Bitcoin vs. Bitcoin Cash: Coexistence or Downfall of Bitcoin Cash

Bitcoin vs. Bitcoin Cash: Coexistence or Downfall of Bitcoin Cash



thank you for interesting me yeah hi I'm using from Christ you know today I'm gonna talk about the economics of my knee so the actually it specifically with the remaining hotter with we know – sure the church and what is the dynamics so I'll answer to these questions in the rest of this talk this is a you know this is a during work who is professor Hong Sheng and Gino and my other virtual room day okay so first of all is a bit concat actually is the Bitcoin suppressed from better transitions calibrating so several solutions were proposed however there was political complete indeed solutions so due to this conflict between was eventually split into Bitcoin and between cash orbitty speciate which it has increased transition scalability through a simple idea that is an increase on on both sides so between had one megabyte algebra 5y o Bitcoin cash had a megabyte edible science now the list they have a comparable money algorithm here the comparable money algorithm means the miners can conduct both bc8 MBT mining with one money hardware in this situation how do you – behave now surely rational – first always always pursue a higher profit so depending on the profitability of coal mining – can dynamically switch the Queen to be mind if it's the more profitable to condole BTC money then they can dynamically conduct British mining otherwise if which more profitable to conduct PTH mining then they can conduct research mining even look the coin mining profitability depends on the boss when price mining difficulty however we should not they're predicting of the Queen prices quite more difficult than the mining difficulty so the in due to this property we can observe the sudden large power movement only when the coin mine difficulty changes for example look at this can I use generation yeah yeah I don't I can use the leisure okay okay yeah so look at this figure the utter start of the gradient the bishop a bit Queen mine difficulty decreased so large power moves from BTC to officiate at the end of the gradient the BCH mine difficulty increase okay so because of that the has large hushpower move from PTC to vitiate to capture this behavior we formally defined the peak of mining so for you to understand a so you can see this figure of equal minor judges has coin as the interval between turquoise only when the Queen mine difficulty changes so in this figure at TJ rule the pH bountiful T is high so large in mining power is involved in the Bishop BTC mining after that at T 1 the vitiate mine difficulty decrease so the larger has power moves from B to C to B CH after that a t2 the research ban difficulty increased because of that the large mining power moves from PCs to PTC then considering this peak remaining one will happen more formally water Calabria in the situation and how will the money power change so to descend we consider became and analyze this there are two types of player first many – Whismur much power and second ho th factions the first type is the usual rational minor so the usual rational minor finally choose the most profitable run among three strategies first pick remaining a second own repetition mining and third only be search mining that is depending the profitability of strategy the miner can dynamically choose the most profitable we should note that only petition and only research mining cluster they continuously conduct petition ambitious respectable to go to waste of the combined difficulty however the truth hi Berta second type of miners quad-core Abhishek factions are concerned only about the maintaining their distance between cows for example we can consider be main we manage the biggest company producing mine harder and be made was the involved in the birth of bitcoin castle so we may may be such affection and they can only conduct research mining in other words they only choose only wish – strategy this triangle figure representative state so where x axis represent the hash pareciĆ³ pic remaining and y axis represent the hash pareo only PCH mining because the hash power ratio thumbs of Vikram mining and mrs. mining is a less than 1 the state should be presented inside the triangle moreover K represent the price ratio between B shades and petition we can divide into three Jo so depending depending on the strategy profitability so in the first journey its most profitable to condom only petition mining in the second zone its most profitable to conduct only appreciates mining and in the fight in the final journal its most profitable to conduct week remaining according to the division of regions the state moves along the cross funding arrow so for example you you can see the first jump as I said before in the first shell only with each mining is the most profitable so – Ruth changed their choice to only pitch mining and the red arrow in the first joined the acosta cause the sauce were stirred so now I will describe what is equilibrium so to describe this I will divide into four case depending on the hash power ratio full curve PCs factions in the first case the relative power ratio protocol business factions Israel there are two type of equilibria first the coexistence and the town for obesity the yellow point is questions and below the yellow line is the town for obesity where there is no vision or a – so this is in in the state of the down for wishes BCH blocks cannot be generated moreover we should note the town from obesity from K 0 to 1 0 in other words the happy occurrence of fickle money is equilibrium the second zone the hospital ratio political research fraction is small there are also two type of equilibria first quotients and second or lack of issuer – and the red line indicates when hash power ratio moving in only BCH mining is equal to the hospital ratio with pH of fractions therefore the local wishes you well – implies that the only political vitiate affections are preciate lower minors in the third case when the hash power ratio political wishes factions in small also there are two equilibria as questions and/or like obesity where – and this point is Kristin and this yellow point is a lack of vision or – in the final case the hash bar ratio political vitiate affections is a large there is only one equilibria on lack of pH you are minors here you can wonder why this tie to represent all the code which you are – because you can think the interstate the Lua vitiate shipment in empower is you know but not the large mining power is processed biofuel and the test called preciate political fiction until now I did I described that there are two equilibria first questions second all the cobia children – by the way does the state really move in practice according to our theory what happened in practice and it is no lack of there are – really dangerous actually in the reality though came between BTC and bitch h-sorted on August 1st 2017 this state is the birthday of mythical cash so in doctor agent at the oval the oval figure represent actual data of the hash power of each pal ratio of Bitcoin cows in the region vicar minors should conduct between cows we try to map each state into our triangle zone to do this we also collected the Queen priced and minor difficulty for more detail you can see you can see our paper and game start the point moves downward as shown in the below figure specifically the state the point is originally in jump first and then goes down to June to enter that the state moved angel 3 where the combining is most profitable so the hash power involved in Vic remaining largely increased in the Triangle figure you can see the red and black arrows the red arrows missed movement of hushpower in agreement with our theory while the black arrow is the movement the very from our theory actually we were able to observe some deviations when the state point is caught two boundaries options for example you can see the second figure so you can see the black arrows in this figure as a result before November 13 2017 the stitches was closed to the tonfa of wit quincas and at that time the Bitcoin cash States suffer from the lack of will or miners what does the locals were – Influenster between cash system there are three things first worst calamity the Bitcoin cash transactions was the process bid critically became though and it even took four hours to generate one below in some cases second the lower level of the centralization there are only five – and only two account you generated some represented lots and finally the lower level was secreting dosha stamatis off server to top responding attacks with only one to two percent of the torille conditional power as a result scalability – some conversation as security all of them are undermined however there was a good thing on Bitcoin just between cash system there was a hard walk in the Witkin cash system so between has updated its mining difficult adjustment algorithm this change of factor theater came as an external factor so in other words due to this hard work on november 13 2017 the status jumped from john 3 into John – not that that not that in John 2 toast this becomes close to the cohesion coexistence so in practice toast at this point gradually become close to the core instance this reason this is in agreement with our theory now between cashier safe actually there is another scheme quote automatic mining in this scheme – automatically choose the most profitable and this game has already been popular there is a mining pool called multiple suffering this scheme and also because usually between money to support one bottle switcher functions so usual miner can implement the automatic manual or deep technical knowledge want the automatic mining can be stated or gave as follows when the Queen price remind difficulty changes – can immediately switch the Queen to be mined here what is the difference between ultimate – Vic remaining remember that in the coal mining only when mine difficulty changes the miners can immediately switch the Queen to be mined therefore total mining can be considered to be automatically choosing the most profitable run among remaining and only British mining and me pH money in real time an RKO nurses can be applied to the inertia stop perfect after too much money again consider the triangle figure this red line your project that offical mining has power ratio is the same as K which is the price of price ratio between between cash and bit Queen in the right side of the red line a red line all all errors move downwards in other words in the region the BCH were – all decrease concerning this fact we can conclude that when of an array she okay of the troll mining power is involved in the automatic mining then the state moves toward Ola Co bit quick cash to our miners Cronulla K is about 5% so Bitcoin cash is still not safe well 5% of hushpower is involved in automatic mining and there are all heartbroken the Bitcoin cash register so eventually with quick cash system was bullied into Bitcoin ABC and between us we between two coins there was a huh sure this what you literally on aggressive were actually this has you belongs to the fourth case where there is only one equilibrium as a black curve between cash fewer miners with the tastes of the hospital ownership check our paper then how about either you enduring clashing we shall our came can be generalized in other words our ownership can be applied to any two coins that have comparable mining algorithms the only important requirement is the major coin should have a magnificant is similar to between currently between my difficulty is or justed every every every 2016 block so this this part implies the major question of just my difficulty adjustment with a relatively long period of time currently between country there has a short mining difficulty adjustment period so to undermine the miner Queen enduring classic them either insured your hard work for mining difficulty adjustment argue obtains but the update is not hard so we already observed many sources voltage of mining difficulty algorithm as a result interim can undermine the classic so mining difficulty of mining difficulty adjustment arguing update in summary survey combining ultimate mining one major coin conundrum in the house of the Minor Queen yeah thank you for once awesome very interesting talk any questions let me start up start off as a was a question do you see you observed a lot of fluctuations and a lot of variation in hashing power did you consider any mitigations that would allow you to saturate or or protect against these kind of fluctuations we observed many we observed a lot of fluctuation in hash power and we can observe so d'etat marches so and we can we can we can concern this fluctuation the traffic remaining so the Queen priced and my difficulty data and they and going past analyzing can you mitigate people's which enforcement and reduce the security risks that are exposed yeah yeah so actually as I said before the hard work of the Bitcoin mining Bitcoin cash mine difficulty update can be mitigated can mitigate the hash power fluctuation because because after hard work sorry after hard work of it quick ask mine difficult adjustment every day between mine difficulty is adjusted or relatively fast so minor fear only to change your Queen mining yesterday yeah right so your answer would be to change the economic incentives to reduce the amount of switching that the miners do yeah thank you yeah any other questions thanks for an interesting talk Eugene yeah thank you [Applause]

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About the Author: Maximilian Kuhn

1 Comment

  1. There will be only variation of the Bitcoin protocol in the end, it will be the original protocol (BSV), not the changes ones (BTC & BCH)
    BSV scales the best, works as per the Bitcoin white paper. Past few years Blockstream, privately owned corporation funded by bankers, started smear campaign and propaganda against miners, original Bitcoin code, saying how it doesn't work, can't scale, etc, how miners are centralised… all of which is FALSE, and then when Craig Wright came back because Blockstream have fu**ed up the code in BTC, and it had to be changed back, there was fight over scaling, which resulted in chain split (BTC/BCH), and for a short while it seemed that BCH guys wanted original Bitcoin protocol also, but this wasn't the case, they wanted something else as well, which is what resulted in 2nd chain split (BCH/BSV) where BSV is the one that remains working and fixing up the code to go back to original Bitcoin protocol. I explain all this in my videos, feel free to watch.

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