Wormhole apparently launching on Bitcoin SV ‘soon’

“For the good of the coin.”

When Wormhole.cash launched in August, it promised to be a game changer that would allow any group or person to create a token that could represent bonds, stocks, loyalty points, and even fiat. But when the facts were revealed, it was found that the project co-developed by Bitmain Technologies and supported by Bitcoin ABC was nothing but a nefarious plan that strips away the very heart of not just Bitcoin Cash—but the entire cryptocurrency ecosystem.

Then came November and the scheduled protocol upgrade of the Bitcoin Cash network, which also saw a hash war being fought with miners voting between the Bitcoin SV (Satoshi Vision) and Bitcoin ABC implementations of the BCH protocol. And, lo and behold, Wormhole is apparently “coming to Bitcoin SV soon.”

Not much is known about this project supposedly based off Bitcoin SV. On GitHub, the team behind this project said they are “launching soon,” noting that “our fork of Wormhole is in active development.”

According to the team, “While this was a somewhat contentious addition to Bitcoin Cash, our small group of developers sit squarely between supporting Wormhole and supporting Bitcoin SV, big blocks, along with following the insight and strength of Satoshi’s Vision. While many, including Satoshi himself, feel that burning BCH to create WHC is a problem. We feel there is much to be explored in launching Wormhole on Bitcoin SV and look forward to working with BitcoinSV in creating Wormhole on Satoshio’s [sic] Vision of Bitcoin.”

It would appear that the Wormhole SV team doesn’t really understand the original Satoshi Vision for Bitcoin—a blockchain with a protocol that is stable, scalable, secure and enables safe, instant transactions.

The original Wormhole project, which emulates Ethereum (ETH), will result in the Bitcoin Cash network turning into a developer’s playground, opening the system up to a whole host of troubles by turning the ever-watchful eye of securities regulators and government agencies towards Bitcoin Cash. We explained how Wormhole will destroy Bitcoin BCH in depth here and here.

And now we have Wormhole SV promising to be “for the good of the coin.” So again we ask: with Wormhole coded to be able to control and ultimately destroy the network, how can we call it “peer-to-peer electronic cash”?

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Dr. Craig Wright explains crypto burning and why it needs to stop

Dr. Craig Wright has offered a piece on Medium that discusses digital token burning and how it can negatively impact the cryptocurrency industry. The piece provides a solid argument against burning, backing it up with a significant amount of data that shows the perils of the activity to the long-term stability of cryptocurrency.

Burning is a process that sends cryptocurrency tokens to an address that can never be used or accessed. There are a number of reasons why a certain blockchain ecosystem might consider burning coins, but the end result is the same – to try and create value in the remaining coins. However, what is going to happen, as Wright points out, is that the usefulness of the cryptocurrency is diminished.

Some like to make it appear that burning is backing. This is a fallacy that was created by those who don’t understand the financial implications of cryptocurrency, whose only function was to be used as cash. According to Wright, “In Bitcoin, the idea is that you “back” a token by destroying bitcoin. What is not considered is that you BACK a security using a redeemable item. That is, if you have a gold-backed note, you have the gold in a safe to be redeemed on demand. You cannot create a gold note by taking gold and throwing it into an active volcano to be consumed, or by using energy to [atomically] convert that gold to lead.”

A cryptocurrency name only gives an easy way to classify the underlying digital currency – no one would want to have to talk using 16-or 17-digit numbers all the time. But that number represents, in fact, the actual composition of the cryptocurrency ecosystem. Changing that composition changes the crypto’s foundation, which, of course, isn’t possible. When the foundation is changed, the cryptocurrency no longer exists; it becomes another digital currency.

Asserts Wright, “The first thing for developers to learn; you cannot add more [B]itcoin. Yes, you can code more numbers, just as you can alter the text in Hamlet. But, just as changing an author’s text makes it no longer the original, altering the number of individual tokens in Bitcoin means it is no longer Bitcoin.”

Nowhere has the confusion between burning and backing and adding or subtracting been more evident than with the creation of Wormhole. As Wright points out, “In burning [B]itcoins, a system such as WHC (Wormhole) takes Bitcoin, and uses this to mislead users who think they are being backed to receive a token that is on a separate chain that is completely unrelated to Bitcoin. This is a SHAM or a common ‘bait and switch’. The purchaser of a WHC is misled into believing they receive a WHC that is ‘backed’ by a BCH token. The truth is that WHC is a one-way function. It is not backed at all.”

This distinction is important because, as the cryptocurrency ecosystem changes, some are willing to attempt to introduce new traits that take away from the entire value of the cryptocurrency. It’s important that developers remember what purpose cryptocurrency was designed to address and concentrate their efforts in ensuring that vision – and not their own – is fulfilled.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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The issue with Wormhole, summed up in one sentence

There has been a raging debate on a topic that has caused a significant divide in the Bitcoin BCH community. A contentious project has been launched that was purported to be an advance for the network. However, when the facts are revealed, what emerges is a nefarious plan that strips away the very heart of not just Bitcoin BCH, but the entire cryptocurrency ecosystem.

The project is Wormhole, a Bitcoin BCH smart contract platform. It has been co-developed by crypto mining giant Bitmain and is supported by Bitcoin ABC. According to the platform’s developers, “The Omni Layer runs on top of Bitcoin blockchain — Since the Omni Layer protocol uses the MIT license (open source), we forked the Omni Layer protocol and implemented the tech feature on Bitcoin Cash blockchain to achieve token issuance. We named this technical solution Wormhole protocol, and the original token in the protocol is named Wormhole Cash.”

The issue at hand is that it the project actually creates a new cryptocurrency that will turn the Bitcoin BCH network into nothing more than a veritable playground for developers. This could potentially lead to questions being raised about Bitcoin BCH’s security and causing the regulators to drop the hammer on the digital currency’s network.

Wormhole, according to a post by developers on Medium, can also “execute the issuing, transferring and burning of tokens. Since Wormhole is a protocol for BCH but operating separately from BCH, it uses an account/balance model that was best suited for a smart contract. Thus, we can successfully resolve the fundamental issue in BCH’s UTXO model.”

In order for a burn to take place, a special burn address needs to be created and this presents another problem—you can’t actually back anything in a burn. This means that the Bitcoin BCH sent to the burn address would become invalid. Burning implies a destruction of the asset, which makes any return on the asset worthless.

If those issues weren’t enough to cause people to question the legitimacy of Wormhole, a phrase hidden in the project’s white paper is the nail in the coffin. Developers acknowledge, in black and white, that they want to be able to manipulate the network. The white paper reads, “In the future, if any methods be used to create the private key of this address – the BCH protocol might prohibit coins in this address from being transferred.”

This shows that the developers are not thinking decentralization—the heart of cryptocurrency—and are fully prepared to wield their power over the network. They have also coded Wormhole to allow them to assert their control on a whim.

Elsewhere in the white paper, Wormhole developers make the claim that Wormhole can provide greater decentralization and independent outputs. However, given the fact that they have coded Wormhole to be able to control the network, where exactly is the decentralization?

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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