All You Need to Know About the BCH Hard Fork

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Bitcoin Cash (BCH) is gearing up for a pivotal moment in its network history—an upcoming hard fork scheduled for November 15. This event marks yet another divergence in the cryptocurrency’s evolution, driven by deep-rooted disagreements within the community. Unlike soft forks, which maintain backward compatibility, a hard fork introduces protocol changes that are not compatible with previous versions, potentially splitting the blockchain into two separate chains.

Such forks are not new to the crypto world. Since Bitcoin’s inception in 2009, numerous splits have given rise to alternative blockchains like Bitcoin XT, Bitcoin Unlimited, and Bitcoin Cash itself. Now, BCH faces a similar crossroads, with developers, miners, and users divided over the future direction of the network.

The Core of the Conflict: Infrastructure Funding Plan (IFP)

At the heart of this hard fork lies the Infrastructure Funding Plan (IFP), proposed by the Bitcoin ABC development team. Amaury Sechet, lead developer of Bitcoin ABC, argues that ongoing development requires sustainable funding. To address this, the IFP suggests reallocating 8% of each block reward—currently 6.25 BCH per block—from miners to a fund supporting core developers.

This model isn't unprecedented. Cryptocurrencies like Zcash and Dash have implemented similar funding mechanisms to ensure long-term project viability. Proponents believe that without dedicated financial support, innovation within the BCH ecosystem could stagnate.

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However, critics—including prominent figures like Roger Ver and supporters of Bitcoin Unlimited—view the IFP as a threat to decentralization. They argue that redirecting miner rewards consolidates too much power in the hands of developers, undermining the trustless nature of blockchain networks. Miners, whose incentives would be reduced, may resist adopting the new rules, leading to a chain split.

Two Chains, Two Visions

As consensus failed to emerge, two distinct chains are expected to emerge post-fork:

This division has split the community. While Bitcoin ABC enjoys widespread node adoption and could become the dominant chain by network share, market sentiment and exchange support will ultimately determine which chain gains long-term traction.

NilacTheGrim, a respected voice in the BCH community, criticized both sides in a widely-read blog post titled “On Why Amaury Should Resign.” He described the conflict as driven by self-interest rather than community benefit, stating that such infighting betrays the original vision of Bitcoin Cash as a peer-to-peer electronic cash system.

Preparing for the Fork: A User Guide

With the fork date approaching, users must take proactive steps to safeguard their assets and understand potential outcomes.

For Node Operators

If you're running a full node on the BCH network, compatibility will depend on your software version. To align with the Bitcoin ABC chain, upgrade to Bitcoin ABC 0.22.0 or later before November 15. Non-mining nodes do not require special configuration changes but should still update to remain on the desired chain.

Testing your node setup ahead of time ensures smooth operation during the transition. Nodes running outdated or incompatible software risk being left on an orphaned chain.

For BCH Holders

Token holders should be aware that hard forks often result in airdrops—new tokens distributed to existing holders on a 1:1 basis. If you hold BCH in a personal wallet like Electron Cash, you may be able to claim coins on both resulting chains after the split.

However, private keys must be securely managed. Accessing both chains typically requires splitting funds before the fork or using replay protection tools afterward.

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Exchange and Wallet Support

Most major platforms anticipate service disruptions during the fork:

Users are advised to monitor official exchange announcements and avoid trading during the immediate post-fork window to prevent losses due to price volatility or replay attacks.

Understanding Bitcoin Cash: Origins and Evolution

Bitcoin Cash emerged in 2017—not 2018 as sometimes misstated—as a response to Bitcoin’s scalability challenges. By increasing the block size from 1MB to 8MB (later expanded further), BCH aimed to enable faster transactions and lower fees, fulfilling Satoshi Nakamoto’s vision of everyday digital cash.

The network has since undergone multiple upgrades and splits, including the SegWit2x controversy and the rise of Bitcoin SV (BSV). Each fork reflects differing philosophies about decentralization, governance, and monetary policy.

Today’s IFP debate echoes those earlier tensions: Should development be funded centrally, or should incentives remain purely with miners and users?

Frequently Asked Questions

Q: What is a hard fork in blockchain?
A: A hard fork is a permanent divergence in a blockchain’s protocol that creates two separate chains—one following old rules and one enforcing new ones. It requires all participants to upgrade their software.

Q: Will I get free coins from the BCH fork?
A: Possibly. If you hold BCH in a compatible wallet before the fork, you may receive an equal amount of the new chain’s tokens. However, exchanges may delay distribution or choose not to support the new coin.

Q: How can I protect my BCH during the fork?
A: Move your coins to a non-custodial wallet like Electron Cash before November 15. Avoid trading during the split and wait for replay protection mechanisms to be activated.

Q: Which chain will become the main Bitcoin Cash?
A: The dominant chain will likely be determined by market price, hash rate, exchange listings, and community support. Historically, exchanges play a major role in legitimizing one chain over another.

Q: Does the IFP make Bitcoin Cash more centralized?
A: Critics argue yes—by directing funds to developers, it introduces a form of centralized control. Supporters counter that sustainable funding leads to better long-term decentralization through active development.

Q: Can I run both chains after the fork?
A: Yes, but it requires separate node software and careful management of private keys to avoid replay attacks between chains.

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Final Thoughts

The November 15 hard fork represents more than just a technical upgrade—it's a referendum on governance, funding, and philosophy within the Bitcoin Cash ecosystem. While uncertainty remains, informed users can navigate this transition safely by understanding their options and preparing accordingly.

As history shows, forks are both disruptive and transformative. Whether this split strengthens or fragments BCH’s future depends on how its community responds in the weeks ahead.


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