Bitcoin Cash the next crypto future!

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1 year ago

Bitcoin Cash is not Bitcoin. Their history is also the history of Bitcoin, because until August 1, 2017 they were the same cryptocurrency: Bitcoin Cash is the first direct fork of Bitcoin. This means that the local code of the first blockchain and its transactions were cloned to some extent—specifically, up to block number 478,558. From there, a new blockchain with different rules was created, and thus a new computerized currency apart from (and not in place of) Bitcoin.

 The offer of Bitcoin Cash is written in its name (cash money): to be a much faster payment method than the original Bitcoin. In order to meet that goal, its developers decided to make a significant increase in the size of the blocks of the original network, going from 1 MB to 8 MB and from there to the current 32 MB.

 To understand why exactly this was the chosen option and why a new cryptocurrency had to be generated instead of implementing the same measure in Bitcoin, we must review the background that led to this result.

 Origins and history

Satoshi Nakamoto built the first blockchain with 1 MB of capacity per block, which would allow only about 7 transactions per second. From the beginning, it was known that this would be a rather transitory capacity because, as more people used the network in these conditions, the speed would decrease and the commissions would skyrocket. And that was exactly what happened.

 Already in 2016, the scalability (growth) problems in Bitcoin were becoming more and more noticeable. The adoption of the currency began to multiply, resulting in a significant slowdown in the network. During one of the busiest weeks in its history, there were even tens of thousands of transactions pending confirmation. This gave rise to the so-called "commission market": many users had to pay a higher amount of commission to the miners, in order to see their transaction confirmed as many risks as possible. If it was decided to pay the lower amount, it was possible that the transaction would remain days on hold or not be carried out at all. Thus, small transactions became impossible, since each movement could exceed 15 dollars.

 Something was more than clear: Bitcoin had to scale, its capabilities had to be improved as risks to be able to continue working with a city chairman number of users. The entire community agreed on this, but the how soon divided it.

 Divided community

The Bitcoin Core developers maintained their position on task due to two factors: the flexible blocks proposed by Unlimited had not been sufficiently tested, therefore, implementing the proposal would not be very secure for the network; and increasing the size of Bitcoin blocks would lead to centralization, since more sophisticated equipment would be needed to support them. That way, a few companies could come to control the cryptocurrency.

 For their part, from Unlimited they also stood firm, claiming that SegWit would only be a temporary solution and not a definitive one. Everything pointed to a hard fork that would divide the Bitcoin network, miners and nodes, creating an additional cryptocurrency with which price, community, and credit would be shared, as happened with Ethereum.

 To avoid this scenario, around 58 companies in the ecosystem, including such big names as Blockchain, Bitmain, Coinbase and Circle, reached a new agreement in May 2017: to activate SegWit, but followed by a hard fork that would increase the block size. to 2MB. This proposal was SegWit2x and, in the end, it would not be realized.

Fight over the name of Bitcoin

Even though, from the very beginning, Bitcoin Cash was considered an altcoin and was far from competing with Bitcoin for miners and nodes, its developers tried to legitimize it as the "real Bitcoin", and even kept the unique White Paper of the first cryptocurrency. On your page as if it were from Bitcoin Cash.

 As it says on its official site:

 Bitcoin Cash offers a strong currency to the world, fulfilling the initial promise of Bitcoin as user-to-user electronic money (…) Bitcoin Cash is usually represented by the symbol BCH and is considered by its supporters to be the legitimate continuation of the Bitcoin project as computerized money from user to user. It would lead to centralization, since more sophisticated equipment would be needed to support them. That way, a few companies could come to control the cryptocurrency.

 For their part, from Unlimited they also stood firm, claiming that SegWit would only be a temporary solution and not a definitive one. Everything pointed to a hard fork that would divide the Bitcoin network, miners and nodes, creating an additional cryptocurrency with which price, community and credit would be shared, as happened with Ethereum.

 To avoid this scenario, around 58 companies in the ecosystem, including such big names as Blockchain, Bitmain, Coinbase and Circle, reached a new agreement in May 2017: to activate SegWit, but followed by a hard fork that would increase the block size. to 2MB. This proposal was SegWit2x and, in the end, it would not be realized.

Fight over the name of Bitcoin

Even though, from the very beginning, Bitcoin Cash was considered an altcoin and was far from competing with Bitcoin for miners and nodes, its developers tried to legitimize it as the “real Bitcoin”, and even kept the unique White Paper of the first cryptocurrency. On your page as if it were from Bitcoin Cash.

 As it says on its official site

Bitcoin Cash offers a strong currency to the world, fulfilling the initial promise of Bitcoin as user-to-user electronic money (…) Bitcoin Cash is usually represented by the symbol BCH and is considered by its supporters to be the legitimate continuation of the Bitcoin project as computerized money from user to user.

 

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