BCH Fork, Let’s Hash it Out [Update 11/19]
Update 11/19/2018: It appears two assets emerged from the Bitcoin Cash (BCH) hard fork. We are exploring the viability and appropriate handling of both digital assets before moving forward. KeepKey still highly advises against transacting BCH at this time.
Bitcoin Cash (BCH) is preparing to fork on November 15, 2018, at approximately 4:40 GMT (epoch 1542300000). KeepKey plans to continue support for sending and receiving BCH during the fork, but users will not be able to use the ShapeShift functionality until network stability has been ultimately determined. The ShapeShift blog will update within 48 hours of the fork for further details. KeepKey highly advises against transacting around the time of the fork due to the risks of replay attacks.
Bitcoin Cash (BCH) Fork
Just over a year ago, on August 1, 2017, Bitcoin Cash (BCH) hard forked from Bitcoin (BTC) with the intention of increasing block sizes and decreasing fees. Also known as BitcoinABC, Bitcoin Cash planned to fork every six months for protocol improvements. The development team for BCH is unable to reach a consensus on the software improvements for the upcoming fork. Due to the differing ideas, BitcoinABC and Satoshi Vision (BitcoinSV), BCH will hard fork and each side will have to hash it out to prevail as dominant.
As the fork occurs, users may be vulnerable to replay attacks when transacting BCH. Replay attacks occur when a user sends funds from one side of the fork and the network mirrors, or replays, the transaction on the other chain. In this scenario, if a user attempts to send BitcoinABC they may also inadvertently send BitcoinSV. If this happens, users lose the replayed funds and cannot recover them.
What does this mean for KeepKey & ShapeShift Users?
KeepKey will continue to support BitcoinABC but recommends all users to be secure and hodl their BCH until the network stabilizes. Hodling is the safest option and performing any other actions is at the risk of the user. In the event of a replay attack, we will not be able to help you recover your assets. Hodling BCH during the fork keeps the private keys safe and secure. Note: all other assets are fine to move during this period.
Though KeepKey will allow users to view, send, and receive BCH at the time of the fork, users will not be able to ShapeShift BCH. ShapeShift is deactivating trading to and from BCH four hours before the fork for security purposes. 48 hours after the new BCH rules take effect, ShapeShift will have more information on how they will proceed. You can read more about it here.
Will KeepKey Support both Sides of the Fork?
Similar to other forks, KeepKey will monitor both sides for viability. KeepKey ultimately aims to support all viable chains that result from forks of assets we support. Viability depends on hash power, adoptions by exchanges, and other mitigating factors. Stay tuned for a follow-up announcement after the fork.
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The KeepKey Team