Upcoming Fix for Bitcoin Cash “Turbo Blocks”

Welcome, welcome to One Minute Crypto! I’m your host, Chronos, and today I want to talk about the difficulty adjustment
algorithm between Bitcoin and Bitcoin Cash. As you may recall, back on August
1st, 2017, Bitcoin Cash was born through a blockchain fork between Bitcoin and
Bitcoin Cash. And they both have the same goal: to mine about one block every 10
minutes. One of those two blockchains is always going to be a little bit more
profitable to mine than the other, and so miners are incentivized to pile onto
that blockchain. In this chart, profitability over time, you
can see Bitcoin Cash becoming much too profitable and getting blocks way,
way too fast. And then you can see difficulty adjusting, and it becoming way
too difficult to mine, and all the miners switching back to Bitcoin. This is bad
for both blockchains. So we’re seeing a new proposal coming forward to fix
Bitcoin Cash, to make the bitcoin ecosystem safer all-around. So this is a
great thing for Bitcoin Cash. We’re going to see more consistent block times. It’s
also a great thing for Bitcoin, because that means that miners won’t be
switching back and forth between the two chains so abruptly, which means a smoother difficulty curve for Bitcoin as well. So this is a great thing for both
ecosystems, and I’m looking forward to seeing it in the marketplace.

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