Editor's Note: This article has been deleted without changing the author's original intention.
In April, for BCH, there is a big event that attracts much attention-BCH is halved. Regarding the upcoming halving, there have been many discussions and predictions regarding this. As for the outcome, BCH will eventually give you an answer with its own performance.
- BCH and BSV are halved, and the hash rate drops significantly
- Viewpoint: After halving, the Bitcoin network security model may need to be adjusted
- Babbitt Column | What are the improvements in the three major branches of Bitcoin in 2019?
- Platform development, protocol upgrades, code delivery - 2nd anniversary of the birth of BCH
- The Twitter account "Bitcoin" has long-term support for "Bitcoin cash", and some people have petitioned the CEO to seal it.
- What is the impact of halving BCH, BSV, and BTC?
What is halving?
First explain what halving is, " the reward for producing each new block is halved ." Like Bitcoin, BCH is obtained through mining machine operations, and miners will receive a certain amount of rewards for the output blocks, which is also the way each new BCH is born.
Bitcoin is a reward that will be reduced by half for every 210,000 blocks produced, and the mining difficulty is stipulated to be an average of about 10 minutes to dig out a block. Satoshi Nakamoto already took this point when developing Bitcoin Written into the code base. Based on an average block of 10 minutes, we need 4 years to produce 210,000 blocks, that is, every 4 years, the output will be halved.
BCH is set up similarly to Bitcoin, and the reward will be reduced by half for every 210,000 blocks produced. In theory, the block generation time of BCH and BTC is about 10 minutes, and the halving time should be the same, but because BCH early adopted a period of EDA emergency difficulty adjustment algorithm, that is, if the BCH blockchain is If there are less than 6 blocks mined in an hour, the difficulty drops by 20%, which makes BCH's early block generation speed faster than BTC, so the halving time of BTC is later than BCH.
BCH halving time
According to the BCH code setting, every 210,000 blocks of BCH is a cycle, that is, the reward will be reduced by half every 210,000 blocks mined. Therefore, when the BCH starts at the block of 0 ~ 209999, the reward for each block dug is 50BCH; then there is a halving, in the 210000 ~ 419999 blocks, the reward for each block dug is 25BCH; In the 420,000 ~ 629999 blocks, the reward for each block dug is 12.5BCH, in the 630,000 ~ 839999 blocks, the reward for each block dug is 6.25BCH …
The first two halvings of BCH followed Bitcoin, which occurred in November 2012 and July 2016, respectively, and the third halving pass calculation this year is expected to occur around April 8.
Benefits of halving BCH
The halving of block rewards means that it takes longer for all BCH to enter circulation, but it also means that mining new BCH will be less and less, and due to its limited supply and increased difficulty in mining, it leads to its scarcity More and more obvious, scarcity will directly enhance the value, as the saying goes, things are rare! For BCH, there is no doubt that this is a very good thing.
In contrast to the fact that most fiat currencies lose value over time due to inflation, the halving model is the opposite. It puts upward pressure on prices. After halving, the annual inflation rate of BCH will also be adjusted directly to 1.80%, a significant decline.
BCH halved, what do we need to prepare?
In fact, for BCH halving, the main thing BCH supporters do is psychological preparation. Compared with the BCH upgrade, the major nodes upgrade in time before the upgrade, and the main reason for the halving is the block reward halving. Although we don't need to do anything in advance, we must have a very clear understanding of this matter.
Especially for the miners, with the same computing power, the BCH commission fee obtained from the previous 12.5BCH becomes 6.25BCH. Therefore, some people worry that the BTC has not been halved at this time, and the halving of BCH will cause miners to avoid the loss caused by the halving of BCH earlier than BTC. When BTC and BCH have basically the same increase and decrease, about 50% The BCH computing power is cut to BTC, and the average block time of BCH is greatly lengthened. The output of mining BCH with the same computing power is lower than BTC, resulting in more computing power being cut off, and more computing power being cut away, resulting in The block time is longer …
In fact, this worry is superfluous. Because the difficulty adjustment algorithm of BCH is different from BTC. BCH's mining difficulty adjustment algorithm is an improved DAA algorithm. In simple terms, it has the following characteristics:
1. Adjust mining difficulty block by block;
2. The mining difficulty of each block is adjusted based on the computing power of the 144 blocks in front of it;
3. When the computing power changes according to the exponential law, the network will quickly adjust the difficulty to ensure fairness
4. Avoid feedback oscillation caused by the mismatch between the current computing power and the target difficulty.
The above characteristics of the DAA algorithm ensure that even if the computing power drops by 50% instantaneously, it only has a short impact on the BCH block generation speed. The DAA algorithm can quickly adjust the difficulty according to the actual calculation power and return the block generation time to a normal level.
And a large amount of computing power is withdrawn from BCH. This is a practical case to consider: the most typical example is the "hashing power war" when BSV splits. BCH computing power has dropped sharply for several days, with a cumulative decline of more than 50%. The average block time of BCH can still be stabilized at about 10 minutes. Facts have proved that in the case of rapid withdrawal of a large amount of computing power, the DAA algorithm can quickly adjust the difficulty according to the actual computing power, so that the average block time is restored and stabilized at about 10 minutes. It can be seen that even if there is a withdrawal of 50% of the computing power, the impact on the BCH block time is short and slight. In addition, BCH has added reorganization protection, 10 block confirmation, and there is no need to worry about 51% attack. For BCH, the halving will go smoothly.
For the developers and eco-builders of BCH, halving BCH is just a small episode, without too much attention, just quietly waiting for the arrival of halving, continue to develop BCH and ecological construction, and use your own power for BCH Contribute. They can attract more users to use BCH through technical improvements and ecological improvements, making BCH more powerful.
For market investors, the most concerned about is the price of BCH, after all, this is also the halving market that has been discussed. At this point, we can refer to Bitcoin. To some extent, every halving of Bitcoin has seen a different degree of rise. However, bitcoin's uptrends only appeared after halving for at least half a year or a year, and peaked almost a year later. The previous two peaks were December 2013 and December 2017.