If the miner is dissatisfied with the BCH incentive halving, it may cause cyber security problems.

If the miners are dissatisfied with BCH incentives halved, it may cause cybersecurity problems

"Bitcoin Jesus" Roger Ver also recently supported Bitcoin cash, saying that it is not only more market-reputable than Bitcoin, but also popular with many Japanese merchants. In addition, Roger Ver does not seem to look good on the Bitcoin Lightning Network. He believes that Lightning Network provides users with a "horrible" experience and even hinders the long-term scalability of Bitcoin.

Then, in a market environment that looks good, Long Hash’s latest analysis shows that Bitcoin cash may soon have a major problem: halving block incentives next year may bring security to the entire network. Serious side effects.

In the early stages of bifurcation from the Bitcoin blockchain, the issuance of Bitcoin cash was very high, which made it more profitable for miners to mine bitcoin cash than to tap bitcoin. Not only that, but the Bitcoin cash network also has a completely different mining difficulty adjustment algorithm (DAA), which can increase the currency base faster than Bitcoin. Under the stimulation of these advantages, more and more miners began to pour into the bitcoin cash network mining, which also led to a sharp drop in the bitcoin network hash value.

However, as the halving of the Bitcoin cash block incentives is approaching, many things will change, and even some security issues may arise soon.

First, halving the block reward means that the overall reward will be reduced, and the reduced block incentive subsidy will eventually make the miners reluctant to use high computing power to protect the network, which in turn leads to a decline in blockchain security. This kind of problem is not without precedent. The failure of the SegWit2x hard fork in 2017 has proved that the miners attach great importance to block incentives.

Secondly, the current bitcoin cash network is still relatively insecure, because Bitcoin and Bitcoin cash use SHA-256 mining algorithms, so many miners share computing power. If the Bitcoin cash block incentives are halved, there will be a miner who chooses to leave the Bitcoin cash network and switch to the Bitcoin blockchain, thus exacerbating further tightening in the security strength of the Bitcoin cash network.

In fact, Bitcoin has dominated the current SHA-256 mining algorithm on the market, which has also made the security of the Bitcoin cash network suspect. However, if the bitcoin cash price can keep rising during the recent market recovery, even if the late block incentives are halved, its network security may remain unchanged, because the miners remain in Bitcoin because of price factors. In the cash network, use their high computing power to maintain network security.

Transfer from: Planet Daily

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Three executives resign, Binance faces challenges.

The fate of Binance is currently the most important factor in the cryptocurrency field.


Binance Crypto Trading Takes a Hit as Order Book Liquidity Tanks 25% - Brace Yourself for the Challenge!

Discover the Importance of Order Book Liquidity Ability to Trade at Quoted Prices with Speed and Ease


Latest Interview with Zhao Changpeng: Being "Under the Microscope" of Regulation, Market is Recovering in Bearish Period

On May 29th, Binance CEO Changpeng Zhao gave an interview to Bankless discussing his views on the current state of th...


Binance Surges with 30% User Growth: A Closer Look at the 2023 Year-End Report

Binance experiences a remarkable 30% growth in 2023, bolstering its user community and affirming its commitment to ad...


Reading the allegations from the US Department of Justice, what lies ahead for Binance?

The record $4 billion fine is a warning from the US government to the Crypto industry. Compiled & written by Kare...


Kevin O'Leary Predicts Binance's Customer Exodus to Abu Dhabi's M2 Exchange Will Half of the Crypto Giant's Users Jump Ship?

According to Shark Tank's Kevin O'Leary, Abu Dhabi's M2 exchange may pose a major threat to big players in the industry.