Bitcoin Cash (BCH) is a fork of Bitcoin. When more people began to invest in Bitcoin the network struggled to keep
up with the volume of transactions. Bitcoin Cash increased the size of blocks, allowing more transactions to be
processed, with a lower fee and at a lower transaction rate. In doing this they combatted one of Bitcoins most
pressing issues, its scalability.
Bitcoin Cash (BCH) was launched in August 2017 as a cryptocurrency to be better than Bitcoin.Once the split
happened, anyone holding a balance of Bitcoin was entitled to receive complimentary Bitcoin Cash on a one-to-
one basis. Bitcoin was without a doubt one of the most incredible innovations in recent years. However, it has
always faced criticism due to the low block size of 1MB which is equivalent to a million bytes in 2010. This
limitation slowed down transactions as Bitcoin value started soaring in value.
Satoshi initially limited block size to prevent spam attacks on the network at a time when the cost of Bitcoin was
low. By 2017, in Bitcoin peak, the average block size of 1MB was not enough and was causing the system to slow
down. In a situation like this is where Bitcoin Cash prevails. Bitcoin Cash differs from Bitcoin Classic as it has
increased block size from 1MB to 8MB and has also removed Segwit.
What is Segwit?
Segwit a is a code adjustment designed to free up block space by removing unnecessary parts of the transaction.
What are the Pros and Cons of Segwit?
Pros of Segwit:
- Increases the number of the transactions that a block can take.
- Decreases transaction fees.
- Reduces the size of each transaction.
- The speed of transactions has increased.
- Helps in the scalability of bitcoin.
- Since the number of transactions in each block will increase, it may increase the total overall fees that a miner may collect.
Cons of Segwit:
- Miners get smaller transaction fees per transaction.
- The implementation is complex, and all the wallets will need to implement segwit themselves. There is a significant chance that they may not get it right the first time.
- It will significantly increase the usage of resources since the capacity, transactions, bandwidth everything will improve.
What is the Future of Bitcoin Cash?
Bitcoin cash represents the first time anyone has successfully hard-forked from BTC while keeping the records of
existing transactions. What we have here is a fascinating experiment which will teach us a lot of lessons moving
forward. The 8MB block size is a very alluring aspect.
Bitcoin Cash is also known as BCH, but its supporters have been known to insist that it is the true which has
created controversy as many get misled to believe it is Bitcoin. XCH4NGE Platform aims to resolve this by labelling
much clearly the two different types of digital assets for the users.
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