Ripple CTO Emeritus David Schwartz has entered the discussion regarding the cautious stance of major cryptocurrency exchanges, including Coinbase, toward listing Bitcoin BLAKE2b, a new asset forked from Bitcoin but operating on a distinct blockchain.
Debate over exchange support for Bitcoin forks
The debate was triggered when an X user questioned why leading exchanges such as Coinbase, Kraken, and wallet provider Trezor have declined to list Bitcoin BLAKE2b, despite previously supporting other Bitcoin forks like Bitcoin Cash and Bitcoin SV. In earlier fork events, these platforms had provided users the ability to claim and trade forked coins, leading to broad adoption and trading activity.
Bitcoin BLAKE2b operates on a separate blockchain and distinguishes itself by utilizing the BLAKE2b mining algorithm, as opposed to Bitcoin’s conventional SHA-256. By forking the network, it formed a new coin on its independent chain, similar to past forks but with different technical foundations.
Despite sharing some origins with Bitcoin, the response from exchanges and wallet providers to this fork has starkly differed from previous episodes. Many in the cryptocurrency community have called this stance inconsistent, particularly noting the support given to Bitcoin Cash and Bitcoin SV, which also launched as separate chains.
This divergence has raised concerns among users, with some perceiving the exchanges’ refusal to support Bitcoin BLAKE2b as unfair or at odds with their historical approach.
Schwartz points to security and engineering risks
David Schwartz responded to these concerns by emphasizing the technical risks involved with integrating newly forked assets. Schwartz, who played a key role in the development of Ripple, suggested that exchanges may be prioritizing user protection and taking time to evaluate potential vulnerabilities.
One major point highlighted by Schwartz is the importance of replay protection—a mechanism that prevents transactions intended for one blockchain from being valid on another after a network split. Without robust replay protection, traders could inadvertently lose funds or face transaction failures.
Platforms that choose not to list a new forked coin may be implementing replay protection to mitigate vulnerabilities, especially given the complexity of a new chain and the risk that users could lose their assets due to flawed engineering or insufficient security measures.
Schwartz noted that Bitcoin BLAKE2b, given its recent emergence and the technical transition from SHA-256 to BLAKE2b, could present engineering challenges that exchanges must assess before moving forward with listings.
Replay protection is considered essential when a blockchain split occurs, as it helps ensure that transactions performed on one chain cannot unintentionally affect another, thereby avoiding accidental fund transfers or security breaches.
Mini dictionary: Replay protection, a technique used in blockchain systems to stop a transaction broadcast on one chain from being valid on another, thereby protecting users from unintended duplicate transactions after a fork.
By comparison, Bitcoin Cash and Bitcoin SV had implemented such protective measures early after their splits, making it easier for major exchanges to support them from launch.
| Fork | Mining Algorithm | Replay Protection at Launch | Major Exchange Support |
|---|---|---|---|
| Bitcoin Cash | SHA-256 | Yes | Yes |
| Bitcoin SV | SHA-256 | Yes | Yes |
| Bitcoin BLAKE2b | BLAKE2b | Uncertain | No |
As exchanges and wallet providers continue to monitor Bitcoin BLAKE2b, users remain cautious about the asset’s future listing prospects and potential risks involved in trading across multiple forks.
