What Is Cashtokens? A New Dimension For Bitcoin Cash
How Bitcoin Cash Modernizes The Blockchain
Bitcoin Cash upgrades on May 15th with Cashtokens, enhancing on-chain smart contracts and paving the way for various economic activities on the most robust UTXO-based blockchain.
May 2023 marks the phase Bitcoin Cash evolves into a P2P Economy.
The part of the Bitcoin community that did not submit to the legacy finance but promoted the core values of Satoshi’s whitepaper is the Cash version of Bitcoin, Bitcoin Cash.
Bitcoin Cash is a clear winner in maintaining the core concept of P2P Electronic Cash, promoting permissionless money with low fees and fast transactions.
With the upcoming Cashtokens upgrade, Bitcoin Cash extends its reach into digital finance, presenting a new system that reinforces the permissionless use of the blockchain and transforms it into a P2P economic model.
What We Expect With CashTokens
CashTokens is a (forthcoming) upgrade to the Bitcoin Cash protocol that adds two new primitives — fungible and non-fungible tokens (NFTs).
CashTokens is better understood as adding internal state (programmatic power) and inter-contract communication to Bitcoin Cash contracts / transactions (although it can of course also do regular erc-20 style tokens and your standard NFT pictures and collectibles ).
To summarise: CashTokens magnifies the power of smart contracts on Bitcoin Cash, close or equivalent to EVM chains like Ethereum while retaining low fees at scale with a >1 000x scalability advantage over those competitors.
-Cashtokens Reddit
With Cashtokens, Bitcoin Cash unlocks the dynamics of smart contracts.
The idea is to expand permissionless economic activities beyond the money aspect of P2P Electronic Cash and serve finance.
Technically, smart contracts exist in Bitcoin since its inception, but with limitations.
Cashtokens enhance the concept of smart contracts in UTXO-based blockchains.
With Cashtokens, we should expect:
Tokenization (voting shares, utility tokens, collateralized loans)
Fungible tokens and non-fungible tokens (NFTs)
Covenants
Prediction markets
Decentralized oracles
True DeFi
Tokenization with smart contracts will dominate the marketing of every blockchain in the coming years.
The new use cases that emerge for the Bitcoin Cash blockchain will include developments such as:
Prediction Markets
DEXs
Identity Systems
Stocks’ Tokenization
Derivatives Markets
Loyalty Rewards
Ticketing
Gift Cards
Stablecoins
Some of these developments are well known to the public, although we can focus on some aspects of smart contracts with enough potential to positively disrupt the economic activity in the cryptocurrency field.
NFTs
We should expect NFT collections by artists and NFT marketplaces. However, the scope is more relevant to the business application of NFTs.
Various applications for NFTs emerge, like ticketing services and tokenization of real-world assets into non-fungible tokens (NFTs) within a permissionless blockchain delivering absolute control and empowering the individual by providing complete control of these assets.
The Bitcoin Cash blockchain will not host the images.
Cashtokens did not make the same mistake Bitcoin developers did with Taproot, which paved the way for Ordinals and inscriptions.
Taproot was a significant step forward for Bitcoin (BTC), although it also contains vulnerabilities that allow the flooding of the blockchain with spam images (a concept Core devs claimed was the reason they didn’t upgrade block size).
The Bitcoin Cash blockchain will not store images (jpegs, gifs, etc.), but smart contract developers will upload any relevant files on IPFS. So, there is no threat of filling up blocks with spam or irrelevant financial transactions. Only data authentication will be on-chain.
Prediction Markets
PMs is a concept underutilized in Ethereum, but it can be operable within a robust blockchain option like the one Bitcoin Cash presents.
PMs reveal the wisdom of the crowd, offering easy-to-understand answers to hard or controversial questions. PMs work like a weighted, secret ballot poll of the most knowledgable experts, revealing what they truly believe.
DEXs
JeDEX (Joint-Execution Decentralized Exchange) shows how DEXs will operate on Bitcoin Cash with the Cashtokens upgrade. It allows trading on a serverless non-custodial approach using contract exchange between BCH, Cashtokens, Stablecoins, and derivative options.
The new horizons are endless as developers will (re)-discover the permissionless nature of smart contracts on Bitcoin Cash.
A New Era Begins This May
With fees lower than a penny and instant transactions, Bitcoin Cash revived the merchant adoption Bitcoin (BTC) was enjoying until 2017 when the high fees, and scaling indecision severely impacted its potential.
The price will only follow adoption, however, the whole cryptocurrency field has not escaped the speculation stage yet.
There is no certainty that any development will boost the price of BCH. The performance and interest of builders, users, and investors will determine the success of developments.
The network effect will have to permanently attract businesses with developers that deliver products with immense value to several thousands of new users to increase the potential significantly.
With a growing network effect and a stable increase in daily transactions and value transferred, investors will place Bitcoin Cash higher in their blockchain list.
Cashtoken Links:
Prediction Markets on Bitcoin Cash, by Jason Dreyzehner
Channels:
r/cashtokens (Reddit)
Cashtoken devs (Telegram)
Cover by gerald on Pixabay (background)
Platforms:
● read.cash ● noise.cash ● noise.app ● Medium ● Medium ● Hive ● Steemit ●Vocal ● Minds ● Publish0x ● Twitter ● CashRain ● Me.dm
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It can't be worst than SmartBCH 😆