencies on Divisive Background

ECONOMY: Scheduled for a while, the event of Bitcoin splitting into two currencies caused a fall in prices on Tuesday …

A rift in the land of crypto-currencies. Cash bitcoin, has appeared on Tuesday following a split in the bitcoin community, the result of a disagreement concerning the speed of transactions.

Specifically, the protesters launched a proposal to improve the Bitcoin (BIP for Bitcoin Improvement Proposal) will differentiate the new currency of the existing bitcoin and allow faster acceleration of exchanges conducted through it.

The protesters felt that other proposals for improvement, largely voted by the community, not going far enough to move to 22 transactions per second against 11 currently. They offer up to 56 transactions per second with bitcoin cash. For comparison, Visa works to 2,000 transactions per second.

“Enough marginal”

“This is a fairly small protest that will generate a bitcoin operating divergence”, told Greg Revenue, managing partner at Bryan Garnier. “90% to 95% of the community accept the new structure, it will be quite marginal,” he said.

“The question now is how will distribute the computing power in the ”minor” [producers bitcoin], it will penalize transactions for several days. But the question remains whether bitcoin cash will be convincing over the long term”, said for his part Jonathan Gerardin, IT manager and architecture of IT systems Wavestone firm.

The prices down

The bitcoin was down about 5% after the announcement on Tuesday night to 2731.41 dollars (2312.40 euros). The bitcoin had reached its historic high on the 12th June to 2999.97 dollars, which represented an increase of 222% since the beginning of the year.

The appearance of bitcoin cash is not a first. Other crypto-currencies have indeed followed the launch of bitcoin in 2008 as Ethereum in July 2015 or the zcash in October 2016.

The blockchain, deemed tamperproof

Virtual currency, also known as crypto-currency, Bitcoin is a system based on the peer-to-peer, which was invented by one or more individuals under the alias Satoshi Nakamoto. The principle of creating this currency based on blockchain, a technology that uses encrypted and authenticated transaction blocks that are added to each other.

The blockchain is deemed unfalsifiable because, to change information, it will change simultaneously for all users, which tends to ensure the stability of the system.

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