What is the eCash Bitcoin hard fork announced by Paul Sztorc?

Bitcoin developer Paul Sztorc announced a new hard fork of Bitcoin called eCash, expected to launch in August. The fork will create a separate blockchain with its own rules, while copying much of Bitcoin’s existing codebase. It will function as a competing layer-1 network.

How will Bitcoin holders receive eCash tokens?

Sztorc said Bitcoin holders will be able to exchange their BTC for eCash at a 1:1 ratio once the fork goes live. This suggests a snapshot-style distribution, where holders can claim equivalent balances on the new chain. However, the exact mechanics and adoption will depend on exchange and wallet support.

What makes eCash different from previous Bitcoin forks like Bitcoin Cash?

Sztorc emphasised that eCash is not branded as “Bitcoin,” unlike Bitcoin Cash, which emerged in 2017. He claims eCash aims to fix Bitcoin’s limitations through scaling and privacy features. However, like past forks, it still faces the challenge of gaining user and developer adoption.

What technology will eCash use at launch?

The eCash chain will run on a near-copy of Bitcoin Core and use the same SHA-256 hashing algorithm. It will start with lower mining difficulty to encourage early participation. This means miners can more easily secure the network in its early stages.

What are “drivechains” and why do they matter for eCash?

eCash will include seven layer-2 networks called “drivechains,” designed to increase transaction throughput and enable optional privacy features. These are separate chains linked to the main network, allowing experimentation without changing the base protocol. This could make eCash more flexible than Bitcoin’s current design.

Why is the eCash proposal controversial within the Bitcoin community?

The proposal has drawn criticism, especially around the plan to reassign some of Satoshi Nakamoto’s 1.1 million BTC to early investors. Critics argue this undermines Bitcoin’s core principles of immutability and fairness. Others question whether another fork can realistically compete with Bitcoin’s dominance.

How are Bitcoin advocates reacting to the eCash fork?

Reactions have been mixed to negative, with some prominent voices dismissing the project’s long-term viability. Critics argue the fork lacks strong justification and could fragment the ecosystem further. Supporters, however, see it as an attempt to address Bitcoin’s scaling and privacy limitations.

What problem is eCash trying to solve for Bitcoin?

Sztorc argues that Bitcoin’s current tech stack is lagging, particularly in scaling and privacy. He believes solutions like the Lightning Network have not met expectations. eCash aims to offer faster transactions and more flexible features through its layered design.

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Paul Sztorc unveils Bitcoin eCash hard fork plan

Written by Isaac FrancisPublished Apr 25, 2026, 12:00 AMLast Updated Apr 24, 2026, 11:22 PM

Bitcoin developer Paul Sztorc announced a new hard fork of Bitcoin called eCash, which is scheduled to be deployed in August.

The proposed fork will create a new layer-1 blockchain with seven layer-2 “drivechains,” designed to improve transaction throughput and introduce optional onchain privacy features.

Bitcoin holders will be able to exchange their BTC for eCash at a 1:1 ratio once the fork goes live, Sztorc said.

“Unlike BCH, the 2017 fork, there is no ‘Bitcoin’ in the name,”

Said Paul Sztorc.

The eCash chain will run on a near-copy of Bitcoin Core software using the same SHA-256 hashing algorithm, but with reduced mining difficulty to encourage early participation.

Sztorc said the fork would also “manually” reassign a portion of Satoshi Nakamoto’s estimated 1.1 million BTC holdings to early investors, a move that drew criticism from parts of the Bitcoin community.

The proposal has triggered debate over Bitcoin’s future, with some advocates questioning its viability and others pointing to ongoing concerns around scaling, privacy, and the performance of the Lightning Network.

At the time of reporting, Bitcoin price was $77,388.45.

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Paul Sztorc unveils Bitcoin eCash hard fork plan

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