Crowd Sourcing answers for XCPC... ;)


#1

I’ve got a few questions for the community to consider and would love to hear your thoughts.

  • What happens if there is a crackdown by nation states on crypto miners like what is already happening in China? How will the BCH blockchain cope with losing a significant portion of the mining rigs (e.g 30% + )? Wouldn’t that affect transaction speed and future scalability due to the PoW model?

  • Would it make sense for XCPC to own and operate its own mining operation and secure its own power supply that is not dependent upon national grids which are obviously owned and operated by nation states?

  • What will be the mechanism to run ICOs on the BCH Blockchain using XCPC? ETH has smart contracts which are its ‘killer app’ which allow to fully automate token issuance. They also have a mature standard (ERC20) for streamlining this type of activity. BCH (and BCT as well) don’t have that and therefore there is a need to use manual escrow arrangements.


#2

Hi Ginmi,

Great questions!

Answer 1:

Bitcoin Cash has implemented a responsive proof-of-work difficulty adjustment allows miners to migrate from the legacy Bitcoin chain as desired, while providing protection against hash-rate fluctuations. (2018)

Difficulty Adjustment Algorithm (DAA) also provides utility in the Bitcoin cash of hash-rate fluctuation irrespective of the cause… so government crack-down is a reasonable threat model.

Answer 2:

Well… that’s just mining Bitcoin Cash. The utility of Bitcoin Cash is to expand in the coming months with the introduction of both this project and the Colored coins implementing being worked on by another team.

As an open-source software project Counterparty Cash wouldn’t be mining directly, but that said there is a reasonable case to be made that mining BItcoin Cash makes an increasing amount of sense if you are into or thinking of getting into mining in my opinion.

Answer 3:

There is a DEX (Distributed Exchange) as a native part of the Counterparty protocol. Other options in theory would include but not be limited to authoring smart contracts on ETH and interacting with the BCH chain and counterparty.cash XCPC protocol. I have only thought about this lightly - and there are bound to be specific complexities to overcome and trade-offs in doing this.

An area of express interest though - It would be worth looking at creating some reference examples later this year after the launch.

Thanks for the questions!!


#3

Hello I am Juan from Bitprim one of the Dev Teams behind BitcoinCash, we are also supporters from Bitcoin Cash fork from the early beginning.

Wish to endorse Julian answer

#1 BitcoinCash implemented a difficulty adjustment algorithm that performs very good to mitigate hashrate fluctuations, is implemented, it works very good and is proven under high fluctuations.

#2 Yes we are expecting a solid growth of Bitcoin Cash mining capacity from different companies investing heavy in mining just for Bitcoin Cash, and yes again this project and colored coins over BCH being developed by BU and Andrew Stone will increase the BCH blockchain value.

#3 Having a native DEX in place will attract lot of attention from companies in the BCH ecosystem, also Bitprim has an internal team very experienced in Smart Contracts and we did tools like blockdrome.com and if we have a platform that let us start developing smart contracts over BCH we are more than happy to just start bringing real world companies use cases.

Regards