On November 15th, 2018 a scheduled update of the Bitcoin Cash network (a “hard fork”) will take place. The upgrade will result in a divergence between the underlying consensus rules (“ruleset”) in the software governing Bitcoin Cash nodes. This divergence will result in two or more ledgers being created within the same BCH network. CoinGeek and nChain (running the Bitcoin SV ruleset), miners with significant hash rate within the Bitcoin Cash network, are threatening to launch a sustained 51% attack against the miners who have chosen to run the ruleset implemented by Bitcoin ABC, Bitcoin Unlimited, and other major Bitcoin Cash software implementations. If carried out, this attack (and any resulting counterattacks) could create significant instability network-wide. Some exchanges and wallet service providers have chosen to pause operations on the Bitcoin Cash network while this instability persists. CoinText, to provide the best possible service to our users, has decided to take the following actions.
- All CoinText BCH access numbers will remain fully available to users.
- CoinText will read from the blockchain as it exists on nodes running Bitcoin ABC and Bitcoin Unlimited.
- CoinText will broadcast transactions so that those transactions have the highest probability of being accepted by nodes running every ruleset and mined into every blockchain on the network
An event like the one poised to occur on November 15th has never occurred in the decade that Bitcoin has existed. It is nearly impossible to predict precisely what the outcome will be or how long any instability will last. The safest behavior during this time is simply to hold your BCH funds in any wallet for which you control the private keys (for info on obtaining private keys for your CoinText wallet, please visit https://cointext.io/en/keys/). Any funds not moved after November 15th will be secure on all BCH blockchains and will be safe to move when there is clarity and stability in the network.
Letter From CoinText Founders
CoinText is a for-purpose company. That purpose is providing maximum financial sovereignty for the maximum number of people. We believe Bitcoin is mankind’s greatest tool for giving individuals maximum control over their financial existence. Bitcoin draws its value and strength from the trust that users place in the network, a network designed to ensure the existence of a global, immutable ledger. The security of the Bitcoin ledger comes from a system of design that minimizes the ability for any actor within the network to change the ledger in a malicious or dishonest manner. As Satoshi Nakamoto wrote in the Bitcoin white paper:
“The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes.”
Today, we are facing an unprecedented situation in the decade since Satoshi released the white paper and, subsequently, the Bitcoin client software. With the purpose of dictating the direction of the development of the Bitcoin Cash network, Coingeek and nChain are threatening to launch an attack against honest nodes running on Bitcoin Cash. They are threatening to maliciously alter the ledger of any nodes running Bitcoin ABC and Bitcoin Unlimited, among others. These software implementations were the first to implement the Bitcoin Cash ruleset and have provided stability and functionality for Bitcoin Cash as the network and community pursued the goal of massive on-chain scaling.
Bitcoin Cash transactions from CoinText are structured in a way such that they are compatible with all existing and future BCH software implementations. We have no reason to take sides in the approaching conflict based on a preferred development path for Bitcoin Cash client software. However, because we believe that in order for BCH to be valuable, the network must be secure, we cannot support a malicious attack against honest nodes on the Bitcoin Cash network, no matter the supposed justification. We express our support for miners who honestly use their hash power to secure the network and not to attack it. We believe that two or more divergent blockchains can exist on a single network in peace, providing redundancy and increased security to merchants, consumers, application developers, and exchanges. We suggest CoinGeek and nChain not to take the path of malicious attack. Such a path will surely lead to reduced overall trust and, by extension, reduced value for the Bitcoin Cash network.
Chief Technology Officer