Bitcoin Cash (BCH)
Bitcoin Cash (BCH) is a prominent cryptocurrency that emerged as a hard fork of Bitcoin. It was created with the primary goal of addressing on-chain capacity issues associated with Bitcoin by increasing the block size. This article delves into the history, technical features, and the reasons behind the creation of Bitcoin Cash.
History of Bitcoin Cash
Bitcoin Cash was officially launched on August 1, 2017, as a result of a hard fork from the Bitcoin blockchain. This fork was primarily initiated to provide an upgrade to the original Bitcoin protocol, specifically to increase the block size limit from 1MB to 8MB. This enhancement allows the Bitcoin Cash network to process significantly more transactions per second compared to Bitcoin, aiming to offer faster and more cost-effective transactions.
| Ticker | BCH |
| Category | Smart Contract Platform |
| Website | https://bch.info/ |
| Telegram | bchchannel |
| https://www.reddit.com/r/btc |
The fork and its implications
The forking of Bitcoin Cash from Bitcoin was motivated by differing views within the Bitcoin community regarding how to scale the network. While some advocated for the implementation of Segregated Witness (SegWit) to address scalability, proponents of Bitcoin Cash favored increasing the block size to ensure the network could handle larger transaction volumes. This divergence in approach led to the creation of Bitcoin Cash as a separate entity.
How Bitcoin Cash works
Bitcoin Cash operates on a blockchain similar to that of Bitcoin, but with distinct technical attributes that set it apart. The most notable feature is its increased block size, which allows for more transactions to be included in each block. This, in turn, reduces transaction fees and confirmation times, enhancing the overall user experience.
Protocol upgrades
Bitcoin Cash maintains its protocol through hard forks, as opposed to relying on soft fork upgrades like Bitcoin. This approach allows for more substantial changes to be made to the network, ensuring that it can adapt to evolving needs. Notably, changes to the Bitcoin Cash protocol are implemented without altering the original economic rules of Bitcoin, preserving its foundational principles.
The split with Bitcoin SV and Bitcoin ABC
On November 16, 2018, a significant event known as the “hash war” led to a split within the Bitcoin Cash community. This split resulted in the creation of two separate chains: Bitcoin SV (Satoshi Vision) and Bitcoin ABC (Adjustable Blocksize Cap). Each of these chains pursued different visions for the future of Bitcoin Cash, further diversifying the cryptocurrency landscape.
The objectives of Bitcoin Cash
Bitcoin Cash was created with the intention of restoring the fundamental qualities of money as envisioned in the original Bitcoin software. Over the years, certain challenges, such as high transaction fees and long confirmation times, had made Bitcoin less practical as a medium of exchange. By increasing the block size, Bitcoin Cash seeks to overcome these limitations and fulfill its role as a viable digital currency for everyday transactions.