Bitcoin Cash is a new altcoin created on 1 August, 2017 via a hard fork from Bitcoin.
This article will explain the evolution of Bitcoin Cash and the differences between Bitcoin Cash and Bitcoin.
What is Bitcoin Cash?
Bitcoin Cash is not a variation of Bitcoin, but an entirely new altcoin.
Since a hard fork is an incompatible update to the current code, Bitcoin Cash – although similar to standard Bitcoin – is a completely different currency.
Basic Information on Bitcoin Cash
Name: Bitcoin Cash
Code: BCC/BCH ※
Wait time: Approximately 10 minutes
Maximum Issue Volume: 21,000,000 BCH
※ Code varies among exchanges
History of Bitcoin Cash
Bitcoin approves transactions every 10 minutes; remittance is completed upon transaction approval. Block data capacity is 1MB. Transactions exceeding 1MB are processed in the next approval. Bitcoin Cash seeks to solve this scalability issue. A Segwit called BIP 91 was proposed by developers, but the community was unable to reach a satisfactory agreement.This forced a hard fork and, as such, Bitcoin Cash was born.
Why did People Object to the Soft Fork?
Many mining pools in China use the mining algorithm ASICBoost to save computation costs; however, ASICBoost can not be used after introducing Segwit. Bitmain pushed for Segwit either through a hard fork, or in Extension Blocks which would be compatible with ASICBoost. A soft fork of Segwit (the safest option by a large margin) isn’t compatible. Bitmain would thus lose their advantage over other miners.
Difference Between Bitcoin Cash and Ethereum Hard Fork
Ethereum and Bitcoin hard forks are similar: they are both software upgrades made to the Cryptocurrency that results in an important change to the protocol. This change creates a divergence in the blockchain. Once there is a Hard fork, the Cryptocurrency’s chain branches into 2two separate chains: Chain # 1 keeps the previous Version of the protocol and Chain # 2 adopts the new upgraded protocol
A hard fork serves the following purposes:
To correct security risks found in older versions of the software
To add new functionality, or to reverse transactions
The difference between the Ethereum and Bitcoin hard forks lies in the way it is executed: Bitcoin’s Segwit upgrade as a process was very long because there were many parties involved. Discussion moved away from technical detailed and became wound up in ideology and politics. This resulted in the hard fork into Bitcoin and Bitcoin Cash. Ethereum’s consensus process is very structured and the community is therefore able to come to a common ground. The Ethereum community made sure miners were onboard and incentivized and gave the community enough time to vote on the proposal and contribute ideas.
Features of Bitcoin Cash
The specifications of Bitcoin and Bitcoin Cash are very similar. The features of the Bitcoin Cash are as follows:
- Block size is 8M, Bitcoin is 1M
- Block size can be expanded to 32 MB
- Remittance charge is cheaper than Bitcoin
Future of Bitcoin Cash
Bitcoin Cash is supported Jihan Woo, CEO of China’s biggest mining group ViaBTC.
He posted to Twitter claiming Bitcoin Cash is the “real” Bitcoin.
Bitcoin Cash is super fast, super low cost tx fee, super Satoshi Nakamoto.
— Jihan Wu (@JihanWu) October 25, 2017
Roger Ver – so-called Bitcoin Jesus – claims “Bitcoin Cash is Bitcoin.”
Three points to takeaway from this article:
- Bitcoin Cash is an altcoin born of a Bitcoin hard fork.
- The hard forks of Bitcoin Cash and the Ethereum are distinct in cause and execution
- Persons of influence in the Bitcoin market support Bitcoin Cash