The integration of smartbch with Bitcoin Cash is one of the most interesting concepts in the crypto space in recent times. We cannot say how many people are involved in smartbch projects at the moment, it may be too early to say that the influx of new people will change how the Bitcoin cash network works, and the impact on its price. But it can be.
The smartBch network is a sidechain on the Bitcoin Cash network that makes it easy for anyone to make and manage digital assets based on the Bitcoin Cash blockchain. SmartBch is a tool that allows anyone to create or distribute assets through smart contracts based on their terms. This makes it easy for users to create their own token.
It is clear that DeFi and smart contract projects make for the best investment in the crypto space; we have seen many DeFi-related blockchain projects generate more benefits. In terms of data and observations, we believe that Bitcoin Cash Network is currently experiencing growth since the launch of smartBCH six weeks ago. However, we cannot determine what level of impact smartBCH has had on the BIcoin cash network and the BCH price so far.
Although it is still too early to judge, there are three key areas we would like to explore the impact that smartBCH has had on the Bitcoin cash network coming to this moment.
BCH adoption
Obviously, this is where we should see smartBCH as an important element in the Bitcoin Cash network. SmartBCH projects have the potential to provide more volume that can create increased BCH acceptance and introduce BCH to the general public.
First, some smartBCH projects work together to make smartBCH better. For example, Benswap is an exchange with a Defi platform for staking and farming that makes money for investors. Benswap has partnered with $Cats project developer, to promote EBEN and $Cats by running a give away promotional event outside the Bitcoin Cash ecosystem. This development looks like an open door for smartBCH to access the external crypto space faster than we can imagine. User's numbers are already increasing dramatically in response to this announcement, and cryptocurrency investors and traders outside the Bitcoin Cash ecosystem are turning to this event.
However, we cannot call all of these activities as acceptable yet because human nature is unpredictable. People are the only people who want a place to line up in their pocket, it can only be accepted when most of these people live with BCH.
On-chain activities
Undoubtedly, since the launch of the smartBCH Network, BCH on-chain operations have been greatly affected by the large and small BCH amount moving from boitcoin.com wallet to COinFLeX and finally to the metamask wallet where it can be used in any of the smartBCH projects. This to me, is by no means a on-chain aactivities, because BCH moved from the bitcoin.com wallet was never deposited in another BCH wallet but in Ethereum Wallet. In this case, BCH must first be converted to SEP 20, Ethereum enables token using the CoinFleX bridge or other available bridges. This means a chain exchange transaction, and chain operations are sprint.
SmartBCH may be side chain on the Bitcoin Cash network, but its projects are more connected to Ethereum than Bitcoin cash. Unless there are some things I don’t know about this thing called on-chain activities, and again, I an not writing from a technical point of view, but on my own perspective and understanding of how smartBCH works. Metamask is a traditional Ethereum wallet with defualt, until it is able to receive and bring back the BCH at the same time without initiating a conversion, that may not have a significant impact on the activities of the bitcoin cash chain.
Price impact
Has smartBCH affected the price of BCH so far? Surprisingly, that's where I found things very confusing. Like many other people, it was thought that the introduction of smartBCH would cause the price of BCH to explode. I believe that there has been a lot of money coming into the BCH market in recent time, but this money never remain on the BCH network. So it has no price effect.
Traditionally, all altcoin is tied to BTC, whenever BTC increases, same with altcoins prices. We saw this in May this year when BTC started to break free to touch 60k, BCH lifted and reached 1.6k at that point. Earlier last month, the same week that the smartBCH was launched, BTC was at 50k while BCH reached $800, it's amazing to see BTC break new all time high at $ 62,491 at the time of writing, while BCH sits at $ 612.40.
We thought that more people entering smartBCH would lead to higher price disruptions to BCH, but that is not the case. From the above it is clear that smartBCH has so far not had much effect on the price of BCH. However, it is too early to conclude because the smartBCH is still young.
Conclusion
We cannot tell how things will be in the next couple of months, we believe that smartBCH is a disruptive innovative system that will lead to BCH exponential growth. A more core areas of futher development on the smartBCH Network would be; increase in transaction speed, lower transaction fees, a stable and easy to use bridge, and more users.
As always, an enlightening article for BCH enthusiasts. Well, I'm not really sure about the sidechain effects of a blockchain.
Now, it is desirable to enhance interoperability, and this is the future. So SmartBCH is a step in the right direction.