What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a peer-to-peer electronic money system that is the result of the difficult fork of the Bitcoin blockchain. In particular, Bitcoin Cash is by far the most successful Bitcoin hard fork. Although the project entered the market, there are still controversies. However, after the smoke cleared, Bitcoin became one of the top ten cryptocurrencies in the world in terms of cash market value.
Bitcoin Cash is a direct result of measurable problems encountered in the Bitcoin blockchain. During the cryptocurrency period in 2017, these issues became increasingly prominent as Bitcoin's transaction time and fees reached new heights. These fees and delays are the result of high network congestion caused by a large number of transactions.
As more and more investors become aware of digital investment, the use and value of Bitcoin has soared this year. In addition, a large number of new investors have poured into the market, eager to participate in the digital "gold rush". These factors promote the greatest potential of the Bitcoin network.
In short, Bitcoin cannot cope with the increase in usage. Meeting the requirements of programming and the Darknet community is one thing, but meeting the needs of the general public is another. In order to accomplish this task, a large number of Bitcoin measurements are required.
More data = more transactions
Bitcoin Cash eliminates these concerns by increasing the transaction volume, which can accommodate more transactions. This strategy can increase the overall transaction processing per second (DPS) rate of the network. The goal is to allow Bitcoin funds to act as a medium for daily transactions, just like the original purpose of Bitcoin in the Satoshi Nakamoto white paper.
Chunk
On most blockchains, increasing the size of transactions is not a big issue, and for Bitcoinists, changing the core protocol of the currency is not enough. They believe that for these people called Bitcoin Core, the 1MB module provides a key function in the network.
First, it allows anyone, regardless of their computer, to participate in the network. However, with the advent of ASIC mining equipment, this argument is still being discussed today. In addition, it can also prevent spam data from reaching the network.
The bigger the better
Bitcoin Cash proponents believe that the best way to provide the services required by everyday Bitcoin users is to increase the volume size to between 8 MB and 32 MB. These larger modules allow more transactions per module. In turn, Bitcoin users can avoid fees and delays.
The increase in transaction efficiency eliminates the need for Bitcoin funds to adopt a separate witness (Sequid) protocol, and Sequit reduces the amount of data sent per transaction. It is part of the core code of Bitcoin today.
Functions of Bitcoin Cash (BCH)
A large amount of Bitcoin funds fulfilled its mission. Keenley, Bitcoin Cash is much faster than traditional Bitcoin. Interestingly, in the stress test conducted in September 2018, the website recorded 25,000 transactions per block. In comparison, the average number of transactions per bitcoin is 1,000 to 1,500.
In addition, using Bitcoin money is very cheap. BCH users only need to pay about 20 0.20 for each transaction using the network. With Bitcoin's blockchain, these fees are very high. In addition, due to the integration of some new protocols, Bitcoin Cash is easier to mine than its predecessor.
Bitcoin Cash follows a healthy community, which is one of the most voiced communities in the market. However, until recently, there were still some differences regarding currency updates.
The history of Bitcoin currency (BCH)
The history of Bitcoin currency begins with a philosophical discussion of how Bitcoin scales to cope with anxiety. These problems have always been problems faced by Bitcoin developers. By 2017, people's worries are imminent. The Bitcoin network is more than just its technical capabilities.
For example, in 2010, the average capacity of a Bitcoin blockchain was less than 100 KB. As of January 2015, the average weight was 600 kg. The creation of this unconfirmed transaction caused damage in the network. In particular, market transaction time and expenses have soared.
By 2017, many expenses are higher than actual Bitcoin shipments. During this congestion period, the transaction time may take several days. In this state, it is impossible to measure whether Bitcoin is an electronic money system like Satoshi Nakamoto imagined.
Discussion options
The Bitcoin community is divided on how to deal with this issue. Some people suggest increasing the average transaction volume to accommodate more transactions. Others suggested that the protocol exclude certain parts of the transaction and put other data in the blockchain (BIP 91). Crucially, both options have their supporters and opponents.
Supporters of increased transaction volume, such as Roger Weir, believe that in the current state, Bitcoin can never be used as a medium for daily transactions. The camp stated that if it cannot process transactions in parallel with multinational credit card processing companies such as Visa, it will never achieve its original purpose, which is a peer-to-peer electronic cash system.
Bitcoin Cash – A Story of Perseverance
For Bitcoinist in the market, it’s easy to dismiss Bitcoin Cash as just a rip-off of Bitcoin. However, this argument falls apart as you start to evaluate the changes, updates, and community growth the coin underwent since its creation. Today, Bitcoin Cash stands by itself as a staple in the crypto community.
Bitcoin Cash (BCH) is born
In the end, no consensus was reached and the community was divided. As a result, Bitcoin Cash was launched in July 2017. The new currency is the result of a hard fork of the original cryptocurrency's blockchain. This hard fork officially took place one month later in August 2017.
What is a hard fork?
There are two types of blockchain updates, hard fork and soft fork. The difference between the two is that hard fork miners need to update their nodes to communicate with the network. Sometimes, not all miners want to switch to a new currency protocol. When this happens, a hard fork will occur, resulting in new coins.
Coin distribution
Bitcoin holders received the equivalent of Bitcoins during the launch. Participants can request their BCH in participating exchanges. Wisely, the total amount of Bitcoin is represented by Bitcoin out of 21 million coins.
Mixed feelings
The bitcoin cash market sentiment was mixed. The value of the coin is 900. Thanks to the support of the mining community and Bitcoin, the currency has gained huge appeal in the industry. In December 2017, Bitcoin Cash hit a record high of 4,091.
The beginning of the hard fork
In November 2018, Bitcoin Cash went through a difficult transition. According to the plan to integrate smart contracts into the blockchain, social segmentation emerged and again increased the average transaction volume. The result was the creation of a hard fork of Bitcoin Cash ABC (BCH) and Bitcoin Cash SV (Satoshi Vision). Of the latter two, Bitcoin Cash SV is led by a long-time cryptocurrency programmer Satoshi Nakamoto, who he said is Craig Wright.
consensus
Bitcoin Cash uses a Proof of Work (PoW) consensus mechanism similar to Bitcoin to mine new currencies. Both Bitcoin and Bitcoin Cash have integrated a volume adjustment mechanism (DAA) to keep the volume time constant. First, Bitcoin and Bitcoin Cash both use the same DAA. However, in August 2017, in addition to DAA (also known as the Emergency Difficulty Correction (EDA) algorithm), Bitcoin Cash was also introduced. This can make the network respond faster.
Why bye