Published on: 2017-11-04T03:37:06+00:00
There is concern that changes to the difficulty adjustment algorithm (DAA) for Bitcoin Cash (BCH) may have implications for Bitcoin (BTC). The current DA is only sufficient if BCH has the highest hashpower, which could lead to long block delays. High transaction fees could incentivize miners to defect back to BTC, but if SegWit2x becomes more comparable in price to BCH, hashpower could oscillate between the two coins, causing delays for both. It is advised to monitor what happens when BCH implements its new algorithm to see if BTC needs a hard fork for the same reason and requires a similar fix.Scott Roberts suggests that Bitcoin may need to hard fork and use a similar algorithm to BCH, as it is likely to be simple and tested. BCH's algorithm uses a median of 3 for the beginning and end of the window to address bad timestamp issues. It also has limits on the adjustment per block. Roberts recommends that BTC consider using this algorithm with a modification of N=50 instead of the current N=144. Another contender is Degnr8's D622 algorithm, which gives higher weight to more recent timestamps.Bitcoin Cash plans to implement a new difficulty algorithm with its hard fork on November 13th. If necessary, Bitcoin may also hard fork to use a similar algorithm. The current algorithm for BTC is considered slow and only effective if it has the highest hashpower. The first coin to hard fork and fix the difficulty problem will have an advantage, as observed in other altcoins. Developers are advised to observe BCH's implementation of the new algorithm to prepare for a potential hard fork.The discussion on the Bitcoin development mailing list regarding the implementation of a new difficulty algorithm for Bitcoin Cash reveals differing opinions. Scott Roberts praises the code but expresses concern about potential politicization if the word "Cash" is mentioned. Gregory Maxwell argues that the discussion is off-topic and criticizes the proposal as coming from a competing system. The mailing list is reminded to focus on Bitcoin development and avoid off-topic posts.In an email, Scott Roberts praises the code of a previously criticized group as a viable solution to a threat facing Bitcoin. He urges colleagues not to be distracted by competitors trying to divert attention away from their own proposals.Overall, Bitcoin Cash's new difficulty algorithm is seen as one of the best options due to its simplicity and testing. It uses a median of three for the beginning and end of the window to address timestamp issues. There are also limits on adjustment per block. Bitcoin may consider adopting this algorithm with a modification of N=50. However, Degnr8's D622 algorithm is regarded as a better contender. It assigns higher weight to recent timestamps. Any modification to the algorithm's weighted average is believed to reduce its effectiveness. Bitcoin Cash's hard fork on November 13th will provide insight into the success of their new algorithm.
Updated on: 2023-08-01T22:06:15.473765+00:00