Ryan X Charles, the CEO of Money Button and Bitcoin Cash [BCH] proponent, recently released a video detailing how a split can be prevented on the Bitcoin Cash blockchain. This comes at a time where the fork of the network is due in close to 10 days and might cause a split in the chain.
He began by saying that he didn’t really want to see a split and that it was a “bad situation”. This is because he wanted to create “world money” which translates to unifying and not splitting. Moreover, splitting the chain would further decrease the network effect of the chain, and more people using it would add to the value. In contrast, a split would make the network only ¼th of its previous value, not in terms of value, but in terms of utility.
He spoke about the launch of Bitcoin Cash, and how it had replay protection. This led to every transaction needing to have a different fork ID and a different signature algorithm, so as to make the transaction valid on Bitcoin Cash but not on Bitcoin [BTC]. However, this split is a different case, clarified Charles.
On this split, there is no replay protection, meaning that every wallet creates transactions that are valid in both chains. However, Bitcoin.com aimed to counter this by announcing a plan to add replay protection by utilizing an OP_CHECKDATASIG in their transactions. This is going to split the transaction history on the chain, stated Charles.
He further elaborated on the importance of recognizing that there were two different chains on the network. This would further lead to transactions having their own chains, and the transactions themselves not knowing in which blockchain it is. This is what most wallets are going to do, he stated.
He further beseeched wallets and exchanges to not implement replay protection if they are anti-split, stating that all transactions to be accepted in wallets are on both chains. Moreover, if a transaction in invalid on one chain, it should be treated as being invalid.
This provides a method for many services built on BCH, like the Money Button, to effectively provide protection against loss of funds that might be undertaken in the split.
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