We want to inform you today about upcoming events and the measures we’re taking to get ready for a possible Bitcoin hard fork.
What’s been happening?
The Bitcoin network has been experiencing issues lately. One of critical network restrictions (1 Mb block size limit) has turned out to be insufficient for current user requirements. Transaction speed has decreased, transactions are getting stuck, time is being wasted.
People aren’t happy, and a new project called Bitcoin Unlimited has arrived, aiming to remove the only centralized point of control in the Bitcoin economy – the block size limit. Some network parties (nodes) aren’t showing any interest in Bitcoin Unlimited. But more and more nodes are beginning to support it and getting ready to operate according to its new rules. They can become the majority.
Is it something like Ethereum Classic?
The situation is not clear, but it could become something similar to Ethereum and Ethereum Classic. It means that in all likelihood, major changes are coming up. Here’s one of the possible outcomes: the BTC network may split into two separate networks: “usual” Bitcoin (BTC) and Bitcoin Unlimited (BTU). Two independent coins, sharing the same past. That is called a hard fork.
How does it affect me?
If you possess bitcoins, in case of a hard fork followed by a split you are entitled to the same amount of Bitcoin Unlimited.
What does HitBTC do?
HitBTC cares about the safety of your funds and aims to provide you with the tools for avoiding any risk. Here’s our plan:
- We credit all our respective Bitcoin holders with the same amount of Bitcoin Unlimited. If you deposit bitcoins to your account, you receive both BTC and BTU at the same time.
- We introduce a BTU/BTC trading pair, so it’ll be possible not only to store new coins on your account, but trade them as well.
- We block BTC withdrawals temporarily. Why? Splitting one coin in two contains the risk of so-called replay attacks. In a nutshell, an attacker is able to carry off BTU coins while withdrawing BTC. It takes time to protect the network from replay attacks: 48 hours max from the start of the hard fork, but probably less. As soon as we make sure that your funds are safe, withdrawals will be unlocked.
- We keep dialog open with our community. Should the hard fork not take place before the established deadline, a survey will be arranged. We will let our users decide what to do next.
Any number of bitcoins deposited or already in your possession will be augmented by the same amount of BTU. This is effective from now until the hard fork, if it happens.
BTC and BTU withdrawals are locked. This is in effect from now until 48 hours after the hard fork. We care about the safety of your funds.
The BTU/BTC trading pair is at your disposal.
Show me how it works
You initiate a BTC deposit, and BTU deposit is created at the same time:
The Latest transactions section: