Bitcoin's eCash hard fork gives BTC holders ECX, but trading options are thin
In brief
- eCash, a Bitcoin hard fork from Paul Sztorc's LayerTwo Labs, launched on Oct. 29.
- ECX balances equal to BTC holdings went to holders who controlled their keys at block 973,728.
- Five Drivechain sidechains went live with mainnet; two more haven't launched yet.
- NeoxEX opened ECX trading and CoinW plans a distribution; larger exchanges haven't widely listed it.
What eCash is
Sztorc's LayerTwo Labs developed eCash as a separate hard fork of Bitcoin. According to the source, it grew out of his frustration with what he called "complacency narratives" and "cult-like toxicity" in Bitcoin. He's advocated for Drivechains for more than a decade, and he believes Bitcoin's conservative development approach has held back its potential (those are his views, not established fact).
Drivechains are the main feature.
The system lets developers build independent sidechains without changing the base-layer protocol. According to the source, developers can try out applications for payments, privacy, digital assets and prediction markets, and miners can earn additional transaction fees. Five sidechains launched alongside mainnet: BitNames, BitAssets, Thunder, Truthcoin and zSide. Two more, the quantum-resistant Photon and the decentralized exchange CoinShift, haven't launched yet.
Claiming ECX
“If you held the keys to your BTC at that exact block, you now own the exact same amount of ECX,” LayerTwo Labs tells Magazine.
Self-custody holders need a wallet that supports eCash and have to follow its process to separate ECX from BTC, Cointelegraph Magazine reported. Because the two networks share transaction history, an unprotected transaction on one chain could be replayed on the other. LayerTwo Labs said replay controls are built into the protocol but advised holders to move their ECX before spending BTC.
People who keep BTC on a centralized exchange depend on that exchange for distribution. The source said they should check whether their exchange supports the fork or has announced an ECX distribution.
Where ECX trades
According to the source, ECX isn't widely available on larger crypto exchanges yet. NeoxEX said it opened native ECX deposits, withdrawals and trading on Oct. 29, with ECX/USDT, ECX/USDC and ECX/BTC pairs. CoinW announced plans to distribute ECX to eligible Bitcoin holders and said it would announce deposits, withdrawals and trading later.
The source also noted that Bitcoin forks can have tax implications, depending on the holder's country.
Frequently asked questions
Who received ECX in the eCash fork?
The eCash fork took place at Bitcoin block 973,728. Anyone who controlled their private keys at that snapshot received an ECX balance equal to their BTC balance, according to Cointelegraph Magazine.
What are Drivechains in eCash?
Drivechains are eCash's main feature. The system lets developers build independent sidechains without changing the base-layer protocol. Five sidechains launched with mainnet (BitNames, BitAssets, Thunder, Truthcoin and zSide), and two more, Photon and CoinShift, haven't launched yet.
Where can ECX be traded?
According to Cointelegraph Magazine, ECX isn't widely available on larger crypto exchanges yet. NeoxEX said it opened ECX trading on Oct. 29 with ECX/USDT, ECX/USDC and ECX/BTC pairs. CoinW said it plans to distribute ECX and will announce trading later.
What is the replay risk with the eCash fork?
The two networks share transaction history, so an unprotected transaction on one chain could be replayed on the other. LayerTwo Labs said replay controls are built into the protocol but advised holders to move their ECX before spending BTC.
