What is Bitcoin Cash?

 

Bitcoin Cash (BCH) is a cryptocurrency that was created in 2017 as a result of a hard fork from the original Bitcoin (BTC) blockchain. The main goal behind creating Bitcoin Cash was to address the scalability issue faced by Bitcoin. The developers of Bitcoin Cash aimed to increase the block size limit from 1 MB to 8 MB to enable faster transactions and lower fees.

Bitcoin Cash operates on a decentralized peer-to-peer network, much like Bitcoin. This means that transactions are verified and processed by a network of users rather than by a central authority. The increased block size limit allows for more transactions to be processed per block, leading to faster transaction times and lower fees. This makes Bitcoin Cash a more practical choice for daily transactions compared to Bitcoin.

One of the key differences between Bitcoin and Bitcoin Cash is the approach to scaling. Bitcoin has been implementing SegWit (Segregated Witness), a solution to increase the effective block size without actually increasing the block size limit. On the other hand, Bitcoin Cash chose to increase the block size limit directly. This has resulted in a split in the community, with some supporting Bitcoin and others supporting Bitcoin Cash.

Another difference between Bitcoin and Bitcoin Cash is the level of decentralization. Bitcoin Cash has a smaller network compared to Bitcoin, which means that it is more susceptible to 51% attacks. A 51% attack is a situation where a single entity or group of entities controls more than 51% of the network's mining power, allowing them to control the network and manipulate transactions.

Despite the differences, Bitcoin Cash and Bitcoin share the same basic principles of a decentralized and peer-to-peer electronic cash system. Both cryptocurrencies aim to provide a safe and secure way for users to store and transfer value without the need for intermediaries.

In conclusion, Bitcoin Cash is a cryptocurrency that was created to address the scalability issue faced by Bitcoin. With faster transaction times and lower fees, it is a more practical choice for daily transactions. However, its smaller network makes it more susceptible to 51% attacks. Ultimately, the choice between Bitcoin and Bitcoin Cash comes down to personal preference and the trade-offs that come with each cryptocurrency.