The Bitcoin Cash Hard Fork is scheduled to be activated on November 13th. Since this is a hard fork, both exchanges and users will have to update their wallet software.
The main purpose is to change the consensus rules with an updated Difficulty Adjustment Algorithm (DAA). The current Emergency Difficulty Adjustment (EDA) made sense at the time of the initial fork, but is no longer optimal since it causes unsteadiness in the hashrate.
The new algorithm is looking to do the following:
- Adjust difficulty to hash rate to target a mean block interval of 600 seconds.
- Avoid sudden changes in difficulty when hash rate is fairly stable.
- Adjust difficulty rapidly when hash rate changes rapidly.
- Avoid oscillations from feedback between hash rate and difficulty.
- Be resilient to attacks such as timestamp manipulation.
If it is able to accomplish the above, then we should see shorter and more stablized block times for Bitcoin Cash.
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