Bitcoin Cash (BCH)
A Peer-to-Peer Digital Currency
Bitcoin Cash (BCH) was introduced to the world in 2017 through a fork in the Bitcoin protocol.
Like Bitcoin, it’s intended to act as a peer-to-peer digital currency that relies on decentralized governance.
However, that’s where Bitcoin Cash’s similarity to Bitcoin ends.
Outside of their common namesake and protocol, the two currencies are very different. The best way to approach understanding these differences is to look at the unique market conditions that lead to Bitcoin Cash’s creation.
Over the course of 2017, it became increasingly apparent that Bitcoin was starting to struggle. As more users flooded the network, the Bitcoin network experienced slower transaction times and user bloat.
Multiple proposals took place to remedy underlying issues. And in July 2017, 80% of the Bitcoin community signaled for a solution called SegWit2x.
Despite support from the community, a handful of miners didn’t support this solution and decided to initiate a fork that would result in a new digital currency, Bitcoin Cash.
This fork took place on August 1, 2017. Starting August 1st, upon mining the 478558 Bitcoin block, Bitcoin Cash was introduced. Before August 1st, Bitcoin Cash shares a transaction history with Bitcoin. After August 1st, these two transaction histories become separate.
The market greeted Bitcoin Cash with enthusiasm.
The digital currency quickly became available on a wide range of exchanges, including Coinbase. Investors who were holding Bitcoin received Bitcoin Cash for free when it came onto the market.
But what makes Bitcoin Cash different from regular Bitcoin?
The key difference between them is their block sizes.
Bitcoin Cash was implemented with a block size of 8 megabytes. In theory, this increased block size should also increase the speed of the verification process. Beyond this, the developers of Bitcoin Cash believe that they’ve created a digital currency that closer adheres to Nakamoto’s central mission.
Bitcoin Cash offers On-Chain Scalability and a difficulty adjustment algorithm, which is a responsive proof-of-work (PoW) difficulty adjustment.
Although these changes are positive in the eyes of certain miners and Bitcoin believers, they’ve also raised some security concerns with the rest of the community.
With that said, Bitcoin Cash is a major player in 2018. Its resemblance to Bitcoin puts it in line for the Bitcoin throne if the world’s first digital currency fails to meet the lofty goals that have been set for it.
If you want to learn more about Bitcoin Cash, you can view the company website here.
How to Buy Bitcoin Cash
Bitcoin cash is available on a wide range of exchanges, including HitBTC, GDAX, Binance, Poloniex, and Coinbase.
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