Reasons Behind The Origin Of Bitcoin Cash

If you're crypto follower and a read cash member then I think you all know Bitcoin Cash (BCH) a very well know as well as popular cryptocurrency. In this article I'll explain the reasons behind the birth of Bitcoin Cash.

In 2009 there was a beginning of crypto era. Satoshi Nakamoto developed a cryptocurrency, today we all know that cryptocurrency as Bitcoin(BTC). In beginning there were very few people interested in this new currency but after some period people started to realise the potential. As the number of interested people increases there's increase in bitcoin holders and payment transactions. But there's one issue, Bitcoin's transaction speed was 7 transactions per second which is very low where as visa performs 24,000 transactions per second. To tackle this transactions issue there's discussion regarding some reformations to allow Bitcoin to scale further.

Why Not Just Increase Volume Of Transactions ?

Increasing the number of transactions would brought multiple vulnerabilities, such as security, network crash and many more.

Let's understand this using an example of traffic :

If you're living in crowded cities then you've definitely seen the traffic issue. If I'll say if government increases the speed limit will it solve the traffic issue ? No !! It'll create more problems like safety. There'll be increase in accident cases and people will get injured. Along with these, there'll be no small vehicles on roads as they're slow, so there'll be only big & powerful vehicles on the road.

The same problems would be created if the volume of transactions were increased. More transactions brings more data processing, so small nodes will not be able to process this big amount of data which will throw them out of the network, which will create a big hole in decentralised network.

But still problem had to be solved somehow

To solve the issue Bitcoin was split using a process which is know as "Hard Fork", which created new version of bitcoin which we today know as "Bitcoin Cash". The new version of Bitcoin i.e Bitcoin Cash still uses the same codebase as that of previous version of Bitcoin, but there was increase in blocksize to 8mb (Bitcoin has blocksize of 1mb at that time now it's 2mb). Due to this increment in blocksize, it allows Bitcoin Cash network to perform two million transactions per day !!

After this 'hard fork' the bitcoin was cloned by the new coin bitcoin cash (BCH) previous bitcoin holders get the same amount of BCH coins in their cloned wallet. Did these bitcoin holders got both Bitcoin & Bitcoin Cash to spend ? No, the BCH was stored in cloned wallets that means if someone sent their bitcoin then the same amount will be deducted from his/her BCH wallet.

So the main reason behind the origin the origin of Bitcoin Cash is the issue of transactions !!

Bitcoin cash is indeed a next version of Bitcoin, it solved many bitcoin network problems mainly transactions and transaction fees. Bitcoin Cash is still in it's early stage, the community is growing rapidly. Thousands of people are adopting Bitcoin Cash, thousands of vendors accepting Bitcoin Cash in their physical as well as online stores. Today you can buy lots of services and products using Bitcoin Cash. The future of Bitcoin Cash is bright, the time will tell !!

I would really like to get feedback from BCH supporter @tula_s Your feedback on this post will definitely help me to improve my articles in future.

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