BCH for beginners

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Written by
3 years ago

Disclaimer: I am not an expert on cryptocurrency. I am also in a learning process. This was based on my understanding after surfing the web.

This article is for all the noobs out there including me. All about Bitcoin cash.

What is Bitcoin Cash? Is it the same as just Bitcoin? What is the difference between the two, and which is the true Bitcoin?

A lot of people who are just starting with Bitcoin or cryptocurrency in general, get confused when they see that there's not just one type of bitcoin. For example, Bitcoin Cash, Bitcoin Gold, and Bitcoin Diamond are all forks of the original Bitcoin.

Fork can be describe as an alternate version of a coin. There are two types of forks, soft forks and hard forks.

Soft forks are versions that work well with both the original versions and the alternate version of the coin, so as a user, you can choose which version to run without a lot of concern.

Hard forks on the other hand, don't play well with the original version. This means that you need to choose whether to update your software to run the alternate version, or to stick with the original one.

In other words, if the alternative is not accepted by 100% of the users, then a sort of split will occur in the network and a new coin will emerge. One that similar to the original but not identical.

Now we know that Bitcoin Cash was a hard fork of Bitcoin, let us but why is it created?

Let's go back a few years and talk about the most controversial topics of bitcoin's code- the block size and scalability issue

Bitcoin transactions don't get confirmed easily. In order for the transaction to be considered as confirmed, it needs to be included as part of the block transactions on the Bitcoin ledger known as the blockchain. A new block of transactions is added to the blockchain on average about every 10 minutes. Similar to any type of digital data, adding Bitcoin transactions to a block requires storage space, and the maximum capacity for each block of transactions is 1MB.

to be continued....

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3 years ago
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Thank you for the upvote sir @Erdogantalk..

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