bitcoin forks
Education, News

Addressing a Potential Bitcoin Fork

Please note that this is a highly technical update regarding the near term future of the bitcoin network. You do not need to understand the content of this article to continue to use Abra. This article is merely intended for the Abra users who wish to understand Abra’s policy regarding how we will support the Bitcoin network under various technical upgrade scenarios in the future.

Abra is completely committed to ensuring that, you, our customers are in control of your own digital currency. Our belief is that third parties should not manage your digital currency; you should. To that end, we want you to be aware of potential future events that may impact your ability to transact and manage your bitcoin correctly using your Abra wallet App on iPhone or Android.  If you utilize Abra by holding fiat currency, ie. hedged bitcoin, you’ll likely never even notice that a network change has occurred.  If you’re using Abra to hold bitcoin, ie. not fiat, then there are instances where the scenarios described below may apply to you.

There are several potential technology changes, upgrades and hard forks being considered by various bitcoin network constituents. This linked article provides a fairly comprehensive overview of these changes and analyzes what may happen under each scenario.

While Abra has shown public support for the SegWit upgrade to Bitcoin as well as the currently pending SegWit2X plan to implement both SegWit along with a base block size increase to 2MB, we will ultimately support the Bitcoin blockchain representing the longest chain with the most historical hashing power and difficulty associated with it.

Should Segwit2X fully activate, you will likely not notice any change during the first phase in August which is simply the activation of Segwit. Phase 2, which will likely occur in November, will be a hard fork in the Bitcoin blockchain to a full 2MB base block size.  

We will provide further updates as we approach the November hard fork should it appear that the Segwit2X hard fork has a chance to activate. It is likely that no action will be required on your part, although we will notify you regardless as to whether any actions will or won’t be required on your part.

Lastly, there is a competing proposal for a User Activated Hard Fork (UAHF) to activate on August 1. The UAHF is incompatible with the current bitcoin ruleset, including Segwit, and would create a separate blockchain. Should UAHF activate on August 1, Abra will not support the new blockchain. If you wish to support the UAHF you should withdraw your bitcoin from Abra at least 24 hours before August 1.

About Abra

Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.

Why Abra

Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.

How Abra Protects Your Funds

Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.

Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.

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