Bitcoin Cash is set to undergo a hardfork on Nov 15, a move that will determine whether the community will shift to the proposed Bitcoin Cash Node network. According to an update by hardware wallet provider Trezor, the hardfork attempts to integrate a new model for the distribution of mining rewards.
Notably, Trezor will not support the Bitcoin Cash Node network instantly; its users who wish to participate in the hardfork have since been advised to transfer their BCH coins to wallets that will support the hardfork on the launch date.
This hardfork was triggered by a proposal from the Bitcoin ABC team that would see them receive 8% of all block rewards, funds they purport will be allocated to development. However, the proposal was not well received by the Bitcoin Cash community and hence the upcoming hardfork scheduled for mid-month.
As it stands, 75% of the blocks support the hardfork to introduce Bitcoin Cash Node as the main blockchain ecosystem for this community. Nonetheless, SatoshiLabs, the entity behind Bitcoin Cash, will continue to support Bitcoin ABC until a consensus is agreed upon. This does not mean that it will participate in the hardfork.
In the event of a coin split, crypto exchanges and wallet providers with integrated support for the Bitcoin Cash Node network are set to facilitate the process. They will do so by taking a snapshot of users’ account balances, after which the Bitcoin Cash Node will mint an equal number of tokens and start to broadcast as well as handle transactions.
Should the community agree towards Bitcoin Cash Node, SatoshiLabs will cease to support Bitcoin Cash ABC and integrate with the new ecosystem. It is quite noteworthy that Bitcoin Cash is originally a Bitcoin hardfork from 2017; this network was later forked in 2018 and gave birth to Bitcoin Cash SV and Bitcoin Cash ABC. With a new probable split in the pipeline, the competition for hash power is likely to increase between the existing networks.