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Bitcoin SV strong fork will prevent BitGo users from receiving funds

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The next strong fork of Bitcoin SV, scheduled for February 4, 2020, will disable the receipt of funds in the BSV wallets of BitGo, a company dedicated to the custody of cryptocurrencies. The startup informed that the change of consensus in the network will cause the Pay-to-Script-Hash (P2SH) outputs to be invalidated.

An engineer of the company, identified as Murch, published an article this Tuesday, December 17, in which he warns that after the fork, the portfolios they cannot receive funds, but they can spend.

The developers of the Bitcoin Satoshi’s Vision (BSV) protocol have programmed the Genesis hardfork for February 4, 2020. This change of consensus rule will make Pay-to-Script-Hash (P2SH) outputs invalid. Since BitGo BSV wallets use multi-signature addresses based on P2SH, the protocol change will make BitGo BSV wallets unable to receive funds.

Once the strong fork is made the majority of portfolio functions will be disabled. However, the developer said that funds that are kept in the wallet without being spent can be sent.

BitGo recommends that its users with Bitcoin SV take one of two possible forecasts: convert the funds to bitcoin (BTC) or move the funds to an external portfolio with support for BSV.

P2SH standard

The manufacturer of cold wallets Trezor define the P2SH standard as an advanced type of transaction used in Bitcoin, and other similar cryptocurrencies, which allows the sender to commit funds to a hash of a valid script. Currently its use is common for multi-signature transactions and non-native SegWit, the company highlights.

For comparison, Trezor offers support for P2SH when it comes to P2WPKH-en-P2SH and multi-signature-in-P2SH scripts, other versions are not processed.

According to the website "Learn me a bitcoin", P2SH was introduced as a standard script in April 2012, which allows "blocking bitcoins in the hash of a script, and then provides that original script when unlocking those bitcoins."

Custody service

BitGo was authorized in the United States, in September last year, to offer cryptocurrency custody. Since then it has become in one of the largest BTC custodians in the market. Even in November this year, the company said it was processing 20% ​​of Bitcoin transactions.

February will be the second strong fork of Bitcoin SV in seven months after a hardfork was executed in July of this year to extend the block size limit to 2 GB.

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