SmartBCH has officially launched for one month.
But you might still be confused about what is smartBCH actually?
Isn't it just BCH? Why do people always say it is the sidechain? And some people said it is ETH? Why?
Let's make it clear using the following diagram.
First, let's look at the green part first.
The left side is the BCH network/chain which you might be familiar with. Some applications are built on it. For example, bitcoin.com wallet, read.cash and noise.cash. In short, all the cash-related stuff.
The right side is the smartBCH network/chain where the interface is designed to be compatible with ETH. This ETH-compatible network/chain is designed to run complex programs on the internet. For example, online blockchain games.
Both the BCH network and the smartBCH network are paid by BCH as fees. BCH Coins in both sides are supposed to be 1:1 exchangeable. There is no new coin for smartBCH, just BCH coin. The only difference is the interface/format. The left part is BCH interface while the right part is ETH interface.
The way to transfer BCH coin to smartBCH is bridges. (look at the middle part of the figure)
The decentralized bridge is still developing. Currently, the workable solution is via CoinFlex Exchange. You just deposit BCH to the CoinFlex and then withdraw BCH to the smartBCH network and vice versa.
Then, let's see the grey part.
The BCH network is protected by BCH miners. These BCH miners who are capable of producing blocks are eligible to vote for the smartBCH validators. Those elected smartBCH validators will validate and secure the smartBCH network.
Therefore, the smartBCH network is still protected by BCH miners (because these miners can decide who can validate smartBCH blocks).
Lastly, let's discuss the potential applications of smartBCH.
Since the smartBCH is ETH-compatible, you might expect all the ETH-related apps are able to move to smartBCH or clone a similar one. For instance, in the smartBCH network, you can still use metamask as a wallet and swap coins in UNI-like Dapp (the first DEX is online https://benswap.cash/) and play play-to-earn blockchain games.
Depending on the progress of smartBCH ecosystem development, we will see flourishing apps in the future.
FYI. Leave a comment if you are still confused. I am happy to discuss with you.
Feel free to forward this article to anyone that might be interested in smartBCH.
