SmartBCH will be huge for BCH, this is why!

The long-awaited moment has arrived, in a few days or a few weeks from now, the SmartBCH mainnet will be launched. This will be a huge impact on the Bitcoin Cash network.

I have been following the development of the SmartBCH team from the telegram group discussion and the web forum, and through the discussion, in these areas, the most anticipated launch will be sooner than expected. And that will have a huge impact on the Bitcoin cash system as a network and currency. I’m more excited about the launch, its timing seems to be getting better and better. If the market is stable and capable of a previous launch while BTC is still weak, this could start at a time when everyone is looking for a good market signal, and that BCH is actually a powerful hybrid for bitcoin and ethereum, very well they can enjoy taking market share, and getting ahead of the FUD and meme hype train.

Smartbch aims to build a new platform for the Bitcoin Cash ecosystem and expand the user base. That is adoption for BCH and much more the utility of BCH as a token.

SmartBCH will be a mover of people into the Bitcoin cash ecosystem, with Defi-related Ethereum applications, this will be a cross from Ethereum to BCH, and using SmartBCH Defi programs, a user first requirement is to acquire some BCH. I had to constantly change my BCH to other tokens to participate in a smart contract and use Defi platforms. The process of exchanging other BCH to other tokens often comes sometimes, with unimaginable costs on most exchange platforms. With SmartBCH that will no longer be the case, we will have smart contracts, Defi applications, and much more built into the Bitcoin cash network.

With SmartBCH, smart contracts and application fees for Defi will be much lower and less than $ 0.05 for standard transactions and will make it possible to use Ethereum based tokens but at a lower cost, SmartBCH will bring Defi to Bitcoin Cash which will create more financial opportunities for everyone.

Gas fees have been a hell of a problem using Defi-based Ethereum applications and smart contracts. As SmartBCH enables existing tokens on the Ethereum network to run on the BCH network, most users working on Ethereum based DApps now have low-end applications to use and make huge profits. This will facilitate BCH adoption and, tokens from the Ethereum network must need to be converted to BCH before they can be sent to any application on SmartBCH. This is where SmartBCH becomes unique, creating a bridge between Ethereum and Bitcoin cash. That will make it easier for users to move Ethereum-based tokens over the Bitcoin cash network at a lower cost.

The big rumored money we have heard coming to the Bitcoin cash network must be from the launch of SmartBCH. More BCH will be mined due to the high demand for use in SmartBCH applications. That’s where the money will come from, and you know what that means for everyone in the Bitcoin cash community. More money means more value for BCH.

SmartBCH will be a win-win for all, both developers, DApps users, and everyone who Hodl BCH in their wallets.

There is something different about SmartBCH that will bring value to BCH as a token. This was the first time I had ever heard of a token burning. SmartBCH will use a tokens burning method called proof of Burn. This means that the BCH will be burned.

What makes it necessary to burn BCH? There are some interesting reasons why:

Proof of burn POB is a unique way of achieving consistency in a distributed network. It requires users to burn part of the coin to gain it. It is a blockchain-based approach that aims to connect one blockchain to another with energy efficiency, by ensuring that costs are incurred by "burning" a coin by sending it to an unspendable wallet.

Proof of the Burn will reduce the number of tokens in circulation.

I was curious about this aspect of this consensus and tried to understand it better. My friend @Telesfor gave me a brief description of it. Here is what he wrote;

The burning of BCH is to be used to reduce the total amount of BCH in circulation, making BCH scarcer and more valuable. It will work as follows: to use SmartBCH, BCH will be exchanged for SmartBCH tokens (I assume the token will be called SmartBCH) through a gateway 1:1. Once BCH has been exchanged for SmartBCH, the BCH can no longer be used on the Bitcoin Cash network. It can only be used on the SmartBCH network. The sum of all BCH would then have to be calculated like this: BCH from the Bitcoin Cash network plus SmartBCH token from the SmartBCH network. Gas fees are paid for transactions on the SmartBCH network (just like on the Ethereum network). The difference to Ethereum is that half of the gas fees are burnt and no longer made available to the network. This means that there will be fewer and fewer SmartBCH tokens. If you add up the BCH from the Bitcoin Cash network and the available SmartBCH tokens, the total will be less and less over time. So BCH (and SmartBCH token, because it will always be worth the same as BCH) will become more and more valuable.

The need for a central economic concept that gives value to a particular asset, in this case, BCH. Remember that the total amount of BCH is constant and fixed at 21 million. If demand increases, prices will also increase, as there is a limited amount of BCH in circulation. Similarly, if BCH supply continues to fall due to burns, then prices will go up. The burning of tokens reduces the total amount in circulation because it is deliberately destroyed. This is an effective way to increase and strengthen the price of tokens. Economic rules clearly state that reducing market supply makes a product more valuable!

Another thing to know about the coin-burning mechanism is the protection against spam in the network, that's SmartBCH. It works as natural security against network attacks, and prevent spam from blocking the network.

The system works this way. The user sends the BCH in a smart contract to the SmartBCH chain, the method generates the cost of doing the work, part of the sent BCH is automatically burned. In this way, small miners are needed to verify transactions.