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Bitcoin Cash: The forked token people are losing their minds over

In this, we explore the basics of cryptocurrency token and Bitcoin fork Bitcoin Cash with regards to what it is, how it works, and what to know.

Written by Rebecca Leighton Published on

A currency which “brings money to the world, fulfilling “Peer-to-Peer Electronic Cash“.

Bitcoin Cash is a peer-to-peer cryptocurrency which aims to offer merchants and users quick transaction at low fees.

Bitcoin Cash was first announced on 22nd July 2017 and was officially released to the public on 1st August 2017. Created as a branch of Bitcoin Core (BTC), Bitcoin Cash is one of the most prominent Bitcoin forks to have emerged yet.

A number of supporters of the concept of Bitcoin believed that the Core development team had not navigated Bitcoin in the right direction, in order to protect Satoshi Nakamoto’s original vision. The supporters also deem SegWit as an unacceptable technical change to Bitcoin and thus, taking around a tenth of Bitcoin’s hashing power with them, they created a fork of the original pre-Segwit activation codebase, called Bitcoin Cash.

There are many ideas of the original creators of Bitcoin Cash, but the facts point that there are a number of teamed individuals behind the forked currency, including Gavin Andersen who was a major component in the development team of Bitcoin Core. Roger Ver is also a known Bitcoin Cash advocate, and many directors behind news and cryptocurrency operator Bitcoin.com are known for their claims in the success of Bitcoin Cash.

The general philosophy of the team behind Bitcoin Cash is that not everyone will be able to run a computational node in order to generate or obtain cryptocurrency, which makes digital currencies a small world network. The developers believe that Bitcoin was designed at layer one and Bitcoin Cash intends to scale the block size in order to compensate for not having a layer two solution.

The basic details of Bitcoin Cash are that there is a capped supply of 21,000,000 BCH – the same amount as Bitcoin Core – that will be produced. The average block time is approximately ten minutes and the blockchain technology is based on a proof-of- work procedure and the currency has a fixed inflation rate.

As a hard-forked version of Bitcoin Core, Bitcoin Cash shares the same transaction ledger and history of Bitcoin Core. the reason for the creation of Bitcoin Cash was in order to resolve some of the persistent issues of Bitcoin’s scalability. The main goal of Bitcoin Cash is to increase the number of transactions that can be processed by the network.

This is achieved by increasing the cryptocurrency’s block size from one megabyte to eight megabytes. This is in prospective expectations that the currency will need to cope with the huge volumes of traffic which hopes to ultimately ease transactions fees and make payment methods more viable.

Essentially, ‘blocks’ are groups of transactions which are newly added to the cryptocurrency’s blockchain. Since transactions are processed block by block and there is a target number of blocks per hour, if blocks sizes are too small, it makes handling massive amounts of transactions traffic difficult and the blockchain can get clogged up. In the initial days of Bitcoin Core, this was a non-issue, but as the cryptocurrency has grown in popularity, the traffic has likewise increased.

Bitcoin forks

During the process of Bitcoin transactions, in order for a deal to be verified successfully, it must be included in a block. If the block is full, however, the transaction would be delayed until the next block. Often blocks and subsequent blocks are already full because users have the opportunity to pay for a place in the block-queue.

Although retaining some of the key aspects of the original cryptocurrency, Bitcoin Cash has a fundamental difference in blockchain verifications. Bitcoin Cash features an adaptable scale of difficulty –known as the difficulty adjustment algorithm (DAA) – to ensure that the speed at which block verifications occur remains constant, whether or not the numbers of miners which are authenticating transactions at a given time are increasing or decreasing.

Bitcoin Cash can be use for e-commerce purpose, in popular gaming, and publishing agencies, and micro-transactions.

Trading

Bitcoin Cash has been listed on several cryptocurrency trading exchanges, such as Coinbase, GDAX, Binance, Poloniex, and Kraken. A full comprehensive list of exchanges can be found here.

Meetups

There are various host cities around the world which offer Bitcoin Cash conferences. Tokyo, Oslo, San Francisco, London, and Helsinki are a few examples of these.

Start trading cryptocurrency with Coindirect.

Written by

Internet writer looking to find the right piece. Also presents things on radio and happens to be a chip off the old blockchain. @BeckyRLeighton

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