Leading Bitcoin Cash Developer Says Future Fork Unlikely

Cryptocurrency forks may slow down in the future, as argued by leaders of several crypto hard fork projects at the CoinDesk Consensus Singapore event.

AccessTimeIconSep 20, 2018 at 6:30 a.m. UTC
Updated Aug 18, 2021 at 9:53 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Cryptocurrency forks are likely to slow down considerably in the future, leaders of several major projects, all of which were formed by forks, said at CoinDesk's Consensus Singapore event today.

On a morning panel, Amaury Sechet, the lead developer behind Bitcoin ABC, the most widely used bitcoin cash software implementation, noted that the industry has already seen a slowdown in forks since 2017. Over 50 percent of nodes running the bitcoin cash software, created in 2017 from a fork of bitcoin, now run Bitcoin ABC to connect to the network.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Sechet argued that each time when a cryptocurrency fork happens, it leads to the loss of the network effect in the original blockchain, reducing the ability to create future value.

    "You can only do that a certain amount of times," he said, adding that a majority of future crypto forks will eventually become meaningless.

    In this way, he put forth the argument that the value of the fork is derived from the strength of the disagreement that sparks the fork, leading a project down competing paths.

    "I think there may be many, many forks in the future, but 99 percent of them will become worthless eventually," he noted. "The bitcoin communities had many arguments before about forks, but not many people really give anything because every one just kept fighting with each other."

    Further, he said he believes it's unlikely bitcoin cash will fork in the near future, arguing that participants in the project's open-source community remain aligned on overall objectives, if recently they have diverged on specifics.

    "I think it's unlikely bitcoin cash will fork into something else," he said.

    Jack Liao, CEO of the Hong Kong-based LighteningASIC mining equipment firm, who initiated the Bitcoin Gold fork last year, shared similar views and said communities' internal conflicts appear to have been quiet compared to last year.

    "If there's no conflict, there's no fork, because you need to get supporters," Liao said.

    CoinDesk reported last year that Liao initiated the idea of creating Bitcoin Gold, a crypto asset that was forked off the bitcoin network in an effort to replace bitcoin mining via ASIC miners with GPU chips.

    It came just months after the bitcoin cash fork, championed by mining pools and bitcoin mining giant Bitmain as a way to boost the block size of the bitcoin blockchain network for handling more transactions.

    James Wo, who heads the ETC Labs, which focuses on building ecosystem for ethereum classic, also weighed in saying that the fundamental value of cryptocurrency forks comes from the string of disagreements from the community, adding:

    "The fork only happens when there's really a huge diverge in a community."

    Ethereum Classic is the cryptocurrency the continues to run the original ethereum code, after the projects main developers forked the code in 2016.

    Asked about how they see the competition between crypto forks and the original network, the panelists indicated the competition certainly exists to some degree, though they compete for different businesses and user segments.

    Wo, for instance, said there's competition between ethereum classic and ethereum "for sure," but that they co-exist to suit different user demands, such as ETC for those who look for cheaper transaction fees while ETH for those who demand more diverse services.

    Commenting on such competition, Liao said much of the attacks among the bitcoin communities also derive from their marketing and public relation strategies, referring to bitcoin cash's self-branding as the true bitcoin.

    Sechet said that it's true to some extent that forks compete with each other but reinstated that the goal of what bitcoin and bitcoin cash are trying to reach do vary.

    He concluded:

    "The goal that the two project want to build is different and the target audience is not quite the same."

    Panel image via CoinDesk

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.