Bitcoin Cash, which has surged in price in recent weeks, is set to undergo a hard fork tomorrow. The fork updates the Emergency Adjustment Algorithm (EDA) to enable a stable hash rate, or the number of hashes calculated per second. The change will be activated operationally on November 13th. This means that wallets and exchanges will need to update their software to implement the change.
Bitcoin Cash shares its original algorithm with bitcoin, and miners are reportedly switching between the two cryptocurrencies to optimize their earnings. According to a statement issued by the core development community for Bitcoin Cash, the original EDA algorithm – which was designed to attract profit-seeking miners from the bitcoin network – produced “wild fluctuations” in hash rate. "This is problematic because it prevents consistently fast confirmations for users, and radically shifts the coin issuance schedule,” they wrote.
The new algorithm is slated to achieve five goals, including adjustment of difficulty upon rapid changes in hash rate to avoid “oscillations” from feedback between hash rate and difficulty of problem being solved by miners. It also targets a mean block interval of 600 seconds, meaning the algorithm will adjust speed every 600 seconds based on miner activity for the previous 144 blocks.
Bitcoin Cash was launched in August 2017 after a hard fork from the original bitcoin network. The cryptocurrency’s value declined precipitously to almost $300, after a debut price of $1,000. However, it was on a revival of sorts, reaching a high of as much as $514 two days ago, after the Bitcoin Gold fork last week. Traders seem to have changed their minds and are apprehensive about the new fork. At 16:31 UTC, its price was $450.30.
The long-term prospects of a change in the EDA algorithm are good. According to Juan Garavaglia, CEO of the Bitprim Project, the updated algorithm will “mitigate fluctuations” in block generation. “(It is) giving Bitcoin Cash users a better user experience and is one step forward aligned with Satoshi’s original vision,” he told BitcoinNews.
Read more: Bitcoin Cash Set To Undergo Hard Fork | Investopedia
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