I will be discussing the differences between bitcoin and bitcoin cash. It could be a bit confusing but I will break it down to be quite simple.
Bitcoin Evolution
For those of us new to the bitcoin story, the first genesis block of the bitcoin ledger was created in 2009 in January and its largely thought that the whole project was a response to the 2008 financial collapse and the irresponsible banking and lending practices matched with an incredible uptick in the printing of the US dollars.
This was considered by Satoshi Nakamoto, the creator of bitcoin to be an abuse of power and a symptom of a centralized currency system therefore Satoshi created bitcoin which is the worlds first cryptocurrency built on blockchain.
Essentially bitcoin is just a list of addresses and balances much like in a bank there's an address number and then there is a private key to access that address, which are not tied to a person's identity or anything like that so anyone who has access to the private keys which is the strong series of numbers and letters can access the Bitcoin wallet. For this reason it is kind of anonymous, the only way people find out who you are that is buying bitcoin is when you go to a centralized exchange like coin base which uses a proof-of-work algorithm but so does Bitcoin cash.
We dont really need to go in details into that, it has a fixed supply of 21 million coins, 17 million from an estimated point has already been mined and are in circulation right now. There have been countless bitcoins such as bullruns and the likes, it has indeed died so many times and risen so many times also sorry to say that.
In 2011 bitcoin was used for its first commercial purchase. A total stranger accepted 10,000 bitcoin in exchange for just 2 pizzas, right now 10,000 bitcoin would run you between 70 million and 100 millions of dollars regardless this created the first commercial application of this internet currency and from then on the rest is history.
The interest in markets continues to swell around bitcoin but with that swell in price and usage came traffick. You can think of bitcoin as a highway or freeway the more people want to use it the more congested it gets, likewise when the road gets congested it gets more and more expensive to use the highway.
As bitcoin was once almost free to send and was usable almost like cash and for that reason an Enclave a very big bitcoin holders thought that this would be an opportunity to create a Fork or a new coin that would take what was great about Bitcoin and market more scalable option, making it faster with slower fees, usable like cash and so on...And now begins the tale of bitcoin cash.
Bitcoincash Evolution
Bitcoin Cash was an evolution of a thought process. Scalability concerns were mounting throughout 2017, the first solution created for scalability was something called segregated witness or SegWit and all those SegWit was implemented on the bitcoin chain that didnt address all the concerns of certain bitcoin.
The believe that in order to return bitcoin to it's original functionality you needed to upgrade the block size, just like adding more lanes to a freeway. Bitcoin cash supporters claim the vision is more closer to the original bitcoin created. Bitcoin Cash is much faster with lower fees. Personally I believed that bitcoincash has some potentials so do many altcoins also. Block size limit was the point of contention that led to the bitcoin cash split. Bigger blocks equals more transaction, equals more output, equals faster transactions and lower fees.
Bitcoin cash in 2021
Let's face it the crypto community can be quite tribalistic at times, sometimes these differences of opinion can lead to a clean split. One of the most prominent example of this is Bitcoin Cash, the well known bitcoin fork that has been trying to forge it's own path and identity.
Its worth pointing out that Bitcoin Cash actually increased the 8megabyte limit to 32 megabytes in its first hard fork that took place in May of 2018. However, the chain is using just less than 0.001% of the daily volume it could support with its 32MB block. Thankfully though the bitcoin cash network has been live for almost four years so there are a lot of data and info to work with.
Transaction Fees & Speeds
It peaked in January of 2018 with an average transaction fee, the bitcoin cash relative to the bitcoin cash flow is currently a whole lot more expensive to transact on the bitcoin blockchain so from purely transaction perspective you can see that bitcoin cash is a much cheaper cryptocurrency to send and receive relatable to a decentralized digital cash.
Most people will look at the transactions per second and total transactions on the bitcoin network and conclude that it must mean faster TPS in general. However this is just a reflection of the widespread use of network in which people use it extensively even though there maybe slower transaction times. Bitcoin Cash confirms almost instantly than bitcoin on a similar transaction.
Network Security & Sustainability
The Bitcoin Cash network in orders of magnitude is less secure and more centralized than the Bitcoin network. Additionally this network is completely decentralized. It produces structures of data with quite an inherent security qualities.
Since the future of BitcoinCash depends on its Global acceptance as a peer to peer coin we all have our major roles to play in its growth. It's been a week of joining Noicecash and Readcash and I can see a community trying to figure out a means to global growth, how BCH can be completely known and used widely, how to sustain its purpose. These are platforms that can help you grow with time and in your level of understanding. BCH is expected to grow in the long run and has a bright and promising future ahead.
In Conclusion
This is more or less a brief understanding. Bitcoin Cash is one of those crptos that some love and other love to hate, not really on either sides. Moreover, bitcoin cash has proved to be more of a useful medium of exchange. However when it comes to adoption potential I still see it stuck in the shadow of bitcoin.
Some sources from: google.com
Thank you for always reading.
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