The harmonization of Bitcoin and Ethereum. Bithereum aims to do what no other hard fork has done, by fusing the visions of both Bitcoin and Ethereum, ultimately revolutionizing mining, improving scalability, and increasing network consensus.
Prior to shifting to Proof-of-Stake, BTH will begin mining through a Proof of Work algorithm, a democratized mining structure that will bring mining back to the people.
Rather than relying on one solution, BTH utilizes a multitude of scaling solutions including PoS mining, Lightning Network, and Segregated Witness, all the while exploring the future roadmap of Ethereum.
Blockchain is built behind the idea of a consensus network and the divide within BTC has hindered this. PoS mining once again prioritizes consensus in the blockchain.
Speed, efficiency, security. Enter Proof-of-Stake: Ethereum’s answer to todays mining issues. PoS is a transaction validation method that allows users to stake their holdings to participate in mining. Simply put, it eliminates the need for expensive hardware, mitigates high energy costs, and increases the network security, making it the ideal form of mining.
Bithereum will be a coin that benefits both chains, becoming the first hard spork of its kind. Bitcoin will first be hard forked to make changes to the protocol that will allow it to be a superior form of peer-to-peer currency, while Ethereum will be hard spooned by taking a snapshot of the existing account balances of ETH holders to reward them in Bithereum. As BTH utilizes a significant portion of Ethereum's vision, unlike all of the other BTC forks, we will also be awarding all ETH holders with coins, giving them the ability to stake their coins in the future as well.
Increased block-size as an on-chain scaling approach, creating scalability for world wide usage and growth.
Lightning Network increases transaction speed by moving transactions off chain into channels which report back to the main chain periodically. This process clears up more space, allowing a greater amount of data to be stored on each block, reducing transaction times while also lowering transaction costs.
A complete two-way replay protection mechanism will be implemented to ensure that holders transact on the correct chain.
The hard fork will occur on or around block 550,500, or mid-November. Exact block number and date/time will be revealed soon when we are on Testnet.
The total supply of Bithereum will be around 31 million coins to account for the total BTC supply plus additional coins to account for ETH holders. This amount will be subject to change based on the ETH to BTC ratio at the time of the snapshot. For example, the supply will be increased if the ratio becomes more favorable for ETH when the snapshot is taken and vice versa.
Both Bitcoin and Ether holders will be able to redeem Bithereum through two varying methods.
The snapshot on or around block 543,000 will essentially be the cut-off for capturing existing wallet balances for both chains. Bitcoin holders will then be able to redeem BTH at a 1:1 ratio with BTC.
Since BTH will start out as a direct descendent of BTC, all BTC holders will be able to claim their BTH in the same way they would with any other hard fork of Bitcoin. To get started with obtaining BTH, it is advised that all BTC holders should move their BTC to an entirely new wallet as this prevents any scenarios where coins are lost by spending on either chain. With the Bitcoins safely moved to a new address (created after the spork block) the private key associated with the old BTC wallet can be exported and then imported into a Bithereum wallet. With the BTC holder's old BTC wallet imported into the BTH wallet client, a BTC holder will be able to see how much BTH they have based their BTC balance prior to spork block.
Bithereum will introduce a mechanism that will give both BTC and ETH holders the ability to redeem BTH regardless of which chain their holdings reside on and with minimal work for each holder. Since we will be utilizing a significant portion of Ethereum’s vision, we want to give Ether holders the ability to stake their coins in the future as well. All ETH will be redeemable at a price ratio of ETH:BTC at the time of the spork (i.e if the ratio is 10:1 and you have 10 ETH, you can redeem 1 BTH.)
To ensure redemption of BTH as an ETH holder, one must send a 0 (zero) ETH transaction to our ETH Redemption Smart Contract with the public key to their newly created Bithereum wallet in the data field. For anyone with ETH in multiple wallets, this process must be repeated for each address, however you can provide the same Bithereum address in the data field for the corresponding BTH to be released into the same wallet.
The ETH redemption smart contract pairs your ETH address to your BTH address and is referenced by the Bithereum oracle after the fork. The Bithereum oracle triggers the issuance of BTH from the ETH holder BTH allocation generated from the Bithereum genesis block.
Once an ETH address has gone through the redemption process, it will be removed from Bithereum’s oracle that includes each ETH address in existence prior to the spork block, along with the balances. This is so that no address can be redeemed more than once. For transparency purposes, Bithereum will provide the public address of the wallet that will be containing the total supply of BTH coins for ETH holders (around 10 million). This address will never be touched by the Bithereum team, and will reduce in holdings as people redeem their respective BTH.
After the snapshot, your options to acquire it will be to buy it on an exchange like any other cryptocurrency, to mine it with your own computer hardware (GPUs), or to earn it by trading your goods and services for it. We will release a post with further details and instructions for redemption via a Medium blog as we reach closer to the date of the spork.
Note: If you move your ETH into a different wallet after you send the zero ETH transaction, you will need to repeat this process. After the snapshot is taken, the current balance in the original address through which the zero ETH transaction was sent from would no longer be reflective of the actual wallet’s balance. Therefore, a new zero ETH transaction will have to be done to update the current address that contains your holdings.