Bitcoin Cash (BCH) is both a cryptocurrency and a payment network. It was created as a result of a so-called hard fork (hard forking, branching) on Bitcoin to increase the number of transactions that can be processed.
The official website dedicated to Bitcoin Cash describes the cryptocurrency as "peer-to-peer electronic money for the Internet. It is fully decentralized, without a central bank, and requires no trusted third party to operate."
Hard forks on Bitcoin and other cryptocurrencies are not uncommon, but a common consensus is usually reached on which blockchain to use. A new token or coin is created where no agreement is gone, and the two blocks remain equivalent. In this case, it was Bitcoin Cash.
The hard fork occurred because there needed to be a consensus on increasing the block size limit. One group of influential miners, developers, and investors advocated a protocol called SegWit2x, which was to be implemented on the Bitcoin network in August 2017. Those who disagreed with the protocol were involved in creating Bitcoin Cash. Its supporters believed it more closely resembled the original vision of Satoshi Nakamoto, the unknown creator (or creators) of Bitcoin, who also implemented the 1 MB limit in secret. However, Nakamoto also said: "we can make changes later if we need them," He predicted that with increased internet speeds and reduced storage costs, the blockchain could be improved without negatively impacting the concept of a decentralized currency.
Since its emergence, Bitcoin Cash has become one of the most successful offshoots of Bitcoin. Roger Ver, a leading bitcoin investor, is a proponent of the new cryptocurrency, describing it as "the real bitcoin." Commonly referred to as the "Bitcoin Jesus," Ver supported Bitcoin as early as 2011, which he saw as a means of promoting economic freedom. Since then, he has supported Bitcoin Cash favoring lower costs and shorter transaction times.
What are the differences between Bitcoin and Bitcoin Cash?
BLOCK SIZE
One of Bitcoin's problems was that transactions were slower and slower as its popularity grew. This was the result of a limit on the size of each block, which was 1MB. The SegWit2x protocol was intended to raise this limit to 2MB. By comparison, Bitcoin Cash does not have the SegWit protocol and originally had a block size of 8MB in 2017, allowing for much faster transactions. In May 2018, this limit was further increased to 32MB and could be increased further if the block performance limit is reached.
Interestingly, the long-awaited Segwit2x was implemented differently than planned, leading to a significant increase in Bitcoin Cash at the expense of Bitcoin.
ALGORITHM
Bitcoin Cash has a different encryption algorithm than Bitcoin. This means that replay attacks are no longer possible. If Bitcoin Cash splits in the future, there is a plan to protect against such attacks and chain wipeouts. Thus, it is believed that if a new fork occurs, both chains can coexist with minimal disruption to all involved.
EDA ALGORITHM
Bitcoin cash uses a new algorithm that helps keep the blockchain functioning properly when the number of "miners" changes dramatically. This provides much greater stability for the cryptocurrency.
