we are going to talk about Bitcoin cash
Bitcoin cash is well known cryptocurrency in terms of the market capitalization.Today I will give you some background about Bitcoin cash
compared Bitcoin cash to Bitcoin.
Bitcoin first appeared almost nine
years ago and currently is getting a lot
of attention from the mainstream media
and big interest of retail investors
it's not only world,s first but also most
expensive and most popular
cryptocurrency that being said it's not
perfect.
one of the most biggest issues for
cryptocurrencies has always been its
scalability. Most specifically it's been
the size of the block of transactions
which was limited to one megabyte.This
limit caused a substantial delay in
transactions processing time and limits
the number of transactions the network
can process.Bitcoin cash was a different
thing. Itdiffers from the other version
which allowed to increase the block size
from one megabyte to eight megabytes. Its
overall goal is to increase the number
of transactions that can be processed by
the network hoping that the Bitcoin
cash will be able to compete with the
volume of transactions like industry
agiants PayPal and visa transactions per
second.Visa is able to process up to
24,000 transactions per second.But
average daily transactions is around
4,000 Bitcoin with the maximum capacity
of one megabyte per block size is able
to process three to seven transactions
per second.On the other hand bitcoin cash
with eight times larger block size is
able to process around 61 transactions
per second.
The story of hard fork Bitcoin cash was launched in August 2017 and
since became bitcoins most popular
cryptocurrency.
that has worked from the Bitcoin network.
The reason of this work is to increase
the block size and process more
transactions per second.On other hand
Bitcoin score one megabyte limit for the
size of every block was originally
implemented is to lower a possibility of
potential spam and security issues.As
Bitcoin grew more and more popular one
megabyte limit start causing blocks to
pile up which extended the transactions
time.
the situation got out of hand
around May 2017 when one user reported
that he was waiting for confirmation for
up to four days.Users had a chance to
pay high transaction fees to speed up
the confirmation. but this approach
basically prevent bit going to be
convenient payment method especially
when it comes to smaller transactions.
For instancea sandwich or a
cup of coffee with BTC just simply
wasn't working anymore as a three dollar
coffee will in queue transaction fee of
more than twenty dollars. And of course
nobody is going to do that.Bitcoin
communication came up with the possible
solution to this situation a segregated
witness or a segment a segregated
witness solution implied storing some of
the information in separate files
outside of the blockchain.developers
claim that it would free up a lot of
storage space the black will feed more
transactions and the confirmation time
will decrease significantly.team of developers decided to
abandon the sacred protocol and increase
the block size limit so 8 megabytes.As
such a drastic change required their
creation to split from the original
Bitcoin network. It was announced the
hard work will take place on August 1
2017 for those of you who don't know a
hard fork is the only currently known
method for developers to update Bitcoin.
software developers.
split the network and essentially create
a new block chain with a different rule.
The original and forked version of
cryptocurrencies have identical block
chains all the way up to the split
accurate from their own the two networks
exist independently after the split
happened.
Everyone who held bitcoins before the
hard fork received the same amount of
bitcoin cash tokens.The new
cryptocurrency was quickly adopted by
investors as by the end of his first day
bitcoin cash became third largest
cryptocurrency behind Bitcoin and
etherium.the Bitcoin cash is much
cheaper to use than Bitcoin a test
conducted in December 2017 showed the
Bitcoin cash transaction was 99 percent
cheaper than the equivalent transaction
on the original Bitcoin network..