The Bitcoin Cash network is undergoing a pivotal moment in its evolution with an upcoming hard fork scheduled for 15th November 2020 at 12:00 UTC. This upgrade, proposed by Bitcoin Cash ABC (Alternative Bitcoin Cash), introduces significant technical changes aimed at shaping the future of the blockchain. As the community braces for potential divergence, exchanges and users alike must prepare for possible outcomes.
This article outlines the key aspects of the hard fork, explains the technological updates involved, and clarifies how major platforms are responding—ensuring you stay informed and protected during this critical transition.
Understanding the Bitcoin Cash Hard Fork
A hard fork occurs when a blockchain splits into two separate chains due to incompatible protocol changes. In this case, the Bitcoin Cash network is facing a split primarily driven by disagreements over development funding and consensus rules.
Bitcoin Cash ABC has introduced two major upgrades:
- ASERT (Adjusted Signed Error Rate Target): A refined difficulty adjustment algorithm designed to stabilize block times and improve mining responsiveness. This allows faster adaptation to changes in network hash power, reducing long block intervals and enhancing transaction throughput.
- Coinbase Rule: A controversial mechanism that requires miners to allocate 8% of block rewards to the Bitcoin Cash development fund. Blocks failing to comply would be rejected by nodes supporting this rule.
While ASERT is widely accepted for its technical benefits, the Coinbase Rule has sparked intense debate within the community. Critics argue it centralizes control and imposes mandatory funding, leading to the emergence of Bitcoin Cash Node (BCHN)—a client that supports ASERT but rejects the donation mandate.
The Battle for Bitcoin Cash: ABC vs. BCHN
As of now, BCHN holds a dominant position, with over 75% of network nodes running its software. This indicates stronger community and miner support for a decentralized governance model without enforced developer taxation.
Bitcoin ABC, on the other hand, maintains backing from certain development teams and investors who believe structured funding is essential for long-term innovation.
The outcome of the fork will be determined by:
- Chain length (accumulated proof-of-work)
- Node distribution
- Exchange support
- Market sentiment
Ultimately, the chain with the most computational power and broadest acceptance will likely be recognized as the legitimate continuation of Bitcoin Cash.
Exchange Response: Protecting Users During the Fork
To safeguard user assets and maintain market integrity, exchanges are implementing precautionary measures ahead of the fork.
Deposit and Withdrawal Suspension
For security reasons—particularly to prevent replay attacks, where transactions on one chain are maliciously duplicated on another—many platforms, including EXMO, will temporarily suspend BCH deposits and withdrawals.
- Suspension time: 13th November 2020 at 16:00 UTC
- Trading: Will remain active during this period
- Resumption: To be announced post-fork based on network stability
Post-Fork Asset Management
After the fork, exchanges must decide which chain to recognize as “Bitcoin Cash” under the BCH ticker. The general industry approach is to support the longest chain (i.e., the one with the most accumulated work), regardless of branding claims.
Key policies include:
- Maintaining the BCH ticker for the dominant chain
- Not automatically listing alternative forks (e.g., BCH ABC or BCHN) unless they gain substantial traction
- Conducting a balance snapshot before the fork to determine eligibility for any airdropped tokens
If a new asset emerges (such as BCH ABC) and the exchange chooses to list it, users will typically receive tokens on a 1:1 basis relative to their BCH holdings at the time of the snapshot.
👉 Stay ahead of crypto forks and learn how to secure your holdings before network splits occur.
Frequently Asked Questions (FAQ)
What is a hard fork in blockchain?
A hard fork is a permanent divergence in a blockchain’s protocol that creates two separate chains. Nodes running the old software become incompatible with the new rules, resulting in a split. One chain continues with updated rules, while the other may persist under the original protocol.
Will I lose my Bitcoin Cash during the fork?
No. If you hold BCH in your exchange or wallet before the fork, you retain ownership of coins on the main chain. If a new token is created and supported by your platform, you may also receive equivalent amounts of the new asset.
What is a replay attack, and how is it prevented?
A replay attack occurs when a valid transaction on one blockchain is fraudulently repeated on another after a fork. Exchanges mitigate this risk by suspending deposits/withdrawals and sometimes implementing replay protection mechanisms like unique transaction signatures.
Which chain will be called Bitcoin Cash after the fork?
Most exchanges, including EXMO, will use chain dominance—measured by hash power and block count—as the deciding factor. The ticker "BCH" will remain with the longest, most secure chain, irrespective of whether it's labeled ABC or BCHN.
Should I move my BCH before the fork?
If your BCH is stored on a reputable exchange, moving funds is generally unnecessary. The platform will handle the fork process, including snapshots and potential token distribution. However, if you use a private wallet, ensure your software supports your preferred chain and consider backup strategies.
Could trading be suspended during the fork?
Yes, temporary trading halts may occur if network instability arises or if there's ambiguity about which chain is dominant. Exchanges aim to minimize disruption but prioritize asset safety over continuous trading.
Final Outlook and Community Impact
The November 2020 Bitcoin Cash hard fork represents more than just a technical upgrade—it reflects deeper philosophical divides within the cryptocurrency space about governance, funding models, and decentralization.
While Bitcoin Cash ABC seeks to institutionalize developer funding, BCHN champions community-driven development free from mandatory contributions. The market’s response will serve as a referendum on these competing visions.
For users, clarity comes from preparation. By understanding fork mechanics, trusting transparent platforms, and staying informed through official channels, you can navigate such events confidently.
As always, monitor trusted sources for updates after 15th November 2020 to see which chain prevails and how services resume normal operations.
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