The Bitcoin Cash or BCH is the result of hard fork(Forking is to take the source code from an open source software program and develop an entirely new program)in blockchain technology.It is an altcoin verson of the Bitcoin cryptocurrency. Previously, Bitcoin’s 1MB limitation caused transaction delays, so Bitcoin Cash increased the potential block size.
The Bitcoin network is currently capable of proessing seven transactions per second, whereas Bitcoin Cash can process around 116 transactions per second. It enables a great number of transactions and help the cryptocurrency scale as it grew and competed with more traditional cryptocurrency platforms.After its creation, BCh quickly became the 3rd most successful cryptocurrency, following Bitcoin and Etherium.
BCH Structure And size importance
Bitcoin Cash was created and designed to pack 32MB of data into each block and to process 116 transactions per second on average. While transaction speed is greatly increased with BCH, the larger block size also requires more processing power for nodes to support the blockchain network.
So why not just make the blocks much bigger — say 100MB? That would make the network much faster, but extremely restrictive in terms of who could run a node, verify new blocks on the blockchain, and support the network. The debate about block size essentially boils down to speed versus decentralization and which of the two is more desirable.
Large institutions, organizations, or BCH-businesses are able to consolidate the type of processing power required for large block sizes. In contrast, it would be much more difficult for individuals to amass sufficient processing power to handle large blocks. This discrepancy threatens to create an oligopoly (where processing power is consolidated in the hands of a few key players), which ultimately endangers the decentralized nature of the blockchain. A healthy mix of decentralized, distributed, independent verification is what makes the blockchain secure and reliable so, in a nutshell, more nodes equals greater network security.
Work of BCH
BCH transactions are quick enough that you could make a grab-and-go retail purchase with BCH (like a cup of coffee). But what if you were making a large purchase?( such as a car or a house). You could opt for a slower, more secure cryptocurrency like BTC.
BCH and BTC, therefore, fulfill different roles. Not every cryptocurrency is a store of value, and not every cryptocurrency needs to process data quickly to function like a credit card transaction. It makes sense to use different tools for different tasks — much like using a credit card for restaurant dining and a bank transfer to buy a house.
Ultimately, BCH is faster and features lower processing fees than BTC, but is still used less frequently as everyday cryptocurrency payments have yet to be widely adopted. Over time, many believe that greater awareness and complementary technological improvements and innovations will pave the way for BCH to serve as a leader in cryptocurrency payments.
Sources:
https://www.google.com/amp/s/whatis.techtarget.com/definition/Bitcoin-Cash%3famp=1
https://www.gemini.com/cryptopedia/how-does-bitcoin-cash-work-bch
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