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.
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.
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, pymnts.com 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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Debbie Rasch1971 days ago
What are your plans for the Niv. Segwit2x hard fork? Will you support it?
Liz O'Donnell1970 days ago
Hi Debbie, please refer to this more recent post regarding the Segwit2x hard fork:
Zeke2058 days ago
Can I get my bit coin cash from fork or is Abra keeping it?
Max Dees2057 days ago
Thanks for reaching out.
As mentioned in the above blog post, Abra does not currently support the Bitcoin-Cash (BCH, BCC) fork. That being said, Abra never has access to your bitcoin or any new coins (like bitcoin cash) that might be available via a network fork. You are holding the keys to your bitcoin in your Abra app on your phone. If you want to split your keys onto two chains (bitcoin and bitcoin cash) you can simply withdraw your bitcoin to a wallet that is BCH-compatible. If you choose not to do this, then no one will ever access the bitcoin cash on the forked chain.
We may support BCH in the future, but no plans to do so at this time.
Bill Barhydt2065 days ago
Abra will remain open for “business as usual” with no service disruptions. You may continue to make deposits and withdrawals as you wish.
GYEONGJAE BAK2065 days ago
Is it impossible to withdraw now?