Bitcoin cash, currently sitting as one of the top 5 cryptocurrencies among hundreds of other digital coins has a market capitalization of over 3 billion dollars. As the name “bitcoin cash” suggest, there is obviously some form of relationship present between Bitcoin cash and Bitcoin. As it turns out, Bitcoin cash is actually a cryptocurrency arising from the hard fork of the original bitcoin. What differs Bitcoin cash from bitcoin is the size of blocks. Bitcoin Cash has a larger size of blocks and hence it allows more transactions to be made and processed when compared with Bitcoin.
Ever since the launching of Bitcoin, the topic on the scalability issues of Bitcoin have always been popular among Bitcoin community. In 2010, the blocks size was set at one million bytes. This limit was imposed on the code of Bitcoin as a strategy to avoid spam attacks on the network back when the value of bitcoin was low. However at 2015, the value of Bitcoin undergoes a substantial and significant increase resulting the average block size to reach 600 bytes which further leads to a scenario where transaction times would experienced delays as more blocks reached.
To tackle the problem, several approach have been proposed over the years which often revolves around the increase in size of the blocks. However, since Bitcoin is completely decentralized, change in the code requires buy in from Bitcoin owners such as miners and developers. This general agreement-driven approach often requires extensive amount of time to finalize the proposal. Some other groups tried to tackle the problems by creating new standard blockchain ledger known as fork and Bitcoin Cash is a hard fork from the original Bitcoin classic in August 27.
Bitcoin Cash increases the block size from one million bytes to 8 million bytes. A proposed code adjustment known as segregated witness (SegWit) which was intended to free up block space by eliminating some part of the transaction was removed as well. In short , the core competence or the goal of Bitcoin cash is to vastly increase the number of transactions which can be processed and eventually compete with the transaction volume of other mogul such as Visa and Paypal.
To know more information about Bitcoin cash, an original copy of the Satoshi Nakamoto White paper is included below as both Bitcoin and Bitcoin cash has the same origin point.
Hello Lordxb7,
It was interesting to read your blog about BTC and BCH, the difference between them. As you know BTC faces very high transaction fees now, and it is one of the reasons why the BCH community decided to implement a hard fork to create BCH to lower transaction fees. I am not a tech person, so I am kind of wondering if BCH gets more and more popular, the transaction fees will increase like BTC? Or, do you think that block size has been increased 8 times more, so it means the price will be kept low/reasonable which we can use on a daily basis for normal daily purchases at the market?