Bitcoin Hard Fork and Bitcoin Cash FAQ
TL;DR On August, 1st new cryptocurrency Bitcoin Cash(BCC) is going to emerge due to Bitcoin hardfork. After Bitcoin Cash wallet is released users who hold any amount of BTC in their Freewallet will be automatically credited with the corresponding number of BCC.
There’s a lot of fuss in the Bitcoin community about the scaling improvements that may result in the hard fork on August, 1st. Taking into consideration the upcoming changes in Bitcoin protocol and the Bitcoin Cash (BCC) launch on the same date, Freewallet team would like to state its position regarding these major changes.
We believe that the freedom of choice is one of cornerstones of blockchain technology. Freewallet respects community decisions and will support any technology with sufficient number of supporters. Our main mission is to provide Freewallet customers with the highest possible security level and make the transition swift and easy, keeping users’ assets safe and secure.
Freewallet developers team has worked hard to get prepared for any scenario that may happen on August, 1st. Further on we’ll provide some background and throw a light on how the upcoming changes will affect Freewallet users.
What is the purpose of the scaling improvements?
As Bitcoin popularity continues to grow and even more enthusiasts get involved in Bitcoin operations, the Bitcoin network faced the urge to increase its capacity and reduce processing fees to handle all the transactions properly.
There are two protocol upgrades aimed at increasing the network capacity, namely UAHF and UASF. Although both pursue the same goal, the consequences are different.
What is UAHF and UASF?
Initially the Bitcoin Core dev team proposed a backward compatible protocol upgrade called Segregated witness or SegWit that had to be activated through BIP141 in case the majority of hash power had been ready to upgrade within single difficulty period before November 15, 2017. Shortly after users announced BIP148 also known as User Activated Soft fork or UASF, scheduled on August 1st. From the activation moment, the nodes would have rejected the blocks that are not ready for BIP 141.
In a separate development, the critical mass of Bitcoin ecosystem agreed on a protocol upgrade activation through BIP 91, which requires only 80% of hash power to signal for readiness to activate SegWit. This is 10% less of hash power that is required to activate SegWit through BIP141. Every block that does not signal readiness for SegWit has to be either orphaned by the miners, thus creating a SegWit chain, or accepted and kept on a non-SegWit chain. This might lead to a Bitcoin hard fork.
Are my funds safe during the event? Do I need to withdraw my Bitcoin from Freewallet?
Since the very first operation day, customers’ assets security has been and continues being Freewallet’s top priority.
Working in close collaboration with Bitcoin developers we deployed a solution to ensure both funds safety and Bitcoin Freewallet operating in full.
The team guarantees all their customers will be able to make transactions and manage their portfolios before and after the hardfork.
What will happen to the Bitcoins I own if the split happens?
If the UAHF occurs and a new blockchain is formed, Freewallet will support any major newly born cryptocurrency along with the old Bitcoin. All the customers who hold Bitcoins on Freewallet during the fork will be credited with the equal amount of the new asset.
What is Bitcoin Cash (BCC)?
When the UAHF is implemented, the miners that support it will split away, resulting in a new blockchain and also creating a new cryptocurrency called Bitcoin Cash, or BCC. BCC will be a fork of Bitcoin with upgraded consensus rules, and its main features include the increased block size of 8MB, new transaction signing method and both integrated replay and wipeout protection.
BCC is already supported by various services, including mining pools and cryptocurrency exchanges.
Is Freewallet going to support Bitcoin Cash?
Freewallet is made by cryptocurrency enthusiasts and for cryptocurrency enthusiasts, and its mission is to keep the finger on the community’s pulse in order to provide the widest range of up-to-date services to meet the most demanding expectations. We stand for expanding the list of supported currencies to provide the users with the possibility to choose and support their favourite. Thus, Freewalet contributes into new economics evolution and growth.
Taking into consideration the high probability of the upcoming hard fork, Freewallet team has developed a brand new Bitcoin Cash wallet that is ready to launch on August, 1st.
All current Bitcoin holders will automatically own the same amount of Bitcoin Cash.
What do I need to do to get my BCC?
No special actions are required. Right after the hard fork each Freewallet user that had Bitcoin on his or her Freewallet balance before July, 31st will be automatically credited with the equal amount of BCC.
Freewallet team assures you that all the customers’ funds will be handled with the top level of security both during and after the scaling improvements.
For additional information kindly contact Freewallet team at firstname.lastname@example.org