The Bitcoin Cash (BCH) blockchain is now capable of tokenizing assets and running smart contracts.
Five Million Dollar Bounty
A $5,000,000 bounty (payable in BCH) had been put up by Coingeek in return for anyone who could provide an on-chain solution for BCH tokenization, and the prize has now been claimed by a team of researchers from Australia and Singapore.
According to today’s press release, the new features do not require any changing of the Bitcoin Cash code, nor do they require off-chain solutions, separate asset layers, or token burns.
Instead, all of the functionality is set to be compatible with the existing BCH protocol. According to one of the partners running the contest, Jimmy Nguyen of nChain Group, said:
“We have always believed the original Bitcoin protocol contains everything needed for BCH to become the new money and enable advanced programmable functions. Our technical review team was impressed by how ‘Team Tokenized’ used foundational elements in Bitcoin to deliver a technically comprehensive system which works.”
‘Team Tokenized’ is the collective name of the contest winners who solved the BCH-tokenization problem – made up by James Belding, Samuel Georges, Scott Barr, Farid Uddeen, and Brendan Lee.
Why Not Bitcoin Core?
According to Coingeek’s Calvin Ayre, the original Bitcoin infrastructure – which according to many is now better represented by Bitcoin Cash than Bitcoin Core – always had the ability for such features:
“The original Satoshi protocol already has everything it needed to create a digital currency and also enable advanced functions. We just needed to restore it and then scale it. This achieved, I urge all Bitcoin miners to run the new Bitcoin SV implementation of BCH.”
A whitepaper and source code are expected to be released in November, at which point the system will likely be rigorously tested by skeptics.
Assuming the new features are successfully implemented into the BCH blockchain, then it would only be natural to wonder… Why not Bitcoin (BTC)?
Several solutions have been offered for smart contract functionality on BTC, including RootStock (RSK) sidechains, and the MAD (Mutually Assured Destruction) Escrow service created by Particle.io.
However, both of these solutions require venturing beyond the original Bitcoin protocol. That may not be a problem for those who believe in the evolution of BTC, but it is also extremely worrying for those who believed in the original vision.
As of Wednesday afternoon the cryptocurrency market remains in stasis following the dip of October 29th.
Yet BCH did begin to show some upward movement as the news rolled out on Wednesday, with the coin price climbing from $411.52 up to $424.47 – a 3.14% leap, all of which arrived within the space of sixty minutes.
This was accompanied by a 20% rise in trade volumes as the daily total rose from $250 million to $300 million.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.