How Does Bitcoin Cash Work and What Technology Is Behind It? Apart from the differences in philosophy and block size, Bitcoin Cash and Bitcoin are pretty identical in terms of how they work. They both use a peer-to-peer network of computers or nodes made functional with the help of miners who verify transactions to earn rewards or use Proof of Work (PoW) consensus to mine new tokens whose supply is limited to 21 million. In the past, the algorithm of Bitcoin Cash was used to raise the mining difficulty after every 2016 blocks. But, recently, the developers have made the mining process easier as miners were making a shift to BTC.It also makes use of what developers call Segregated Witness solution or SegWit. This method proposed that instead of storing all the information related to the block's transaction, it can be stored on a separate file that's outside the block. This will enable the blockchain to have more transactions on the block, reducing processing time. However, the solution hasn't been popular with cryptocurrency enthusiasts, and it's still to be seen if Bitcoin Cash blockchain can handle a large number of transactions.