What is Bitcoin Cash?
Bitcoin Cash emerged as an alternative to Bitcoin, and is currently among the third and second most valuable cryptocurrencies in the world by market cap, after Bitcoin and Ethereum. The founder of Bitcoin Cash formed Alternative Cryptocurrency on August 1, 2017 to address the annual time of transactions and the increase in fees on the original Bitcoin network. Bitcoin cash increases the amount of transactions that can be processed per block.
In this "What is Bitcoin Cash" guide, we will discuss the history of Bitcoin Cash, its current status, and how to compare it with the original Bitcoin.
Problem: Why creat bitcoin cash?
It's no secret that Bitcoin has a scaling problem.
As the currency has gained popularity, so has the number of transactions that take place on the networks, and Bitcoin is currently pushing the limits of its software.
The main problem is that Bitcoin imposes a hard limit on the size of a block, where the transfer information is stored. Currently, Bitcoin blockchain blocks are limited to 1 MB.
Why limit the number of processed transactions on the Bitcoin network?
Well, using a controversial interpretation of Bitcoin, every user on the network must download and keep a copy of the entire history of Bitcoin transactions. Allowing unlimited transactions will mean that the account will grow exponentially and ordinary users will not have to have computing storage or bandwidth to use the network.
If unlimited transactions are allowed, Bitcoin will become the domain of a few centralized organizations with enough processing power to handle thousands of new transactions every second.
Bitcoin has been created to avoid centralized institutions, it is not an interesting option.
The 1 megabyte limit of block size in the current position means that the transaction lease does not get too big too quickly. New users can easily join Bitcoin by downloading the transaction history. However, this block limit also means that there is more demand for transactions in which block locations can be compared to all of them.
As a result, Bitcoin mining fees are being charged and included to prioritize your transactions. If you decide not to pay the fee in November 2015, it will take more than 2 hours to fully confirm your transaction.
These fees and confirmation times also seem to be the opposite in terms of the democratization of Bitcoin. For Bitcoin, the payment of fees from mining does not seem to be much different, although the fees are variable and generally lower than a bank transfer.
The founders and community of Bitcoin Cash believe that a block size limit is required, but the 1MB limit is unique. Instead, they offer a system of 8 MB block size, but it is still reasonable for new users to download but not enough that the new system can hold the number of transactions per second many times as the original Bitcoin blockchain!
Hard Folk: Bitcoin options and a divided community
Before deciding to create a new currency, the people behind Bitcoin Cash applied to increase the original Bitcoin community in block size. Those who are in favor of growth have rapidly opened up great opportunities and room for Bitcoin users.
However, there was a lot of opposition to the expansion, which would result in miners missing out on transaction fees, resulting in a reduction in the overall mining of blockchain and consequently a reduction in safety. Competitors also believed that increasing network capacity would raise storage, bandwidth, and computing requirements beyond the reach of the average user.
The two camps reached a slight conflict in the form of BIP91 and Sigrated Witnesses, but the argument of increasing the size of the block has dragged on for more than two years with upgrades aimed at reducing the amount of information needed within the block.
Eventually the two camps decided to part in the form of a hard shoulder on the bitcoin network.
The original Bitcoin will exist with its 1MB block limit. In addition, a new bitcoin option, with pronounced bitcoin cache, will be created with an 8MB block limit. A hard fork bitcoin cash keeps the same transaction history as bitcoin until the moment of the shoulder. Before you owned Bitcoin on the hard shoulder, you continued to own that bitcoin, but you now receive the equivalent of a Bitcoin cash token on the new shoulder.
Although technically almost identical, the two networks are not interchangeable
Bitcoin Cash Fix and the introduction of the new Bitcoin Cash between Bitcoin has paid for replay protection and other measures, meaning that transactions can only be conducted within the fork and not across the network. The two currencies upload a common history as of August 1, 2017, but then they are completely different.
As a result, Bitcoin Cash has a different exchange rate than Bitcoin, and in its beginning Bitcoin Cash does not support all pads and exchanges. Still, at the end of August 1, Bitcoin Cash is the third most valuable cryptocurrency in the world in terms of market cap, and it holds the position as of November 13, 2017 (although it briefly surpassed Ethanium as the second largest cryptocurrency by market cap).
Bitcoin Cash derives its value from the idea that it will inherit the throne as the king of crypto, and when the scale of the Bitcoin crisis will no longer be possible. Most die-hard advocates for Bitcoin Cash believe it will simply become "Bitcoin" and Will fade like legacy.
Unwanted individuals with bitcoin cash, on the other hand, see the project as an unnecessary divider in the community, which already divides into small groups who love and understand blockchain technology in groups.
Mining: Whose opinion is really important
At the end of the day, less important decisions about the success of the project than about the progress of discussions on the future of Bitcoin and Bitcoin Cash on Fix and social media are about the new currency of mining.
Since Bitcoin Cash is almost identical to Bitcoin, next to the block size, the two forks will now be competing to get the mine.
Mining was a choice: try on the original bitcoin mining network and take advantage of a new, potentially lucrative venture with more risk with the tested model.
First, there was the problem of bitcoin cache because its difficulty level is still measured to get to the mines of the original bitcoin network. As a result of the sudden decline in computing power for mining, it began to take up to 10 hours for the bitcoin cash block.
However, Bitcoin's (and, therefore, Bitcoin Cache's) software is written to accommodate the mining difficulties of every 2,016 blocks. If more mining networks are joined, the difficulty will increase so that the block time remains almost the same (মিনিট 10 minutes for Bitcoin and Bitcoin cash) eventually. If there is less mining in the network, the difficulty will be less.
The problem was that there was no time to wait 2,016 blocks before Bitcoin Cash had trouble. Instead, they implement an Emergency Structure Adjustment (EDA) that automatically changes the disadvantage if the mining hashtag (the hashtag is the computing power of all mining computers on the networking) is a small fraction of how much was expected.
For the first few weeks of Bitcoin Cash, the Bleed problem quickly ran to the EDA. As a result, mining bitcoin cash became more profitable and mining began to migrate from bitcoin to bitcoin cash. Some of these mining ideologues have dedicated the idea of solving the scalability of bitcoin cash. Still, others were interested in acquiring Bitcoin cash as an investment vehicle, expecting price increases. Eventually, some miners had a business opportunity for bitcoin cash, and they would switch between mining bitcoin and bitcoin cash, which was the most profitable at the time.
Current status of SegWit2x and Bitcoin
Its price is around 400 / bit after the initial launch and the bitcoin cash after the pump.
However, Bitcoin cash has increased in recent weeks and the news from November 9 that Bitcoin’s scalability plan is at risk has increased the demand for Bitcoin cash.
Bitcoin Cash is an answer to Bitcoin's scalability problem, but the Bitcoin community has had a hard time thinking about other ways to improve scalability. Reduces required space and increases transactions per section. SegWit was implemented as an optional, user-driven update. This means that miners can choose whether to mine in the traditional or seg wat wat block. Once accepted up to 95%, SegWit will be considered fully accepted. Currently, SegWit acceptance is around 12%.
After SegWit Live, the next step in increasing the size of Bitcoin is to increase the block size, not like the bitcoin cache like 8mm, but for 2MB, doubling the block size. This double was known as SegWit2x, and it is widely regarded as the way forward for Bitcoin, with users preparing for a tough fork introducing the technology in November. However, a group of businesses and mining farms withdrew support for SegWit2x, essentially shuttering hopes for adopting scalability solutions.
Investors who have agreed on transparency in the face of Bitcoin's inability to convert have become bitcoin cash, with its price recently rising to 1 1,250 / bc in recent trading. If Bitcoin continues to struggle with its extensibility issues, Bitcoin Cash is keen to take the Methel. Investors in Bitcoin Cash believe the situation is likely, although opponents believe that Bitcoin will continue to dominate the market. Finally by investing and using Bitcoin Cache you believe that the scalability issues of Bitcoin are serious and if you think Bitcoin can solve that problem
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