This article covers the following:
- What is Bitcoin Cash?
- How did Bitcoin Cash come about?
- Is Bitcoin Cash different from Bitcoin?
- What’s in store for Bitcoin Cash?
Bitcoin Cash (BCH) is a "Peer-to-Peer Electronic Cash" system that is also well known as the first cryptocurrency to fork out of Bitcoin.
Bitcoin’s original protocol averaged roughly 2000 transactions per block (every 10 minutes), which is only about 12000 transactions per hour. As the blockchain grew in popularity over time, this output was unable to keep up with the growing number of transactions. It became evident that solutions for the scalability and efficiency of Bitcoin and blockchain technology were needed for mass adoption to happen.
Bitcoin Cash emerged with the core belief that the increment of the size of blocks is the solution to resolve these issues.
During the crypto boom in 2017, there was increasing dissatisfaction with the classic BTC because of the extremely long transaction times and higher cost.
This led to the proposal of two solutions. The first solution was to lessen the amount of data to be verified. The second solution was to increase the average block size to have more information processed at once.
The Bitcoin Cash community firmly believed in the increment of block sizes, but the Bitcoin Core team blocked the proposal because they felt that it went against the original vision of Satoshi Nakamoto – the creator of Bitcoin.
A few members of the community felt that the rejection of the proposals was favoring those who see BTC as a digital investment as opposed to a transactional currency. As a result, the original Bitcoin chain was split into two and Bitcoin Cash emerged; This split is also commonly known as a fork.
Bitcoin Cash (BCH) is fully supported on Coinhako, this means that you can buy, sell, swap, send and receive BCH at Coinhako!
Yes, BCH is a cryptocurrency that is the first fork of BTC. You can think of “fork” as a software upgrade. This fork meant that anyone who owned BTC as of block 478558 received an equivalent amount of BCH.
BCH has an 8 MB block size, compared to BTC’s 1 MB block size. This means that in theory, BCH should be able to process more transactions per second than BTC.
In 2018, it subsequently split into two cryptocurrencies: Bitcoin Cash ABC and Bitcoin SV. These forks’ main differences also hinge on the block size and reimagining of certain codes in the network.
To know more about the different Bitcoin Cash forks, you can read here.
Like many other forked chains in the market, Bitcoin Cash was created with the vision of improving blockchain technology. While there is still much to be done before we can decisively choose a 'winner', Bitcoin Cash is constantly updating its protocol to test out new concepts.
Up till 2020, Bitcoin Cash has had protocol upgrades twice a year and we can expect many more interesting changes to come.
You can view Bitcoin Cash's Whitepaper to learn more about the digital currency
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