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About Bitcoin Cash
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What is Bitcoin Cash (BCH)?
: A peer-to-peer electronic cash system aiming to become sound global money with fast payments, micro fees, privacy, and larger block size. -
Creation
: Created in 2017 as an alternative to Bitcoin (BTC) due to differences in the community over Bitcoin scaling and the SegWit upgrade. -
Founders
: Satoshi Nakamoto (anonymous creator of Bitcoin) and Roger Ver (supporter of Bitcoin Cash). -
How it works
: Faster and lower transaction fees due to larger block size, supports smart contracts and ecosystem apps. -
Use
About Bitcoin Cash: The Pioneering Cryptocurrency
Unveiling Bitcoin Cash (BCH): A Revolutionary Cryptocurrency
Bitcoin Cash (BCH) is a decentralized, peer-to-peer electronic cash system that strives to become a universally accepted, sound global currency, distinguished by rapid transactions, negligible fees, robust privacy, and an expanded block size. As a permissionless, decentralized cryptocurrency, Bitcoin Cash operates independently, eliminating the need for trusted intermediaries.
Bitcoin Cash emerged as a rival to the pioneering and most valuable cryptocurrency, Bitcoin (BTC). In 2017, BCH developers modified the BTC code, launching their proprietary software and a fully-fledged competitive product, thereby bifurcating Bitcoin into two distinct blockchains: Bitcoin and Bitcoin Cash. The creation of Bitcoin Cash was a direct result of a hard fork in the blockchain, sparked by disagreements within the community regarding Bitcoin’s scalability and the implementation of the SegWit upgrade. Furthermore, a subsequent hard fork in the fall of 2018 led to the division of Bitcoin Cash into two separate entities: Bitcoin ABC and Bitcoin SV.
The scaling debate was polarized, with two distinct factions emerging. On one hand, proponents of small blocks vehemently opposed increasing the block size, citing concerns that it could precipitate blockchain centralization and vulnerability, thereby making it more challenging to host full nodes. On the other hand, advocates of large blocks championed a faster solution, fearing that escalating transaction fees could stifle growth.
The Visionaries Behind Bitcoin Cash (BCH): Unveiling the Founders
In 2008, the enigmatic Satoshi Nakamoto, the mastermind behind Bitcoin, unveiled the coin’s seminal whitepaper, “Bitcoin: A Peer-to-Peer Electronic Cash System”. The following year, in 2009, the pioneering Bitcoin software, which propelled the blockchain into existence, officially went live.
For several years, the fees remained low and transactions were reliably processed. However, as Bitcoin’s popularity surged by 2016, the network’s transaction volume swelled, resulting in sluggish processing times and higher fees. In response, mining hardware manufacturer Bitmain proposed a hard fork to increase the block size limit, thereby allowing more transactions per block. This proposal came to fruition on August 1, 2017, giving rise to Bitcoin Cash. The new cryptocurrency garnered support from certain factions within the Bitcoin community, notably Roger Ver.
Since its inception, Bitcoin Cash has navigated a complex trajectory marked by challenges and milestones. A pivotal event in its history was the hard fork of November 2018, which precipitated the emergence of Bitcoin SV (BSV) as a distinct cryptocurrency. The rift was sparked by deep-seated disagreements within the Bitcoin Cash community regarding proposed protocol amendments. Consequently, two rival implementations surfaced – Bitcoin ABC and Bitcoin SV – with the former evolving as Bitcoin Cash and the latter crystallizing into a separate, autonomous cryptocurrency.
The Inner Mechanics of Bitcoin Cash (BCH): A Comprehensive Overview
Notably, Bitcoin Cash (BCH) boasts a larger block size, which enables faster transaction processing and lower fees. Additionally, it supports the deployment of smart contracts and a diverse range of ecosystem applications.
With a capped total supply of 21 million coins, Bitcoin Cash boasts inherent scarcity, much like physical cash, and can be effortlessly spent. Transactions are remarkably swift, accompanied by fees that are typically a fraction of a cent.
Bitcoin Cash boasts a diverse array of use cases, extending beyond peer-to-peer transactions between individuals. It can be utilized to facilitate payments to participating merchants for goods and services, both in-store and online. The low-fee structure enables the emergence of novel micro-transaction economies, such as tipping content creators and rewarding app users with nominal amounts. Furthermore, Bitcoin Cash streamlines the expenses and settlement times associated with remittances and cross-border trade. Additional use cases encompass tokens, simplified smart contracts, and private payments, leveraging innovative tools like CashShuffle and CashFusion.
Unpacking the Distinctions: Bitcoin Cash vs. Bitcoin
Bitcoin Cash was hailed by some proponents as the authentic continuation of Satoshi Nakamoto’s original vision for Bitcoin, namely, a decentralized, peer-to-peer electronic cash system. Notably, all Bitcoin holders at the time of the fork, specifically at block 478,558, automatically became owners of Bitcoin Cash, thereby inheriting a stake in this new cryptocurrency.
From a technical standpoint, Bitcoin Cash shares striking similarities with the Bitcoin algorithm. Notably, both projects boast a hard cap of 21 million coins and employ the Proof-of-Work (PoW) consensus framework, relying on nodes to validate transactions.
Unlike Bitcoin (BTC), Bitcoin Cash is designed to scale to meet the demands of a global payment system, thereby addressing the limitations of its predecessor. At the time of the split, the Bitcoin Cash block size was increased from 1MB to 8MB, enabling the network to process a substantially higher volume of transactions per second (TPS) while maintaining extremely low fees. This upgrade effectively resolves the issues of payment delays and exorbitant fees that some users experienced on the Bitcoin BTC network.
As of 2023, Bitcoin Cash boasts a block size of 32 megabytes, a significant increase compared to Bitcoin’s 1-megabyte block size.
The Circulating Supply of Bitcoin Cash (BCH): A Closer Look
Similar to Bitcoin, Bitcoin Cash has a fixed maximum supply of 21 million coins, with a circulating supply of 19,387,119 BCH as of May 2023.
The Security Mechanisms Underpinning Bitcoin Cash (BCH)
Similar to Bitcoin, Bitcoin Cash employs a Proof-of-Work (PoW) consensus mechanism, wherein miners tackle computationally demanding puzzles to validate transactions and forge new blocks, thereby ensuring the integrity of the network.
Unveiling the Art of Mining Bitcoin Cash (BCH): A Comprehensive Guide
The process of mining involves the verification of new Bitcoin Cash transactions and the addition of fresh blocks to the blockchain. Through the utilization of computational power and electricity, miners tackle intricate puzzles, thereby generating novel blocks comprising transactions. Upon acceptance of one of their blocks by the network, the miner or mining pool is rewarded with a block reward, denominated in newly-minted Bitcoin Cash.
The mining landscape is intensely competitive. As the market value of Bitcoin Cash appreciates, a growing number of miners are motivated to contribute additional hash rate to the increasingly fierce competition, vying to produce and validate blocks within the Bitcoin Cash network. This influx of miners serves to bolster the security of the blockchain, as the distributed hash rate increases, thereby preventing any single miner from exerting undue control over the network.
Acquiring Bitcoin Cash (BCH): A Comprehensive Guide to Exchanges and Platforms
For those seeking to acquire BCH at the prevailing market rate, the premier cryptocurrency exchanges for trading in BCH include Binance, Coinbase, KuCoin, Kraken, and several others.
Stay ahead of the curve with real-time BCH price tracking. Download the CMC mobile app to access live prices for BCH, BTC, and a wide range of other cryptocurrencies at your fingertips.
Associated Resources
Delve into the world of Bitcoin Cash with our comprehensive guide.
Delve into the fascinating world of Bitcoin, the pioneering cryptocurrency that paved the way for a digital revolution.
Discover Bitcoin SV, a notable fork of Bitcoin Cash, born from a shared vision.
Delve into the world of cryptocurrency with our comprehensive glossary, where you can discover the intricacies of block size and the cryptographic hash function, SHA-256.
Delve into a comprehensive chronology of Bitcoin’s evolution with CoinMarketCap’s informative portal, offering a rich tapestry of insights and knowledge.