Difference of Bitcoin and Bitcoin Cash

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3 years ago

Bitcoin was intended to be a peer-to-peer cryptocurrency that could be used for everyday transactions, as suggested by Bitcoin creator Satoshi Nakamoto. Bitcoin became an investment vehicle rather than a currency over time as it gained mass popularity and its price soared. Since it couldn't accommodate the increased volume of transactions, the blockchain runs into scalability problems. The time it takes to validate a transaction on the bitcoin blockchain has increased, as have the fees. This was mostly due to bitcoin's 1MB block size limit. Since blocks couldn't accommodate the rise in transaction size, transactions were queued and awaiting confirmation.

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Bitcoin Cash proposes to resolve this problem by increasing block sizes to between 8 and 32 megabytes, allowing for the processing of more transactions per block. At the time Bitcoin Cash was proposed, the total number of transactions per block on Bitcoin was between 1,000 and 1,500. During a stress test in September 2018, the number of transactions on Bitcoin Cash's blockchain increased to 25,000 per block.

Another way Bitcoin Cash differs from bitcoin in that it does not have Segregated Witness (SegWit), a workaround that was proposed to allow more transactions per block. Only information or metadata pertaining to a transaction in a block is maintained by SegWit. All of the information about a transaction is normally contained in a block.

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