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Posted on Jun 27, 2023Read on Mirror.xyz

Bitcoin Cash: A Forked Cryptocurrency with Enhanced Scalability and Lower Transaction Fees

Bitcoin Cash (BCH) is a cryptocurrency that was created as a result of a hard fork from the original Bitcoin (BTC) blockchain in August 2017. The fork was initiated by a group of developers and supporters who were dissatisfied with certain aspects of Bitcoin, particularly its scalability and transaction fees.

The main objective behind Bitcoin Cash was to increase the block size limit, which would allow for more transactions to be processed in each block and thereby improve scalability. Bitcoin Cash initially had a block size limit of 8MB, which was later increased to 32MB through a network upgrade.

Bitcoin Cash shares many similarities with Bitcoin, including its decentralized nature and use of a proof-of-work consensus algorithm (specifically, the SHA-256 hashing algorithm). It also retains the concept of a limited supply, with a maximum cap of 21 million coins, similar to Bitcoin.

One of the key differences between Bitcoin Cash and Bitcoin is the approach to transaction fees. Bitcoin Cash typically has lower transaction fees compared to Bitcoin, which was one of the main motivations for its creation. However, it's worth noting that transaction fees can fluctuate based on network demand and other factors.

Bitcoin Cash has gained some level of adoption and usage, with a number of merchants and service providers accepting it as a form of payment. It also has a dedicated community of supporters and developers who contribute to its ongoing development and maintenance.

As with any cryptocurrency, the value of Bitcoin Cash can be volatile, and its price is determined by market forces such as supply and demand. It's important to exercise caution and do thorough research before engaging in any cryptocurrency transactions or investments.