Bitcoin Cash

What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) was developed as hard fork from the main Bitcoin (BTC) blockchain. His peer-to-peer (P2P) electronic cash system that offers fast transactions with low fees. The system is completely trustless, allowing users to send BCH to each other directly, without any third-party intermediaries such as central banks.

Bitcoin Cash is one of the most successful Bitcoin hard forks. It follows a modified version of the Bitcoin protocol that introduces a significantly larger block size. In 2018 and 2020, it underwent two more hard forks, splitting into Bitcoin Cash. Bitcoin SVand Bitcoin ABC (now eCash). The goal of Bitcoin Cash is to increase the everyday utility of cryptocurrencies.

How was Bitcoin Cash developed?

Bitcoin Cash was not created from scratch like many blockchains. Instead, it resulted from a hard fork—a change in the network protocol that splits one chain into two. In 2017, the Bitcoin community was divided into two groups: those who supported moving to larger block sizes, and those who wanted to stick with smaller blocks..

The hard fork event was centered around Separate Witness (SegWit) Bitcoin blockchain update. Some users have found that this update is not effective enough to resolve network size limitation issues.

The Bitcoin fork was supported by community members who advocated for a larger block size. There is no one entity at this time, but instead it has been a group effort. The hard fork officially occurred on August 1, 2017, at block number 478559. After the split, each Bitcoin holder received an equal number of Bitcoin Cash coins.

Given the frequent price fluctuations of BCH, it can be considered a volatile asset. However, compared to Bitcoin, this cryptocurrency is much cheaper. For a more detailed analysis of the differences between BCH and BTC, see the comparison section below.

Bitcoin Cash’s volatility has been noted in its market performance. At the end of December 2017, the price of BCH rose sharply from $1,300 to $4,355. However, a month later the cost had dropped to about $2,000. Since then, there have been several similar, albeit smaller scale, market fluctuations.

What are the main features of Bitcoin Cash?

As with the original Bitcoin protocol, the number of BCH coins has a hard limit of 21 million. Given the deflationary supply, the price of Bitcoin Cash is expected to rise as the resource becomes more scarce. The issue is planned to stop at 20,999,999.9769 BCH.

Bitcoin Cash is decentralized and uses a Proof-of-Work (PoW) consensus mechanism to create new blocks. Each block has a higher storage capacity for transaction information compared to Bitcoin.

An increased block size means that network nodes require more space to store blockchain data. In addition, audit processes in this network are also more expensive. The additional costs associated with storage and auditing may be one of the reasons why this cryptocurrency is not as popular despite BCH’s comparatively lower price.

Bitcoin Cash provides secure and confidential transactions using CashFusion. This is a privacy solution makes it difficult to track all network transactions by mixing them up. The mixing process requires additional costs. All transactions can take place regardless of the location of the sender and recipient.

Bitcoin Cash is mainly used for digital payments. Fees can be as low as $0.01, and the large block size allows for faster processing of financial transactions. Given the high transaction speed and low fees, this cryptocurrency can be used to make small payments for goods and services.

Another common use of Bitcoin Cash is peer-to-peer transactions. As an open network, Bitcoin Cash allows direct transactions that are recorded on the chain and are immutable. BCH is not subject to government regulation, and assets cannot be frozen or confiscated due to the decentralization of the network.

How is Bitcoin Cash different from Bitcoin (BTC)?

Bitcoin Cash was the result of a hard fork and runs on a separate blockchain from Bitcoin itself. As a result, two separate cryptocurrencies emerged – the original version of Bitcoin and the new coin Bitcoin Cash. For the purposes of the fork, the BCH crypto protocol was changed.

The main difference between Bitcoin and Bitcoin Cash is related to transaction capacity.. All information regarding transactions on the chain is recorded in blocks. Initially, the size of one BCH block was 8 MB. However, it was later increased to 32 MB. This makes the block size significantly larger than Bitcoin’s 1MB.

The increased block size allows for faster transaction speeds and lower transaction fees. This also makes the new blockchain more scalable. This has been seen as one of the biggest advantages of the BCH coin, as scalability issues can hinder BTC’s growth.

The price of Bitcoin Cash is generally subject to market trends, which are driven by Bitcoin as the largest cryptocurrency in the world. Although the BCH coin is cheaper, there is a significant difference in market capitalization between the two assets.

What is the difference between Bitcoin Cash and Bitcoin SV (BSV)?

In 2018, there was another hard fork involving Bitcoin Cash. In this case, the Bitcoin Cash community split from the Bitcoin SV group due to different approaches to block sizes. SV stands for Satoshi Vision, which refers to the creator of the original Bitcoin blockchain. Satoshi Nakamoto.

Proponents of the SV group believed that Bitcoin Cash was beginning to deviate from Bitcoin’s original mission. The Bitcoin Cash/Bitcoin SV hard fork resulted in the latter network adopting a block size of 128 MB.. This is the main difference between each Bitcoin network involved in hard forks.

Unlike Bitcoin Cash, Bitcoin SV is a token because it does not operate on a separate blockchain. It also adheres to other key aspects of the original Bitcoin protocol, such as the Proof-of-Work consensus mechanism and the hard cap of 21 million tokens. Since then, the BSV block size has been increased several times and as of June 2022 it is 4 GB.

Compared to BSV, the price of Bitcoin Cash is higher. However, BSV is a more volatile asset. Overall, these two assets rank relatively similarly in terms of market capitalization.

What is the difference between Bitcoin Cash and eCash (XEC)?

2020 marked the next significant hard fork of the Bitcoin Cash blockchain, leading to the creation of Bitcoin ABC (BCHA). The fork occurred at block #661647. In July 2021, BCHA was renamed eCash (XEC).

XEC runs on its own separate blockchain. The new network has introduced an 8% commission on newly mined coins, which is redistributed to the BCHA development team. The decision to redistribute part of the assets to the fund’s development wallet was not received positively by the community, which led to a split in the network.

One of the biggest differences between Bitcoin Cash and eCash is that the latter uses Proof-of-Stake (PoS) as its consensus algorithm.. This makes the platform more energy efficient. After rebranding, the conversion rate of BCHA:XEC was 1:1000000. XEC’s total supply is capped at 21 trillion.

Bitcoin Cash’s crypto performance so far has been more impressive than its new branch. BCH maintains a higher market capitalization.