Bitcoin cash is the revolution taking the world by storm let's learn about how to use it and how it works.
Let's learn it from Lisa and Jason.
Scenario:
Lisa makes a payment of $10 to Jason, her payment is zapped across the Bitcoincash network in seconds.
So let's take a close look at how this all happens.
Lisa signs her payment with a special encrypted signature. The payment is added to a batch of other payments, this batch is called a block.
The block is then added on top of a stack of blocks and this is called the blockchain.
The blocks that are added must follow strict rules
For example:
They cannot include payments that try to spend money without the owner's signature so if the block fits the rules it will be added to the blockchain
If anyone tries to tamper with the blockchain everyone knows about it that the deeper the block is in the blockchain the more secure it is to even attempt to reverse just the latest block will require wasting over a hundred and thirty million dollars of hardware.
What is a blockchain?
It's a ledger of all Bitcoin payments that have ever happened. So who are adding these payments to blocks and blocks to the blockchain? Miners.
Why miners are important?
Miners are extremely important and they wear many hats, they are given a computational puzzle to solve by the network and must perform many calculations to find a solution. If a miner finds a solution before anyone else they're given some Bitcoin cash. As a reward, miners are incentivized with these rewards to continually support and secure the network.
As the network and the usage of BCH grows, so does its value and this attracts more miners, this means that difficulty needs to be adjusted accordingly. This also controls the rate of creation so that the value of each coin cannot be artificially deflated like with real gold mining operations over time it gets more and more difficult to find gold to excavate the miners all need to agree upon and enforce a set of rules for Bitcoin cash in doing so they act as judges for each other and the network.
If a miner rejects the rules of the other miners they will be ejected from the network and will lose money. A block that follows all the rules agreed upon by all the miners is added to the blockchain for securing the network processing transactions and following the rules, miners receive some Bitcoin cash.
As a reward the final role the miners play is to be bookkeepers miners receive the payments users want to make miners check payments and then put them in a block ready to be published to the blockchain. If the miner wins a block then they get to add their block to the blockchain pulling it all together.
Payment via Bitcoin Cash
When you make a payment with Bitcoin cash the payment is sent to all the miners. The miners race to solve the puzzle and the winning miner is allowed to add their block to the blockchain and is then rewarded by newly mined Bitcoin cash and the fees you paid for your payment. The recipient of your payment now has their money.
So, what really is Bitcoin cash?
It's a global digital currency that allows you to pay anyone anywhere at any time for less than one cent, it is financial freedom for the whole planet and it belongs to everybody.
Bitcoin cash is the future of money!
Nice blog and nice sum-up on a crypto I did not know very well BEFORE read.cash