Since it inception,there have been questions surrounding bitcoin's ability to scale effectively. Transaction involving the digital currency Bitcoin (BTC)are processed verified and stored with in digital ledger known as blockchain. Blockchain is a revolutionary ledger recording it makes ledger far more difficult to manipulate because the reality of what has transpired is verified by major rule,not by an individual actor additionally this network is DECENTRALIZED; it exist on computer all over the world. The problem with blockchain technology in the bitcoin networkis that its slow specially in comparison to banks that deal with credit card transactions.
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VISA for instance processes close to 150 million transaction per day averaging roughly 1,700 per second. The company is capability actually far surpasses that at 65,000 transaction message per second.
How many transaction can the BITCOIN network process per second?transaction can take several minutes to process. As the network of BITCOIN user has grown waiting time have become longer because more transactions to process with out a charge in the underlying technology that proccess the transaction. Ongoing debates about BITCOIN technology have been concerned with central problem of scaling and increasing the transaction verification process. Developers and cryptocurrency miners have come up with two major solution to this problem The first involved is making the amount of data that needs to be verified in each block smaller, thus creating transaction that are faster and cheaper while the second required making the blocks of data bigger so that more information can be processed at one time.
Bitcoincash (BCH) developed out of this solution.
We'll take a closer look of how Bitcoin (BTC) and Bitcoincash (BCH) differ from one another. In july 2017,mining pools and companies representing roughly 80% to 90% of Bitcoin computing power voted to incorporate a technology knownas segregated witness,called SegWit2×.
SegWit2x makes the amount of data that needs to be verified in each block smaller by removing signature data from the block of data that needs to be processed in each transaction and having it attached in an extended block. Signature data has been estimated to account for up 65% of data processed on each block so this is not a significant technological shift.
Talk of doubling the size of block from 1MB to 2MB ramped up in 2017 and 2018 and, as of February 2019 the average block size of bitcoin increase to 1.305MB, surpassing previous records. By January 2020 however,block size has declined back toward 1MB on average the larger block size helps in terms of improving Bitcoins scalability. In September 2017, research released by cryptocurrency exchange BITMEX showed that SEGWIT2X implementation had helped increased the block size amid a steady adoption rate for the technology.
Bitcoincash(BCH) is a different story.
Bitcoincash was started by bitcoin miners and developers equally concerned with the future of the cryptocurrency and its ability to scale effectively. However these individuals had their reservation about the adoption of segregated witness technology. They felt as through SegWit2x did not address the fundamental problem of scalability in a meaning full way nor did not follow the road map initially outlined by Satoshi Nakamoto the anonymous party that first proposed the blockchain technology behind cryptocurrency. Further more the process of introducing SegWit2x as a road forward was anything but transparent, and there were concerns that its introduction undermined the centralization and democratization in August 2017 some miners and developers initiated what is known as a HARD FORK,effectively creating a new currency: Bitcoincash (BCH).
BCH has its on blockchain and specification including one very important distinction from Bitcoin (BTC)
BCH has implemented an increase block size of 8MB to accelerate the verification process with an adjustable level of difficulty to ensure the chain survival and transaction verification speed. Regardless of the number of miners supporting it.
Bitcoincash is a thus able to process more transaction more quickly that Bitcoin network meaning that short range and transaction fee is lower. The Bitcoincash network can handle many more transaction per seconds than Bitcoin network can. However with faster verification time comes downsides as well. One potential issue with the larger block size associate with Bitcoincash is that security could be compromised relative to the Bitcoin network. Similar Bitcoin remains the most popular cryptocurrency in the world as well as the largest market cap so user of BCH may find that liquidity and real-word usability is lower than for Bitcoin. The debate about stability, transaction processing and blocks has continued beyond the forkwhich led to Bitcoincash (BCH) in November 2019 for example the Bitcoincash network experience its own hard fork resulting in the creation of yet another derivation of Bitcoin called Bitcoin SV.
Bitcoin SV.was created in an effort to stay true to the original vision for Bitcoin. That satoshi Nakamoto described in the Bitcoin White paper while also making modification to facilitate scalability and faster transaction speed. The debate about the future of Bitcoin appers to show no sign of being resolve. BTC is limited by transaction processing time an issue which has caused rifts between factions within the Bitcoin mining and developing communities. BCH was started by bitcoin miners and developers concerned about the future of the Bitcoin currency and its ability to scale effectively. While BTC blocks are limited to 1MB, BCH blocks 8MB.
I need your opinion for you whats the nest crypto among these two? Thank you for your answer.
Now you know whats the difference and where BCH came from. Thank you for reading this article. Kindly leave a comment down below.
Very clear and detailed explanation. Thank you very much!