In the crypto world there are many curious facts. And, the operation of the different cryptocurrencies, allow things like the recovery of 3 million dollars in Bitcoin Cash by a user. Which were believed lost since the realization of a hard fork in the BCH Blockchain in 2017.
Bitcoin Cash: an alternative
The birth of Bitcoin represented a true revolution throughout the world. Being the first virtual currency designed and managed independently to governments. Returning power over money to users who use it, thus avoiding government and business manipulations.
However, being the world’s first cryptocurrency, Bitcoin was born with several defects. Which were visible especially during the first stellar moment that the currency had in 2017. When during the bullish rally of that year, the need to generate solutions that would improve the scalability of the cryptocurrency was demonstrated. And thus avoid problems such as waiting times greater than 30 minutes for the execution of a transaction.
Soon, a group of users began to promote a proposal to solve this problem: the enlargement of the BTC Blockchain blocks. A feature that had not been modified in Bitcoin since its birth, despite the change in technological and market conditions.
This proposal was rejected by the majority of the crypto community of BTC, leading the group of users that promoted it to decide to abandon the project, creating its own cryptocurrency, Bitcoin Cash. Integrating in its programming two methods to increase the speed of execution of transactions.
The first of these is a larger size in the blocks of the chain, bringing them up to 8 MB, several times more than Bitcoin. The second method was the implementation of the SegWit software update. The one that would be at the root of the loss of the recovered Bitcoin Cash.
Loss of BCH
The SegWit update of the Blockchain represented the origin of the conflict. Beginning to create similar addresses among themselves in all the details, except in the use of Nested SegWit, a means for the inclusion of users in the use of this update. But that generated a problem when another user sent Bitcoin Cash to these addresses. The same are trapped, except for network miners who could execute the script with which these addresses work.
In this way, the miners began to offer their services to those who sent their BCHs by mistake to these addresses. Recovering them in exchange for a commission for their effort. Starting this type of work since November 2017.
Being the most important case of recovery of Bitcoin Cash that has occurred today. With 9,000 BCH, equivalent to 3 million dollars being recovered from a SegWit wallet where they had been accumulating over 3 years.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.