Categories: EducationFAQ

What is the Bitcoin Cash Token?

Multiple solutions to address the current Bitcoin scaling issue have been proposed. These are vying to be embraced by the community. Exchanges and service providers are faced with a tough decision. They need to pick sides or ensure all potential forked currencies are supported. ViaBTC wants to introduce a Bitcoin Cash token if the UAHF activates. That is somewhat good news for Bitcoin ABC supporters.

Is a Bitcoin Cash Token Even Viable?

Mining pools and service providers have drawn battle lines in the sand when it comes to Bitcoin scaling solutions. ViaBTC is one of the companies supporting whatever Bitmain and Antpool are doing. In a recent blog post, the company announced how their exchange platform will create a new token in case the user-activated hard fork would ever activate on the network.

If that were to happen, we will probably see another “type” of Bitcoin emerge on a separate blockchain. Assuming that is the case, exchanges and wallet providers need to come up with a designation for this new currency. ViaBTC will label the UAHF token as “BCC,” or Bitcoin Cash. Considering how the UAHF may activate as soon as August, we may see BCC come to life.

The user-activated hard fork is more commonly known as Bitcoin ABC. This particular scaling solution has been introduced as a contingency plan to thwart any “negative impact” from the user-activated soft fork -or UASF- which is scheduled to go into effect on August 1st. With all of these competing solutions, a Bitcoin split almost seems inevitable, even though it is widely believed common sense will ultimately prevail. Only time will tell if that is the case.

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With SegWit2x, UASF, and Bitcoin ABC all planning to stake their claim on the Bitcoin network in the weeks to come, things will get very confusing for a lot of people. If Bitcoin ABC were to split off into its own blockchain, ViaBTC will support it as a Bitcoin Cash token. Other exchanges and wallet providers have yet to pledge their support if such a chain split were to occur in the future. Having a BCC token across exchanges will not help in the confusion department by any means.

This decision also means ViaBTC would consider any chain operating under Bitcoin ABC as not the “real Bitcoin.” The company wants to honor the New York Agreement, which means they still look at SegWit2x as the “main” Bitcoin scaling solution. Whether or not we will see a conflict between SegWit21x and the UASF supporters, remains to be determined. Both solutions are not mutually exclusive, but they do not share too many supporters either.

If Bitcoin ABC were to become its own blockchain, ViaBTC will also launch a BCC mining pool to officially support this altcoin chain. Rest assured August 1st will be a very important day for Bitcoin. Bitcoin ABC wants to prevent the UAHF from gaining traction, yet the success chance of SegWit2x is anything but guaranteed. We may end up with three different Bitcoin blockchains.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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