Difference between Bitcoin and Bitcoin Cash

Interestingly, while both these cryptocurrencies may sound similar, they are actually quite different. Let’s understand this difference in detail ahead.

1. Value of each investment

One apparent difference is that the price of Bitcoin is much higher than that of Bitcoin Cash. Although of course, for an investor, it's not the price that holds priority as much as if it is appreciated in value.

 2. Transaction cost and speed

 Bitcoin Cash, unlike Bitcoin, has a minimal cost of transaction and also transfers data faster. As a result, the cryptocurrency can be adopted by more people simultaneously. However the cryptocurrency does not hold as much consumer trust as of yet, as is enjoyed by Bitcoin.

3. Block Size

The maximum block size of Bitcoin Cash is 32MB as opposed to that of Bitcoin which is 1MB. This makes the cryptocurrency more scalable, giving it the ability to execute more transactions per second, minimizing its environmental effect, while also boosting its viability. 

 The cryptocurrency claims to hold the capacity of processing around 200 transactions per second, as a result minimizing the transaction cost. 

 4. Algorithm

 Compared to Bitcoin, Bitcoin Cash adopts a different hash algorithm. This algorithm dismisses the possibility of any replay among the two blockchains. The algorithm has set up a replay and wipeout safety mechanism in place, to prepare for the possibility of the bitcoin cash splitting in the future. 

 This has been done to ensure that in case any split takes place, both the chains can peacefully coexist without any hindrance caused to the involved parties. 

5. Smart contract support

 Bitcoin doesn’t support smart contracts, even though work is being carried out for helping to develop decentralized finance (DeFi) services for the cryptocurrency presently. 

 The Bitcoin Cash developers, meanwhile, can adopt smart contract language such as Cash Script for enabling further complex functions compared to the basic transactions which are possible through Bitcoin. 

 6. Token issuance

For issuing tokens through the Bitcoin blockchain, the projects have to make use of the Omni layer, which is a platform to create and trade custom digital assets and currencies. 

 In the case of Bitcoin Cash, meanwhile, the Simple Ledger Protocol (SLP) is adopted. The protocol enables developers to issue tokens through Bitcoin cash in a similar manner to the way tokens are issued on the Ethereum blockchain. The SLP protocol also supports non fungible tokens (NFTs), which can be differentiated from each other. Although, unlike their adoption on Ethereum and other blockchains, their adoption on Bitcoin Cash is limited.

 7. No 'replace-by-fee' feature

 Bitcoin (BTC) has a replace-by fee feature that enables unconfirmed transactions to be cancelled or double spent. The Bitcoin Cash (BCH) protocol’s clearing away this feature allows for the cryptocurrency to become more secure, since the unconfirmed transactions are irrevocable. 

 It also allows for prompt transactions of petite amounts. With its protocol upgrade from May 2021 onwards, the cryptocurrency’s unconfirmed chained transaction limit, that had initially been set at 50, was dismissed, with double spend tests being introduced.  

 This in turn, additionally boosted Bitcoin Cash's utility to serve as a payment solution in a scenario where a high-volume of small-value transactions are required to be processed in a limited period of time.

 Conclusion

Bitcoin’s universal acceptance as a payment form still remains a hot topic of debate, one that shows no signs of subsiding. Ofcourse, the use and popularity of Bitcoin keeps expanding at a steady rate, with investors wishing to derive perks from its widespread adoption. 

In spite of its slow rate of transactions, Bitcoin is still viable for cases in which the speed is not pertinent, like in case of real estate purchase. We’ve now got plenty of leading companies that are using solutions to enable everyday purchases through Bitcoin. 

Bitcoin Cash, on the contrary, still remains an unfamiliar concept beyond the cryptocurrency world. Yet it is a preferable option when it comes to instantaneous transactions, specially for meager amounts. The role that this cryptocurrency takes up in the future still remains to be seen. 

what do you think which coin you choose ?

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