HandCash transitioning to Bitcoin SV - Official Statement
Dear HandCash users,
As you may already know, we spent a couple of weeks preparing HandCash with the anti-split mechanism described by Ryan X. Charles in an attempt to preserve unity between chains during the protocol upgrade. Read more here.
We believe in the idea of Bitcoin as world money, and splitting the ecosystem and the network effect is detrimental to reach that goal.
The unified coin proposal that many services (including ours) decided to follow has not worked as expected - hence the errors you might have experienced when sending and receiving transactions in the vast majority of the ecosystem.
The pro-ABC ruleset side did not work in a predictable and reliable manner during this upgrade period, making all of our efforts for containing the split in the short term futile.
In the light of current events, and with the necessity of keep providing a good user experience to our users, we decided to follow the Bitcoin SV ruleset exclusively for the following reasons:
- Honest Hash: miners on SV side are very invested in the future of the chain, and they have proven for months with their own mining facilities, recently reaching over 80% of the total hashpower. Once pro-ABC rented hashpower goes back to mining BTC, their network will be very vulnerable to attacks.
- HashWar is not over yet: It could take weeks or months, but based on hashpower and economic incentives, the SV ruleset is most probably going to be the imposed ruleset for BCH in the end, and we do not wish to change chains again. There is no technical indicator that points to another possible result.
- Patents: as you may know nChain invested in HandCash months ago. Part of the deal was access to their patented technology, and we believe it would be a BIG mistake and a bad business decision to give that up. We are building and plan to build incredible tools and apps for our customers, and these patents give us a huge competitive advantage.
- NOT a crypto company: Some of you asked us if we are going to support “both coins” in the case of a split. We would not. For the simple reason that we are not building multicurrency crypto products. We are building an ecosystem that allows for frictionless flow of universal cash, the concept we call “The New Money”. We chose BCH at the time because it made sense technically to do so, it was the best technology around. We don’t care about the ticker and never did - we just want a reliable and stable network that scales - but we are very focused on simplicity and having different coins is not an option.
- Value Proposition: The Bitcoin SV side is more aligned with us in terms of global adoption, keeping Bitcoin legal and innovating on top of the protocol - not messing with it and causing splits again and again. Moving forward we feel much more confident about this roadmap, than the one proposed by Bitcoin ABC.
This decision requires us to temporarily (less than a week) disable the use of the HandCash wallet while we make the transition to the new ruleset. It will only be possible to display your seed phrase and $handle meanwhile. We will issue updates during this week for our Android app.
In the case of a permanent split, rest assured we will issue some guidelines to do it safely. Keep in mind the protocol upgrade is technically still going on, and doing it now might result in the loss of your funds if one of the current split chain dies.
We decided to delay the iOS release until the dust settles so we didn’t have to worry about two apps at the same time during this upgrade period. Now that it is clear we will follow the SV ruleset, we plan to release it as soon as possible.
We strive to create tools and apps that create real value for businesses and users, and we will keep doing so, regardless of the ticker symbol.
We understand for some due to their ideology, emotional attachments or financial investments this decision won’t be easily digested, but if you believed in our work and supported us all this time, you know our mission is above which ticker symbol is used.
We will make sure you keep being proud of being a HandCash user regardless of what technology runs in the background.
The future looks brighter than ever.
Alex Agut, CEO HandCash
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