What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a peer-to-peer electronic cash system developed to realise the vision of Bitcoin as a practical medium for daily transactions. It emerged as a result of a hard fork from Bitcoin in August 2017, designed specifically to enhance transaction capacity and speed.
Background of Bitcoin Cash
Bitcoin Cash was created in response to scalability issues that Bitcoin faced as transaction volumes increased. The founders believed that for Bitcoin to fulfil its potential as electronic cash, it needed to operate more efficiently. By increasing the block size from 1MB to 8MB initially, and later to up to 32MB, Bitcoin Cash allows for a greater number of transactions per block, making it a more practical solution for everyday payments.
Technical Characteristics
Despite sharing several technical similarities with Bitcoin, such as the use of the same consensus mechanism and a capped supply of 21 million coins, Bitcoin Cash differentiates itself in several key areas:
- Block Size: Bitcoin Cash has a significantly larger block size compared to Bitcoin, which supports its goal of being an effective peer-to-peer cash system.
- No Segregated Witness (SegWit): Unlike Bitcoin, Bitcoin Cash does not implement SegWit technology, keeping the mining process as straightforward and accessible as possible.
Goals of Bitcoin Cash
The primary aim of Bitcoin Cash is to serve as an electronic cash transfer system that combines the foundational components of Bitcoin with enhancements like larger blocks for improved scalability. This dedication to maintaining a simple, efficient method for transactions makes Bitcoin Cash a strong candidate for everyday use among merchants and consumers alike.
Bitcoin Cash in the Cryptocurrency Market
Since its inception, Bitcoin Cash has established itself as one of the top cryptocurrencies by market cap. Its focus on larger transactions and daily usage has made it particularly appealing for user adoption and merchant integration. The community actively supports developments aimed at enhancing the functionality and usability of BCH.
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