The Bitcoin Cash (BCH) hard fork was one of the most talked-about events in the blockchain space since the last bear market. Amid the frenzy of technical debates, mining battles, and price swings, many newcomers found themselves overwhelmed. This guide breaks down everything you need to know about the BCH fork—what it is, why it happened, and what it means for the future of decentralized networks.
What Is a Blockchain Fork?
In simple terms, a fork is a software upgrade to a blockchain network. When developers or the community decide to change the rules of the network, a fork occurs. There are two main types: hard forks and soft forks.
A hard fork creates a permanent split in the blockchain. Once implemented, nodes that haven’t upgraded can no longer validate blocks created by updated nodes. This often results in two separate chains—each with its own transaction history and native cryptocurrency.
On the other hand, a soft fork is backward-compatible. Upgraded nodes can still communicate with older ones, meaning no new coin is created. The network continues as one chain under updated rules.
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The key difference? Compatibility. If old nodes accept new blocks, it’s a soft fork. If they reject them, it’s a hard fork.
Forked cryptocurrencies—often called "fork coins"—typically distribute new tokens to existing holders at a 1:1 ratio. For example, anyone holding Bitcoin before the BCH split automatically received an equal amount of Bitcoin Cash. These free distributions are commonly referred to as "airdrops" or "crypto candy."
The Birth of Bitcoin Cash (BCH)
Bitcoin processes a new block approximately every 10 minutes, recording all transactions during that window. However, each block is limited to just 1MB, restricting Bitcoin’s throughput to roughly 5–7 transactions per second (TPS).
As user adoption grew, this limitation became a major bottleneck. Transactions backed up, fees spiked, and confirmation times slowed—sparking intense debate over how to scale Bitcoin.
Two primary solutions emerged:
- On-chain scaling: Increase block size to fit more transactions.
- Off-chain scaling: Use secondary layers like the Lightning Network.
In 2017, tensions peaked. A faction led by mining giant Bitmain proposed User Activated Hard Fork (UAHF)—a direct increase in block size—to create Bitcoin Cash. On August 1, 2017, the hard fork succeeded. BCH launched with an 8MB block size, rejecting Segregated Witness (SegWit), a protocol upgrade adopted by Bitcoin.
Holders of BTC at the time received an equal amount of BCH—a landmark moment in crypto history.
The 2018 BCH Civil War: ABC vs. SV
Fast forward to November 2018, and another hard fork loomed—one that would split BCH itself.
This time, the conflict wasn’t about block size alone but the vision for BCH’s future. Two camps emerged:
1. Bitcoin Cash ABC (BCHABC)
Led by Bitmain co-founder Wu Jihan, BCHABC aimed to evolve Bitcoin Cash into a smart contract-capable platform. Inspired by Ethereum and EOS, this faction supported adding programmable features like:
- Cross-chain atomic swaps
- Oracle integration
- Enhanced scripting capabilities
They proposed maintaining a 32MB block size while focusing on functionality.
2. Bitcoin Cash SV (BCHSV)
Championed by self-proclaimed Satoshi Nakamoto impersonator Craig Wright (aka "Faketoshi" or "CSW"), BCHSV stood for “Satoshi’s Vision.” This group believed Bitcoin should remain purely a peer-to-peer electronic cash system.
Their core principle? Maximize scalability through massive block sizes—starting with 128MB—while removing complex scripting to preserve simplicity and security.
This ideological clash turned into a full-scale hashrate war, with both sides mobilizing mining power to secure their chain.
The Hashrate Battle: Who Won?
On November 16, 2018, the fork occurred. Both chains began producing blocks independently.
Initial data showed BCHABC leading in block production, with mining pools like BTC.com and Bitcoin.com quickly securing early blocks. Within hours, BCHABC had mined 12 blocks compared to BCHSV’s 6.
Market reactions were immediate:
- BCHABC/BTC: Traded at 0.05 BTC, up 17.92% in 24 hours
- BCHSV/BTC: Dropped to 0.01 BTC, down nearly 50%
Wu Jihan celebrated on Twitter:
“Congratulations! After this new block, there will no longer be troublemakers in the BCH community!”
But victory was far from clear-cut.
Why the Win Was Pyrrhic
Despite technical momentum, several red flags emerged:
- Community fragmentation: The split damaged trust and unity within the BCH ecosystem.
- Price collapse: BCH’s overall market value plummeted due to uncertainty.
- Alleged算力挪用: Evidence suggested Bitmain redirected mining resources from Bitcoin (BTC) to support BCHABC—a controversial move that raised ethical concerns.
- Long-term viability: As one analyst noted, “A hash war is a marathon, not a sprint.” As long as BCHSV supporters kept mining, the battle wasn’t over.
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What Happens After a Fork?
Post-fork dynamics are complex and often unfold in stages:
Phase 1: Parallel Mining
Initially, miners on both sides continue hashing. Exchanges typically suspend deposits and withdrawals to prevent replay attacks and double-spending risks. During this phase, both chains survive independently.
Phase 2: 51% Attack Threats
The weaker chain becomes vulnerable to 51% attacks, where a single entity controls majority hashing power. Attackers can reverse transactions (double-spend) or halt confirmations—forcing exchanges to extend withdrawal freezes.
This phase tests resilience. Only chains with sustained economic support survive.
Phase 3: Protocol Adjustments
If one side struggles to maintain hashrate, they may consider changing the mining algorithm—a drastic step that risks alienating miners and users alike.
Even if successful, such moves can trigger massive sell-offs, especially if large holders (like Craig Wright’s team) begin dumping coins.
Frequently Asked Questions (FAQ)
Q: Does every hard fork create a new cryptocurrency?
A: Not always—but most do when there's no coordinated replay protection or shared consensus. In the case of BCH splitting into ABC and SV, yes, two distinct coins emerged.
Q: How do I claim forked coins if I held BCH before the split?
A: If you controlled your private keys before the fork, you likely own both ABC and SV tokens. You can access them using a wallet that supports both chains and importing your seed phrase.
Q: Can a blockchain recover after a contentious hard fork?
A: Yes, but it depends on community support, developer activity, and exchange listings. Some forks fade; others thrive independently (e.g., Ethereum vs. Ethereum Classic).
Q: Was the BCH fork good for decentralization?
A: Ironically, no. The concentration of mining power and corporate influence (e.g., Bitmain) highlighted centralization risks—even in supposedly decentralized systems.
Q: Are hard forks dangerous for investors?
A: They carry risk due to volatility and potential loss of funds if users don’t secure both sides properly. However, they also present opportunities through free token distributions.
Core Keywords
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While the dust has settled, the legacy of the BCH fork endures. It serves as a cautionary tale about governance, ideology, and the delicate balance between innovation and stability in blockchain ecosystems.
Whether you're an investor, developer, or observer, understanding forks is essential to navigating the evolving world of digital assets.
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