BCH and BSV are halved, and the hash rate drops significantly

Source: LongHash

At 12:19 (UTC) on April 8th, the Bitcoin Cash (BCH) block reward was halved for the first time. According to the code written in the blockchain, when the block height reaches 630,000, the miner reward will be reduced from 12.5 BCH to 6.25 BCH per block. Subsequently, the miners quickly abandoned the network.

Miners do not work in vain. Managing thousands of mining machines also costs money, time, and power. The consequence of halving the bitcoin cash block reward is that miners immediately lose 50% of their income, forcing operators to turn off machines for meager gains or switch to other networks, such as bitcoin.

According to the cryptocurrency mining data website CoinWarz, at the moment when the halving was opened, the block difficulty and computing power (hash rate) of the Bitcoin Cash network began to plunge in a free-fall style.

The hash rate, which is the computing power allocated to mining blocks, reached 785 P (petahashes) per second, which is 80% less than the peak of 4001.5 P per second on April 8.

Block difficulty, which is a dynamic indicator that measures the computational difficulty of miners to process blocks, plunged to 269 billion, nearly 50% lower than the 528 billion on April 8.

As the block difficulty and computing power fell simultaneously, people began to worry about the network security of Bitcoin Cash-Kyle Torpey of LongHash had predicted this in April last year.

According to the data of Crypto51.app (this is a website that tracks the 51% attack to forge or delete the cost of blockchain transaction records), as of 16:30 on April 13, Beijing time, the Bitcoin Cash network was attacked for one hour Only 9121 US dollars, equivalent to the price of 41.11 BCH at that time. According to estimates, the cost of attacking the Bitcoin network at the same time is 520,000 US dollars, which is 57.39 times that of attacking Bitcoin cash. In addition, the cost of attacking the Ethereum network for one hour is $ 85,377, which is one digit higher than the cost of Bitcoin Cash.

Crypto51 derives this data by calculating the cost required to rent 51% of the computing power from NiceHash. It should be noted that NiceHash alone does not have enough machines to provide the computing power to occupy a mainstream blockchain for a short period of time, but the point is that the data on this website can quantify the security of the blockchain network.

After launching a 51% attack, the attacker can logically control the blockchain, and withdrawing or deleting certain transactions is also a breeze. In this case, providers of exchanges or similar services are likely to suffer losses, because attackers can deposit coins into these platforms to obtain accounts and credits, and then withdraw the transaction to achieve double spending, and the money in hand It doubled.

Just at 20:48 on April 10th, Beijing time, BSV also ushered in the first halving, and the number of tokens received by miners was reduced from 12.5 BSV per block to 6.25 BSV per block — BSV miners ’ Revenue actually decreased by 50%.

The miners quickly responded.

And 24 hours before the BSV halving event, BCH experienced its own halving and also showed a similar trend. At the worst time, its hash rate fell by 80% and the difficulty was reduced by 50%.

Data from BlockChair shows that since the halving, the hash rate of BSV has dropped from 3.06 exahashes / s to 1.83 exahashes / s at 16:30 on April 13th, Beijing time, a decrease of about 40%. Hash rate measures the computing power allocated by miners to the network through the hash value.

This has been reflected in the difficulty of the network, or the difficulty of the miner in processing the block on the blockchain. According to Satoshi.io, the network difficulty fell from 420 x 109 to 212 x 109.

It is worth mentioning that within 15 hours after the halving occurred, only 35 BSV blocks were dug, which is 55 fewer blocks than the normal period. Since the blockchain uses network difficulty to ensure that an average of 6 blocks can be dug out per hour, it should continue to dynamically adjust the difficulty to ensure that transactions are processed on time.

The reason why the hash rate, difficulty, and block time fall simultaneously is related to the profitability of miners.

This halving caused the revenue of miners operating on the BSV chain to drop by 50%, forcing those operators with low profits to shut down or move to other networks to mine. The reduction of miners means that there are fewer computers processing blocks, which ultimately leads to slower transaction speed.

As the price of BSV fell, the current price of the coin was nearly $ 40 lower than that of BCH, and both network security has rebounded since the hash rate shrank significantly.

Despite the rebound, the safety of the two chains is much lower than it was two days ago. At the same time, at least according to CoinWarz, Bitcoin's hash rate has risen, indicating that the halving of Bitcoin's fork has pushed miners to other more profitable blockchains. In this case, other blockchains refer to the Bitcoin blockchain.

Original source: LongHash: BCH and BSV are halved, and the hash rate has dropped significantly