Small History about bitcoin cash & how it works.
Bitcoin Cash (BCH) is a cryptocurrency that was created in 2017 as a fork of the Bitcoin blockchain. The main difference between the two is that Bitcoin Cash has an increased block size limit of 8 MB, compared to 1 MB for Bitcoin, which allows for more transactions to be processed per block. This is intended to make Bitcoin Cash more suitable for use as a currency for everyday transactions, rather than just as a store of value like Bitcoin.
The history of Bitcoin Cash begins in 2015, when a group of developers and miners began discussing the possibility of increasing the block size limit of Bitcoin. At the time, the block size limit was set at 1 MB, which meant that the number of transactions that could be processed on the Bitcoin blockchain was limited. This led to slow transaction times and high fees, which made it difficult for Bitcoin to be used as a currency for everyday transactions.
The group of developers and miners, led by Roger Ver and Craig Wright, proposed increasing the block size limit to 8 MB, which they believed would make Bitcoin more suitable for use as a currency. However, their proposal was met with resistance from other members of the Bitcoin community, who believed that increasing the block size limit would centralize the network and make it more vulnerable to attack.
After months of debate, the group of developers and miners decided to create a new cryptocurrency, which they called Bitcoin Cash. On August 1, 2017, the Bitcoin Cash network was created as a hard fork of the Bitcoin blockchain, which means that it split off from the main Bitcoin blockchain and became a separate cryptocurrency.
Bitcoin Cash operates using a similar consensus mechanism as Bitcoin, known as proof-of-work. This means that miners must solve complex mathematical equations to add new blocks to the blockchain, and they are rewarded with new BCH for their efforts. However, the increased block size limit means that more transactions can be processed per block, which makes the network faster and more efficient.
In conclusion, Bitcoin Cash was created as a solution to the scalability issues faced by Bitcoin. Its increased block size limit allows for more transactions to be processed per block, making it more suitable for use as a currency for everyday transactions. While it is still a relatively new cryptocurrency and its value is subject to market conditions, it has been gaining acceptance and popularity among merchants and businesses.