Following Mojang's acquisition by Microsoft, Minecraft Java Edition is still in operation. Bedrock Edition was created to integrate with Microsoft's account system, but Java has been operating on its own Mojang account island until now. Java Edition will soon require a Microsoft account to play however, you'll still receive an unpaid cape to help you with your issues.
You'll have to transfer your Java or Mojang account to the Microsoft account system by the beginning of 2021. Mojang says this is primarily to introduce two-factor authentication in order to provide increased security, though it'll also bring better parental controls, chat and invitation blocking and account integration with Minecraft and Minecraft Dungeons.
Mojang has no plans to alter Minecraft mods or PvP. Java and Bedrock will continue to be entirely separate games. While you'll be able to use your Java username, you'll have to change your username if you sign up with an account with a Microsoft account. You can combine your Minecraft sign-ins if already have an existing Microsoft account.
Mojang has announced the cape, which was previously the most exclusive Java Edition item: to facilitate the transition. Participating in Minecraft hunger games servers will get you a free cape. While it will not have the Minecon exclusive designs but it will allow everyone to feel a bit royal.
While nothing immediate is changing however, players have some concerns, including the fact that Microsoft's stricter terms of service might make bans more frequent, and could lock some gamers out of access to Minecraft.
Further details can be found in the official announcement and FAQ. We'll see how this shakes out in the first quarter of 2021.
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