What is Bitcoin Cash Blockchain - A Simple User's Guide
As Bitcoin continues to dominate the crypto market, more individual cryptocurrencies continue to pop up out of its blockchain technology. Several new coins have been developed under the name of bitcoin and Bitcoin cash is one of the recent ones.
Bitcoin cash was created as a necessity to supplement Bitcoin because as Bitcoin grows larger and larger, the number of transactions continue to increase accordingly. This has led to the transaction processing time to become slower as the systems are clogged up with more transactions than it can handle.
Thus, the cost of each transaction also became more expensive for the sender and necessitated the need to improve the Bitcoin system. In this guide, we will discuss what Bitcoin cash is, its function, price, and other important details so read on as we dive into it
History Of Bitcoin Cash
The average size of a block was less than 100 KB in Bitcoin's blockchain in 2010, with the transaction fees averaging at a couple of cents. Because its blockchain was filled with the cheap transaction, the platform was left vulnerable to attacks which could cripple its system.
The size of a block was then limited to 1 MB on Bitcoin's blockchain to handle this situation generation a block every 10 minutes, this led to more space and time being allocated to each transaction. Although this successfully increased the security of Bitcoin's blockchain, it later became a hindrance when Bitcoin got mainstream exposure which led to an increase in the average size of the blocks to 600 KB in 2015, the time lapse between each confirmed transaction became shorter and cost of service went up too.
Developers got together to solve this problem and after a lot of back and forths, Bitcoin cash was born in August 2017, launching at an impressive $900 with major support from Bitmain, the world's largest Cryptocurrency mining platform.
What is Bitcoin Cash?
Bitcoin Cash was created by performing a fork on the Bitcoin technology. Bitcoin was formed as a way to assist Bitcoin in its transactions, this is done by increasing the size of blocks in the blockchain to allow for more transactions to be processed.
Everyone who owned Bitcoin during the forking process automatically became the owner of an identical crypto amount of Bitcoin cash. After its first fork, a second fork was performed which split Bitcoin cash into two Bitcoin Cash (BCH ABC) and Bitcoin Cash SV(Satoshi Version) that although are similar, function differently.
Bitcoin cash was developed as a result of disagreements between factions concerning how to improve bitcoin technology. The major issue with the Bitcoin system was that with every new user who performs a transaction, the network takes a long time to respond and process the transaction.
This was viewed as a very serious problem by Bitcoin enthusiasts, as the cryptocurrency was gaining so much popularity, this issue needed to be dealt with as effectively and swiftly as possible, so developers came up with two potential solutions, namely;
1st Idea: Changing The Format Of Each Block
Take for instance each Bitcoin transaction is written on a blank sheet of paper, the sheet will contain the wallet addresses of the receiver, sender, and both of their signatures for each transaction.
This will take a whole lot of space on the paper, so a group of developers suggested separating the sheet into two, where one sheet of paper contains the addresses of the sender and the receiver, while the second sheet contains their signatures. This would leave more space for more information on the paper which means more transactions
2nd Idea: Increasing Block Size
A faction of developers believed that the first idea was a bad one because they believed that although changing the format of each block will work, it will only be temporary. Thus would imply that whenever there is a considerable increase in users, the Bitcoin network will need an upgrade.
They believed that to create a lasting solution for Bitcoin's speed issues, the maximum block size should be increased. They argued that Bitcoin needed larger block sizes to become a standard payment system.
If you know anything about Bitcoin, it is that for changes to be made to the technology, a vote must be had. This vote shockingly supporter Idea 1 by 97% which required just a _soft fork._ The second group was unsurprisingly irked by these decisions and decided to go on ahead and perform a _hard fork_ on the technology, this birthed Bitcoin cash.
This is a program that fully validates blocks and transactions. They are mostly used to help the network by accepting blocks and transactions, validating them, and then transferring them over to other full nodes.
Nodes are also used by clients to transmit a transaction to the network and notify them about action in their wallets. The node programs are usually run by volunteers who use spare computing and bandwidth resources to run full nodes.
Bitcoin ABC is the name of the development team that provides a fully functioning node software that deals specifically with Bitcoin Cash protocol. There are a variety of available implementations of BCH protocol with BTC unlimited and Bitcoin XT in the fore, but BCH ABC is revered as one of the largest groups. It resulted from a "hash war" which began in November 2018 from a disagreement in the community about which path Bitcoin cash development should take.
For over 2 years, opposite sides, BCH ABC and BCH AV have battled on Opcodes, wormhole protocol, and block size but most leading exchanges have begun to come out to say that BTC ABC has won the war of who controls the BCH ticker.
Bitcoin cash was created to improve the BTC network model and they seem to be doing a good job so far. Launching in 2017 it is already among the top 5 cryptocurrencies, not bad for less than 3 years of work. By now your question of 'what is bitcoin cash?' should be answered concisely. Although the cryptocurrency community is still skeptical about it, BCH is still widely used because of its low transaction fees and faster processing time.
BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.
BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts, derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.