Bitcoin Cash is a cryptocurrency which is the result of a Bitcoin hard fork as some developers are concerned about the time and usage limitation on Bitcoin blockchain.
What is Bitcoin Cash?
- Bitcoin Cash is a cryptocurrency created in August 2017.
- Bitcoin Cash is a cryptocurrency which is the result of a Bitcoin hard fork as some developers are concerned about the time and usage limitation on the Bitcoin blockchain. This was mainly due to the 1MB block size limitation causing 3-4 days of queuing up and waiting for confirmation of Bitcoin.
- Bitcoin Unlimited supporters proposed that the size of blocks should be increased so that miners would step up to increase capacity; however, the large mining companies could take advantage of this kind of approach. SegWit is another approach proposing that information could be stored separately from blockchain. Bitcoin cash therefore adopted these two approaches by increasing the size of blocks to 8MB and storing some sets of data outside the blockchain resulting in faster transactions and lower transaction fees compared to Bitcoin. After the fork, initial Bitcoin holders received an equivalent number of Bitcoin Cash tokens, and the information was recorded into the Bitcoin Cash blockchain.
- Bitcoin Cash had split into two other networks, due to discrepancy on Coinbase Rule, in which miners will be paid as a fund, supporting the two networks which are Bitcoin Cash ABC that supports Coinbase Rule and Bitcoin Cash Node that opposes Coinbase Rule.
|Token Name||Bitcoin Cash|
|Total Token Supply||21,000,000 BCH|
|Current Circulating Supply|
|Token Creation Date||August 2017|
|Can it be mined?||Yes|
Who is behind Bitcoin Cash?
Bitcoin protocol underwent a hard fork splitting the blockchain in two, thus creating Bitcoin Cash. Since the fork was caused by the community, there is no real creator of the new altcoin.
One of the well-known figures in the BCH network is Amaury Séchet, who is the founder of Bitcoin ABC. He developed the software necessary to run a full node in the BCH network to keep it functioning.
What is the purpose of Bitcoin Cash?
Two solutions were proposed by developers which are Bitcoin Unlimited and Segregated Witness (SegWit) to avoid pushing transactions with higher fees and the contrary to the purpose of the token.
- A hard fork is a radical change to a network’s protocol and agreements.
- Bitcoin Cash uses the Delta block to verify transactions utilizing weak Proof of Work (POW) for instant confirmation on Bitcoin Cash.
- CashScript, a high-level programming language, is used in Bitcoin Cash on smart contracts instead of regular programming languages such as Solidity.
- Each block is generated every 10 minutes and will only be created when someone creates a new block.
- Bitcoin Cash is currently hard forked to Bitcoin Cash ABC (BCHA) and Bitcoin Cash Node (BCHN) due to a discrepancy in the Coinbase Rule among the developers. BCHA implemented an 8% tax on all miners which is called the Infrastructure Funding Plan while BCHN believes this network is centralized. BCHN is more popular among traders and investors.
- Bitcoin Cash also undergoes a halving, reducing the reward from 12.5 BCH to 6.25 BCH per block.
- The volatility of demands.
- The new technology may be better; for instance, Proof of Stake and Proof of authority limit the number of nodes, making it faster for the transaction.
- The delays in the transaction verification process can easily get bombarded due to the fork of Bitcoin. The low Block Rewards are also one of the reasons that only a few people mine Bitcoin Cash tokens.
News and Updates
- Paypal announces to accept Bitcoin, Ethereum, Bitcoin Cash and Litecoin as payment and there will be no transaction fee when paying with cryptocurrency.
- After the halving of Bitcoin Cash, the hash rate dramatically dropped as miners moved to mine other tokens. Therefore, around 51% of BCH currently cost less than $10,000 per hour, raising some concerns regarding the security of the network.
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