Bitcoin Cash - the everyday Bitcoin
Bitcoin Cash (BCH) is a crypto project born from the alleged shortcomings of the world-renowned mother of all cryptocurrencies, Bitcoin. Created back in 2017, this currency has proven its popularity repeatedly among crypto enthusiasts. So, if you're curious to know the gist of Bitcoin Cash and its significant differences from its predecessor Bitcoin, you have come to the right place.
The compact history of Bitcoin Cash
As you already know, Bitcoin Cash is closely connected to Bitcoin and created by a group of Bitcoin developers, miners, and investors not fully agreeing with each other. For example, many within the Bitcoin community wanted bigger block sizes, which would later initiate a hard fork that gave birth to Bitcoin Cash. As a result, the world of crypto was introduced with a new peer-to-peer electronic cash system with enhanced scalability and lower transaction fees compared to Bitcoin. Sure, Bitcoin was initially meant to be a handy peer-to-peer crypto for daily use as well, but over the years, its primary function shifted from a currency into an investment vehicle.
In practice, Bitcoin Cash, also known as Bitcoin ABC (Adjustable Blocksize Cap), was created to speed up the transaction confirmation times and reduce the transaction fee level. This way, Bitcoin Cash was seen as an improved Bitcoin solution for everyday use, whereas Bitcoin is relatively slow (with its advantages in other areas). Hence the use cases of the currencies are pretty different; whereas Bitcoin is more of a store of value, Bitcoin Cash can be used as money more flexibly.
Bitcoin Cash software trivia
Bitcoin Cash is based on software directly forked from Bitcoin’s source code, so their software share a large portion of their DNA. For instance, both are open-source proof of work protocols, open to anyone contributing. Bitcoin Cash and Bitcoin also share a 10 minute block time and a maximum supply of 21 million coins. However, Bitcoin Cash has a higher limit for block size, enhancing transaction quantity in each block. The current block size of BCH is 32 MB, while a Bitcoin block is 1 MB in size. In addition, the difficulty of BCH mining adjusts according to the DAA difficulty adjustment algorithm, which is the case with Bitcoin as well.
Bitcoin Cash token and payments
Bitcoin Cash is often considered the “handy” version of Bitcoin due to its practicality in everyday payments. This does not come as a surprise, as BCH was specifically designed to be used as money; the core changes to the software are really about scalability and payment flexibility. When Bitcoin can handle seven transactions per second, for instance, for a credit card company, this number would be closer to 2.000 transactions — there was quite some room for improvement. This does explain the growing frustration towards Bitcoin’s transaction ability, and as a result, Bitcoin Cash was born. This currency is quick to send and receive between individuals and businesses. This is enabled with fast transaction times and a low level of fees.
The future of Bitcoin Cash
Bitcoin Cash is a widely used cryptocurrency often accepted alongside other major cryptos. It is a legacy from Bitcoin embodying the innovation ability of the blockchain industry. Interestingly, a part of the Bitcoin Cash community forked the BCH protocol to create a new cryptocurrency known as Bitcoin Satoshi Vision; this puts Bitcoin Cash in the same place as Bitcoin as a birth giver to Bitcoin Cash.