Bitcoin Cash is a proof-of-work (PoW) coin that uses the SHA-256 hashing algorithm.
Sound messy and confusing?
As of today, Poloniex will be offering customers the option to trade two tokens which will stem from the upcoming Bitcoin Cash ($BCH) hard fork. The new hard fork is said to be geared toward allowing a much bigger block size, which triggers all sorts of speculations on why you should or shouldn't make block sizes larger.
One particular subject of contention is the manner in which Bitcoin Cash should accommodate smart contracts and BCH-based crypto tokens. The official message board for Bitcoin Cash is bitcointalk.org. Investors seeking to acquire Bitcoin Cash using USA dollars directly can do so using Gemini, Coinbase or GDAX.
That in itself isn't unusual.
But now there's a major divide in opinion, which could lead to two separate cryptocurrencies.
Software company Bitcoin Cash ABC put forward the proposal, hence the name.
Their software is used by two-thirds of Bitcoin Cash mining nodes, who simply need to upgrade the software to implement the upgrade. Nevertheless, the November 15 hard fork - just the second since BCH forked away from Bitcoin - has been hotly debated, as various development groups have significant disagreements about which upgrades should, and should not, be activated on the network. Binance was the first to announce its support of the hard fork. "You will now discover me when pissed off".
In a nutshell, Bitcoin Cash ABC is about laying groundwork for huge scaling in the future. But because the upgrade is irreversible, the majority of miners should agree to migrate to the new protocol for the chain to remain intact.
It is likely that this is the primary motivating factor for the increase in demand and volume on the Bitcoin Cash, but, of course, there are other factors, such as a developing ecosystem.
Of course, this is all subject to change as we move closer to the hard fork implementation.
Such pre-fork markets were popular prior to both the original hard fork that split Bitcoin Cash away from the main Bitcoin network last August, as well as the planned SegWit2x fork that failed to activate on Bitcoin last December.
The one-hour cryptocurrency chart shows an uptrend in the $474.63-$574.45 range and a downtrend that saw the price drop from $611.23 to $597.22.
Block Explorer News will keep you up to date in the coming week as the clash evolves.