Bitcoin cash (BCH) has a lot of similarities to bitcoin. The inception of Bitcoin Cash was on August 1st, 2017, the day it forked from Bitcoin. A hard fork is a split in the blockchain. Bitcoin cash and bitcoin therefore share the same transaction history up until August 1st, 2017, but are now completely separate.
The hard fork which created bitcoin cash is the result of a discussion in the crypto community on the subject of scalability. The scaling problem concerns Bitcoin’s struggle to process the large amount of transactions on the Bitcoin network.
Looking for a sustainable solution, the community was divided in two. Unable to find a compromise, a hard fork was implemented:
Bitcoin Cash believes larger transaction blocks will solve the scaling problem. When more transactions fit into one block, transactions will be processed faster. The block size of bitcoin is 1MB, bitcoin cash initially increased the block size to 8MB. But since May 15, 2018, the block size has increased more so. The current block size is 32MB. This is the biggest fundamental difference between Bitcoin and Bitcoin Cash.
Bitcoin sees SegWit as the solution. SegWit is a method to separate the signature information from the transaction block. As a result, the space of the transaction blocks is distributed more efficiently, therefore more transactions fit in one block. SegWit also clears the way for applications such as the Lightning Network and Atomic Swaps.
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