In this article we are going to look at Bitcoin Cash (BCH) and its turbulent history, and according to some the true and only BTC. Created through a hard fork of the Bitcoin blockchain in 2017 its goal is to increase block size limits and allow more transactions per block, lowering fees and confirmation times.
Bitcoin Cash (BCH) was created with the vision of Satoshi’s Nakamoto P2P digital cash. Hard forked in 2017 of the Bitcoin blockchain its goal was to increase the block size allowing for more transactions per block and lowering fees but more challenges lay ahead.
Understanding Bitcoin Cash
Bitcoin Cash (BCH) was created in 2017 to solve Bitcoin’s scalability problems. Which was a problem that ignited debates between “Big Blocks” and “Small Blocks” camps within the crypto community.
On one hand, the “Big Blocks” side wanted to increase the block size to solve congestion issues. Many Bitcoin miners and developers who were frustrated by speed limits and high fees decided to change things up.
On the other side, the “Small Blocks” side wanted to keep the 1 MB size limit and only wanted to focus on layer-2 optimizations like SegWit and Lightning Network.
And so it went, developers forked the original Bitcoin network, and Bitcoin Cash saw its first light with the native BCH coin. Originally a hard fork of the Bitcoin blockchain, at the network split of block 478,558.
Initially, Bitcoin Cash had support from mining company Bitmain and early Bitcoin investor Roger Ver. But what happened with the original BTC and BCH was bound to happen again, when in 2018, Bitcoin Cash later underwent its forks, creating Bitcoin SV and Bitcoin Cash ABC (now eCash).
How Does Bitcoin Cash Work?
Technically, BCH works the same as Bitcoin as it uses proof-of-work, a 21 million token cap, and node validation. Beyond block size differences, BCH works similarly to Bitcoin – both using proof-of-work consensus and having a fixed supply of 21 million coins. BCH can be used for payments, trading, or investment like other cryptocurrencies.
However, a larger block size (32MB vs 1MB for Bitcoin) makes it faster with lower fees, better suited for everyday transactions.
For example, with the increase in block size to 32MB, 25,000 transactions per block can be allowed, far greater than Bitcoin’s 1,000-1,500. This larger block size allowed it to gain a user base, despite possible confusion between the two names for newcomers.
BCH also supports smart contracts and transaction anonymizing protocols like CashShuffle and CashFusion. However, BCH does not incorporate optimizations like SegWit.
BCH is also much cheaper than Bitcoin and is designed as a payment method rather than a store of value. It is better suited for low-value commercial transactions.
BCH Wallets: Where To Store Bitcoin Cash?
To use, store and transfer Bitcoin Cash, you require a digital wallet. Most of the popular wallets will support it. If you have doubts which ones to consider, let us help you and take a look at some wallet types that 100% support Bitcoin Cash.
These are physical devices that store your cryptocurrency offline, making them the most secure option because they are immune to online hacking attempts. Popular hardware wallet options for Bitcoin Cash include:
A well-known hardware wallet that offers robust security features, has an easy-to-use interface, and the ability to store almost all cryptocurrencies including Bitcoin Cash.
Another trusted name in the hardware wallet market, Ledger provides a secure chip and proprietary operating system to protect your Bitcoin Cash. Be sure to check the latest news around Ledger Live and critique before you engage.
For those who prefer convenience and need to access their Bitcoin Cash on the go, mobile wallets are the perfect fit:
An application that can be installed on your smartphone instantly and supports Bitcoin Cash among many other digital assets.
Desktop wallets are software programs that you can download and install on a computer. Easy to use if you want to manage your Bitcoin Cash:
Exodus is one of these trusted desktop wallets and is a user-friendly wallet with an built-in exchange. It offers an option where you can extract and control your private keys.
What Makes Bitcoin Cash Unique?
Bitcoin Cash is a fork of bitcoin and in many cases fundamentally similar to Bitcoin. Let’s look at the several unique aspects that make it stand out from other cryptocurrencies.
Once a transaction is confirmed on the Bitcoin Cash blockchain, it is irreversible. This makes it tamper-proof for anyone who wants to roll back the transactions and make it invalid. It’s simply impossible.
Bitcoin Cash has a capped supply of 21 million coins, mirroring Bitcoin’s scarcity model. This finite supply is designed to prevent inflation and mimics the scarcity of ‘digital gold’.
The Bitcoin Cash network aims to be fully open, this means that anyone with internet access can participate in transacting and no single government can stop it, unless they block internet of course.
Transactions of Bitcoin Cash network are public, but not necessarily easily identifiable. Wallet addresses are used to send and receive funds, which can be created without providing any personal information. We speak of pseudonymity and not anonymity because on-chain analysis can sometimes lead to doxing of adresses.
Distributed Network of Nodes
Bitcoin Cash is maintained by a global, distributed network of nodes (581), which are computers that validate and relay transactions and blocks. This decentralized model means that no single entity has control over the entire network. No central authority can intervene or hijack the network, in theory.
While less well-known than Bitcoin, BCH is finding its place in the market due to speed and low costs. It faces competition from similar cryptos like Litecoin. Its adoption will depend on its ability to meet user needs compared to other cryptos.
With its creation aimed to fulfill Satoshi’s cash vision, BCH has yet to see Bitcoin’s level of mainstream adoption. Its future depends on gaining utility, differentiating from Bitcoin, and overcoming challenges like mining profitability and blockchain forks. However, its technical capabilities and brand recognition give BCH the potential to succeed long-term if adoption increases.
In summary, Bitcoin Cash is not the original Bitcoin, but an enhanced version of it that was forked into existence. It increases the block sizes and transaction capacity of the traditional Bitcoin and aims to be the go-to cryptocurrency for payments, BCH has seen only limited adoption so far compared to its predecessor, and like all crypto, its future will depend on gaining utility and stability. It wants to fulfill Satoshi Nakamoto’s original peer-to-peer electronic cash vision.