Bitcoin Cash was launched in August 2017 as a cryptocurrency to be better than Bitcoin. Bitcoin Cash is a fork of Bitcoin. Once created, anyone holding the balance of Bitcoin was entitled to receive complimentary Bitcoin Cash on a one-to-one basis. Bitcoin Cash increases the size of blocks, allowing more transactions to be processed and a lower fee and at a faster rate.
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 could turn out to be the future, or it could be another cryptocurrency trying to emulate Bitcoin. What we can confirm is that it is 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 which has created controversy as many get misled to believe it is Bitcoin. XCH4NGE Platform aims to resolve this by labeling much clearly the two different types of digital assets for the users.
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