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Bitcoin startups clarify stance on possible network split on August 1st
Bitcoin startups are gearing up for the hard fork that may take place on 01 August 2017 and laid out plans in the event of a network split.
The Bitcoin Cash Fork (BCC) is scheduled to activate on August 1st. It could result into two versions of the Bitcoin blockchain and two separate digital currencies: the original Bitcoin and Bitcoin Cash.
BitPay said that it has no immediate plans to use or support the Bitcoin Cash fork. It said in a blog post:
“All of BitPay’s activity will be conducted on the main Bitcoin chain as created by the hash rate (mining power) majority. This means that your customers will not be able to pay a BitPay invoice using BCC. All BitPay payouts and settlements will be on the main Bitcoin chain as usual.”
Blockchain clarified that while it has no immediate plans to fully support the Bitcoin Cash fork within its main product, it will support the longest chain in the event of two separate blockchains after August 1, 2017.
“[I]f BCC develops into an actual chain and market, you will be able to use your recovery phrase to export your funds and use them on that chain, regardless of whether or not Blockchain chooses to support it,” it added.
BTCJam said that it will temporarily l disable deposits and withdraws until the upcoming protocol changes take effect, adding:
“In the case of two surviving blockchains we are going to support the blockchain with the most accumulated difficulty. Deposits and withdraws will be suspended starting 11pm UTC July 31st and will be reinstated as soon as the protocol becomes safe to transact.”
Coinbase decided against support Bitcoin Cash fork as it is difficult to predict how long the alternative version of bitcoin will survive and if Bitcoin Cash will have future market value. It said:
“In the event of two separate blockchains after August 1, 2017 we will only support one version. We have no plans to support the Bitcoin Cash fork.”
Freewallet has announced that it will support Bitcoin Cash and plans to release Bitcoin Cash wallet on August 1st to provide its customers full access to the new coin.
Gatecoin said that in the event of Miner Activated Hard Fork (MAHF), it will wait until after the hard fork to determine whether it will facilitate transfers and trading of Bitcoin Cash as it needs to thoroughly assess the robustness of the altcoin’s replay attack protection. It will make an announcement 48 hours after the fork.
In its official statement, Grayscale Investments said that it currently expects to cause the Bitcoin Investment Trust to liquidate any Bitcoin Cash associated with the Bitcoin held by the Trust and to cause the proceeds of such liquidation to be distributed on a pro rata basis to holders of units of the Trust. However, it clarified that it can offer no assurance as to whether or when proceeds from the liquidation will be distributed due to a number of uncertainties surrounding Bitcoin Cash – whether it will be created at all, the timing and method of creation, development of trading markets. Furthermore, any such distribution may be delayed or prevented due to technical, regulatory, commercial or other considerations, including security concerns.
Kraken said that although the Bitcoin Cash fork is expected to be minor, it may be successful. It announced its support for Bitcoin Cash, on the condition that unforeseen circumstances do not make it prohibitively unsafe or difficult for it to do so.
Purse said that it will offer its users the choice of withdrawing any newly created coins or automatically converting that value to additional Bitcoin for their Purse wallet. It added:
“If the Bitcoin Cash blockchain continues, and the currency has significant value after August 8, 2017, we will take a snapshot of account balances prior to the hard fork, with the intent of providing the option for customers to withdraw BCC or convert that value to BTC on Purse.
“On or around August 10, Segregated Witness (SegWit) is expected to activate, initiated by the SegWit2X project. SegWit is an upgrade to Bitcoin that fixes transaction malleability enabling new innovations such as the Lightning Network. We do not expect a chain split with this event, as SegWit activates through a soft fork.”
Xapo said that it may temporarily halt incoming and outgoing transfers from the Bitcoin network, along with temporarily suspending the Xapo Debit Card and the conversion from dollars and other currencies to bitcoin and vice versa.
“In the event of two surviving blockchains, we will support one blockchain, the one with the most accumulated difficulty,” it said.
Users intending to make bitcoin transactions during the fork need to move their bitcoin out of Xapo before 23:00hrs UTC on July 31st. Xapo said it will give users the choice to withdraw the coins in the secondary blockchain or to let it sell the coins in that secondary blockchain and automatically add that value to their account in the supported blockchain.
“There is no estimated date as to when this will be determined, as it will be only when we deem it safe and sensible to do so,” it added.
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