Bitcoin Faces Hard Fork on September 1 with BLAKE2b Mining Switch
Bitcoin is facing a hard fork on September 1 after a breakaway chain was proposed by Luke Dashjr. The new chain will use the BLAKE2b proof-of-work algorithm, which existing mining hardware cannot run.
This move is intended to remove ASICBoost, an efficiency technique that Dashjr argues favors large miners. He claims it will give miners another chance at decentralized block construction through CONVOY.
Dashjr has resigned as chairman and chief technology officer of OCEAN, a Bitcoin mining pool, after its hashrate fell 96% in August. The departure followed an incident where OCEAN routed customer power to a minority chain for 18 hours, prompting miners to demand leadership changes.
Bitcoin holders face replay risk and uncertainty over which chain their wallet software follows if the fork activates. Dashjr advises them to use a light wallet rather than a full node. The new network's value and security will be determined by markets and miners.