@Adeilton_Filho 21 January 2025

Bitcoin Cash: A Journey from CashTokens to VELMA (2023-2025) The recent history of Bitcoin Cash (BCH) is marked by a series of revolutionary updates that have completely transformed its capabilities. From the introduction of CashTokens in 2023 to the highly anticipated VELMA update in 2025, BCH has demonstrated a consistent commitment to innovation and technological development. The Foundation: CashTokens (2023) The journey of modernization for BCH gained momentum in May 2023 with the implementation of CashTokens, a groundbreaking update led by developer Jason Dreyzehner (Bitjson). This update transformed BCH into a comprehensive platform for digital tokens, offering: https://x.com/bitjson?mx=2 **Fungible Tokens**: Enabling the creation of interchangeable assets, similar to Ethereum's ERC-20 tokens. **Non-Fungible Tokens (NFTs)**: Allowing the creation of unique digital assets. **Low Operational Costs**: Maintaining BCH's characteristic low fees. **Censorship Resistance**: Preserving the decentralized nature of the network. The Consolidation: Jessica (2024) The Jessica update further expanded the capabilities established by CashTokens, focusing on the scalability and security of the network. Activated on May 15, 2024, this update brought fundamental changes to BCH's infrastructure. The main highlight was the implementation of the Adaptive Block Size Limit Algorithm (**ABLA**), an innovation that allows for automatic adjustment of block size according to network demand. Key Achievements of Jessica: 1. **Dynamic Scalability**: ABLA revolutionized how BCH handles peaks in demand, enabling automatic and efficient adjustments to block size. This ensures that during high transaction volumes, the algorithm calculates network capacity and increases the block size accordingly, preventing congestion while maintaining low fees. When transaction numbers are low, the algorithm reduces block size to ensure quick and efficient processing. 2. **Historical Correction**: An economic vulnerability that had persisted since 2010 and contributed to the BCH/BTC split in 2017 was resolved. This correction significantly strengthened network security, eliminating the possibility of double-spending attacks, a vulnerability still present in Bitcoin Core. 3. **Performance Optimization**: Improvements to the protocol resulted in faster transactions and reduced costs, making BCH more competitive in the cryptocurrency market while retaining its fundamental characteristic as a digital currency.

The Future: VELMA (2025) The next major update, VELMA, represents the natural continuation of this evolution. Again under the leadership of Jason Dreyzehner, who has already proven his expertise with the success of CashTokens, VELMA promises to revolutionize the BCH network even further. Scheduled for release on May 15, 2025, VELMA (Virtual Machine Limits) introduces two main improvement proposals. What is a Virtual Machine (VM)? A Virtual Machine (VM) is an execution environment that simulates a computing system, allowing for the isolated execution of code and smart contracts. In the context of Bitcoin Cash, the VM is responsible for processing transactions and executing scripts that define the rules for how these transactions should be conducted. The efficiency and limits of this VM are crucial for the network's ability to support complex and innovative applications. CHIP 20215 - Revolutionizing VM Limits 1. **Modernizing Satoshi Nakamoto's Limits**: When Satoshi Nakamoto created Bitcoin, he established limits to ensure the security and efficiency of transactions. Over time, these limits have become restrictive. The proposed modernization aims to adapt the system to current needs, enabling the network to support more complex applications. 2. **Increasing Stack Element Limit**: The stack is a data structure that temporarily stores information during function execution. The stack element limit will be increased from 520 to 10,000 bytes, allowing for more complex operations without exceeding limits. 3. **New Security Controls**: The update introduces new security controls for operations, hashing, and stack use, helping to prevent vulnerabilities and attacks. 4. **Elimination of Operation Code Limit**: Removing the 2011 limit will allow developers to create longer and more complex operation codes, expanding the network's functionalities. CHIP 2024-47 - A New Era of Computing 1. **Removal of 64-Bit Limitation for Calculations**: This limitation restricts the amount of data that can be manipulated in calculations, posing an obstacle for applications requiring high precision. Its removal will enable more complex and precise calculations, essential for financial and scientific applications. 2. **Support for High-Precision Mathematical Operations**: Fundamental for DeFi protocols and other applications that require transaction precision. 3. **Enhancements for DeFi Protocol Development**: Improvements will allow for the creation of new, more complex, and efficient DeFi protocols. 4. **Implementation of Privacy Solutions and Zero-Knowledge Proofs**: Zero-knowledge solutions allow one party to prove possession of information without revealing it, enhancing transaction privacy. 5. **Integration with Quantum-Resistant Cryptography**: As quantum computing advances, traditional cryptography may become vulnerable. Integrating quantum-resistant cryptography will ensure security against future technological advances. For more information on these challenges, click here to read another article. https://read.cash/@Adeilton_Filho/the-quantum-revolution-in-cryptocurrencies-bch-in-the-spotlight-6a147be4

The Architect of Change: Jason Dreyzehner It's important to highlight Jason Dreyzehner's fundamental role in this evolution of Bitcoin Cash. As the lead developer behind the CashTokens and VELMA updates, his vision has been crucial for: https://github.com/bitjson Establishing a robust infrastructure for digital tokens (2023) Developing innovative solutions for smart contracts Promoting a more accessible and free financial system Ensuring continuity and coherence in BCH development Looking to the Future The developer community can already experience VELMA's functionalities through the test network (chipnet), paving the way for a new wave of innovations. The update will be celebrated at the second annual Bliss conference in Ljubljana, Slovenia, marking a historic moment for the BCH ecosystem. The Impact on the BCH Community The Bitcoin Cash community's response to the Jessica and VELMA updates has been notably positive, demonstrating strong support for the ongoing development of the network. Community engagement has manifested in various significant ways: Reaction from Developers and Users The community's enthusiasm has translated into concrete actions. Developers and enthusiasts have extensively shared their experiences and expectations on major crypto discussion platforms. Social media and specialized forums have seen a significant increase in technical discussions about the new features. Innovation and Development The developer community has shown particular interest in the new possibilities opened by the VELMA update: **DeFi Exploration**: Developer groups are already designing new DeFi protocols that leverage the expanded limits of the virtual machine. **Privacy Solutions**: The implementation of zero-knowledge cryptography has attracted developers focused on privacy solutions. **Quantum-Ready Applications**: Discussions about developing applications resistant to quantum computing have gained traction.

Feedback and Collaborative Development The community has maintained a constructive approach to the development process: 1. **Active Testing**: Developers are intensively using the test network (chipnet) to experiment with the new features. 2. **Collaborative Documentation**: Initiatives to document and share experiences with the new features are emerging. 3. **Improvement Proposals**: Constructive suggestions from the community are being considered for future updates. Events and Networking Community engagement extends beyond the online environment: **Bliss Conference**: The event in Ljubljana, Slovenia, promises to be a milestone in BCH history. **Regional Meetups**: Local communities are organizing meetings to discuss implementations. **Online Workshops**: Educational sessions for developers and users about the new functionalities are being held. The Legacy in Progress The sequence of updates—CashTokens (2023), Jessica (2024), and VELMA (2025)—represents more than just technical improvements. It demonstrates a consistent plan for the evolution of Bitcoin Cash, transforming it from a simple cryptocurrency into a comprehensive platform for: Developing decentralized applications (DApps) Implementing innovative DeFi solutions Creating and managing digital tokens Supporting complex and secure financial operations To sum up The evolution of Bitcoin Cash since 2023 showcases an inspiring commitment to innovation and sustainable development. From the groundbreaking foundations laid by CashTokens to the exciting future possibilities ushered in by VELMA, BCH is not just adapting—it's thriving! This journey of continuous reinvention highlights its unwavering dedication to accessibility and decentralization. As we look ahead, the potential for Bitcoin Cash to reshape the financial landscape is more promising than ever, inviting both users and developers to be part of this transformative movement. Together, we can embrace a future where financial freedom and technological advancement go hand in hand!