Block Chain - Bitcoin Cash

Bitcoin Cash (BCH) is a peer-to-peer electronic cash system that emerged as a result of a hard fork from the original Bitcoin (BTC) blockchain. The hard fork occurred on August 1, 2017, and was driven by a group of developers and miners who wanted to increase the block size limit of the Bitcoin blockchain.

Key features of Bitcoin Cash

Increased Block Size

One of the primary differences between Bitcoin and Bitcoin Cash is the block size limit. Bitcoin had a block size limit of 1 MB, which led to congestion and higher transaction fees during periods of high network activity. Bitcoin Cash increased the block size limit to 8 MB initially and later increased it further to 32 MB, allowing for more transactions to be processed in each block.

Faster Transactions and Lower Fees

With the larger block size, Bitcoin Cash aims to offer faster transaction confirmation times and lower transaction fees compared to Bitcoin, especially during peak usage times.

Consensus Mechanism

Like Bitcoin, Bitcoin Cash uses Proof of Work (PoW) as its consensus mechanism. Miners compete to solve complex mathematical puzzles to add new blocks to the blockchain and receive rewards in the form of newly minted Bitcoin Cash coins and transaction fees.

Shared History with Bitcoin

Bitcoin Cash shares the transaction history of Bitcoin up until the point of the hard fork in August 2017. After the fork, the two blockchains diverged, and they have since operated as separate cryptocurrencies.

Compatibility

Bitcoin Cash adopted most of Bitcoin's code, making it compatible with many existing Bitcoin wallets and services. However, some wallets and platforms may require updates to support Bitcoin Cash.

Community Support

Bitcoin Cash has its own community of developers, supporters, and miners who are actively working to enhance and promote the cryptocurrency.

The primary motivation behind creating Bitcoin Cash was to address scalability issues and improve the transaction experience. Some proponents believe that larger block sizes will better accommodate increasing transaction volumes, allowing for more efficient and cost-effective transactions. However, the larger block size has also been a topic of debate and criticism, as it may increase the requirements for operating full nodes and potentially lead to centralization.