On November 13, 2017, the Bitcoin Cash (BCC) network will hard fork to make a few performance adjustments, according to Bitprim’s Juan Garavaglia. The goal is to fix the network’s Difficulty Adjustment Algorithm (DAA) and tests are already being conducted.
The hard fork is reportedly going to be a smooth one as Garavaglia assures that it has support and is only meant to upgrade the protocol, unlike the hard fork that led to Bitcoin Cash’s creation in August.
The network’s DAA, per Garavaglia, allows difficulty to adjust faster than every 2016 blocks if miners are unable to find blocks in a timely manner. Its original goal was to help BCC survive as a minority chain, Garavaglia said.
Now, however, the algorithm’s effects are leading to a miner “gold rush” whenever mining difficulty drops, which then makes it rise as quickly as it fell. While speaking to Bitsonline, Garavaglia explained:
“So we have this situation of extremes where blocks are being mined every minute, or every few hours. This is not what users want. Also, Bitcoin Cash is now thousands of blocks ahead of Bitcoin and it is screwing up the coin issuance schedule.”
So far, no alternative algorithm has been chosen, but Garavaglia and the Bitcoin ABC team are searching for one, while testing proposals from developers such as Tom Harding, Neil Booth, and Amaury Séchet. Although an algorithm hasn’t been chosen yet, the team is confident on having an answer that can be successfully implemented on November 13.
According to Garavaglia’s comments on Bitcoin.com, the fork has been under discussion for a while, and the timing has nothing to do with the approaching SegWit2x hard fork on the Bitcoin network. Moreover, he detailed that extreme amounts of hashpower were being added to tested algorithms to see how difficulty adjusts in these scenarios.
It’s been noted that the development team working on Bitcoin Cash is in contact with miners and exchanges, to ensure a smooth hard fork. Forum discussions across the Bitcoin Cash community also point to a consensus, as most BCC supporters were already asking for a solution to the protocol’s difficulty algorithm.
The DAA has been a serious problem for Bitcoin Cash, so much so that various individuals point to it as a priority. Garavaglia noted that so far every algorithm being tested has been performing better than the current DAA.
Wences Cesares, a member of PayPal’s board of directors and the CEO of bitcoin wallet Xapo, has also pointed to an incredibly high number: $1 million in 5-10 years, while speaking at the Consensus 2017 conference in New York.