Blog Cryptocurrency Terms

What is Bitcoin Cash? A Product of Bitcoin Hard Fork

single-image

Bitcoin Cash is a digital asset, payment network, and an off-shoot of the Bitcoin hard fork introduced to the world in August 2017. The name of the digital asset is contentious and is sometimes called Bcash.

The digital asset was created in order to increase Bitcoin’s block size from 1MB to 8MB and allow more transactions to be processed.

Bitcoin Cash fundamentals

Bitcoin Cash is a peer-to-peer (P2P) electronic cash that allows entities to transact with each other without relying on third parties. Bitcoin Cash borrows most of identifying features from Bitcoin, the digital asset from which it was forked from.

It uses the proof-of-work consensus algorithm with a limited supply of 21 million coins. It has a block time of 10 minutes and a block reward of 12.5 BTC.

The block reward is an incentive for miners who validate transactions and mint new coins by solving a complex mathematical puzzle.

History of Bitcoin Cash

The history of Bitcoin Cash is intertwined with that of Bitcoin, the world’s first and original cryptocurrency launched in 2008 and whose genesis block was created on Jan. 3, 2009.

Before going into the details of the two digital assets, we take a look at what a fork is.

There are two types of forks in the crypto sector – soft fork and a hard fork. A soft fork is an update to the software of a blockchain protocol and does not result in a split. A hard fork is a rule change that is not backward compatible and results in the network being split into two.

Bitcoin Cash was created due to diverging viewpoints within the Bitcoin community about which direction the network should take. The main bone of contention was how to scale the network, if at all.

As the network grew and more people began to use Bitcoin, the network did not have enough bandwidth to keep up with the increasing volume of transactions. The clogging resulted in users waiting for several hours or days before the transactions settled.

There were disagreements on how to solve this problem and this eventually led to two distinct groups that had diverging viewpoints. In one corner of the ring, there were those who in favor of increasing the block size and the corner had those who favored restructuring the storage of data in the existing blocks.

The hard fork

After the infighting, it was time for the hard fork. The split. The divorce.

Bitcoin Cash is the most well-known fork of Bitcoin. The digital currency was created specifically to increase Bitcoin’s block size of 1MB to 8MB. The main purpose of the hard fork was to solve Bitcoin’s scalability issues. Bitcoin’s low block size resulted in increased fees and longer transaction processing times.

The forked Bitcoin Cash underwent one of the most controversial hard forks in the history of cryptocurrencies. The November 2018 hard fork was as a result of tensions among the developers of the network.

The contentious hard fork that triggered a massive sell-off is more like a tug-of-war between Roger Keith Ver and Craig Stephen Wright.

Ver is known as “Bitcoin Jesus” because of his evangelism for the leading cryptocurrency. Wright has tried so many times (but unsuccessfully) to convince the world that he is the mysterious Bitcoin creator Satoshi Nakamoto.

Ver supported the original Bitcoin Cash while Wright was in favor of expanding the block size from 32MB to 128MB. He believed that this is what Satoshi had in mind when Bitcoin was created, and this is the reason it is referred to as “Satoshi Vision.”

Differences and similarities between Bitcoin and Bitcoin Cash

The first and obvious difference is the name. Bitcoin has long been criticized for its inability to scale while its backers claim that it is not a payment solution designed for a cup of coffee. On the other hand, Bitcoin Cash was created to be a new form of cash.

Bitcoin Cash has a large block size limit (8MB) compared to Bitcoin’s only 2MB. Bitcoin Cash can process more transactions at a cheaper fee.

How to get Bitcoin Cash

  • The best place to buy Bitcoin Cash is a cryptocurrency exchange. Many trading platforms such as Coinbase and Binance already support the cryptocurrency. However, some platforms are still weighing the option of adding support for Bitcoin SV.
  • Those who engage in mining activities are rewarded with the digital asset that they are mining for.
  • If you owned Bitcoin just before the hard fork, then you were credited an equal amount of BCH.
Beginners Guide To Crypto
Subscribe to get your beginners guide and our weekly digest
We respect your privacy.

You may also like

Blog Exchange Interviews Investing

Mike Kayamori CEO Liquid And Quoine | Golden Age Of Crypto Is Just Starting

single-image

ChainTalk Podcast 4

Mike Kayamori is co-founder and CEO of crypto exchange Liquid and Quoine. In this chat we discuss his background in finance and eventually joining the crypto industry, Liquid’s mission statement, stablecoins, crypto exchange issues including trading volumes, security tokens, appropriate regulation, impact of Libra and Calibra on Bitcoin, encouraging innovation in Japan, Telegram token sale on Liquid, the beginning of new monetary policy, and humans potentially evolving into robots.

Inspired by the innovative disruption of blockchain and digital currencies, Mike co-founded QUOINE in 2014 with Mario. Mike brings over 22 years of experience in investments, business management, IT and venture capital across Japan, the United States, India and Southeast Asia.
Prior to QUOINE, Mike was a Senior Vice President at SoftBank Group, managing its Asia operations and investments with SingTel and Bharti Group. He was also the Chief Investment Officer of Gungho Asia, the creator of Puzzle and Dragons.
Before…

View More Article
Blog Press Release

The Future is Blockchain: Untraceable brings back the Blockchain Futurist Conference

single-image

FOR IMMEDIATE RELEASE – June 30, 2019

Toronto, ON – Blockchain evangelist, Tracy Leparulo of Untraceable, brings back the largest and most talked about Blockchain Futurist Conference (use BLOCKTALK50 for 50% off tickets) in Canada for its second year on August 12 to 14, 2019, Toronto, Canada. It will be held at Rebel Entertainment Complex at 11 Polson Street, Toronto, Ontario.

Last year’s conference was attended by over 2,300 attendees from around the world discussing the future of technology including blockchain, artificial intelligence and other emerging disruptive technologies.

It featured leading executives, entrepreneurs, government officials and prominent blockchain vanguards. Speakers included: Larry King (GEAR Blockchain), Charles Hoskinson (former CEO of Ethereum), Anthony Di Iorio, (CEO of Decentral & Co-founder of Ethereum), and Roger Ver (CEO of Bitcoin.com). Notable attendees included Bruce Croxon, former Dragon of Dragon’s Den and businessman, Stan Bharti.

According to Alexia Hefti, Deloitte’s Global Blockchain Leader, Indirect…

View More Article
Blog Cryptocurrency Interviews Investing

Franklyn Richards, CEO Litecoin Haus | An Early Pioneer Of Litecoin

single-image

Franklyn Richards is founder of Litecoin Haus, operator of Litecoin.com, and director of Litecoin Foundation. In this chat we discuss his journey of getting involved with Litecoin in 2012/2013 as a teenager, the Litecoin blockchain and how its being used today, the upcoming Litecoin halving, his excitement for cryptocurrency, crypto regulation, Bitcoin ETF, Libra coin, how to use Litecoin, going to Mars, and robots evolution into society.

Franklyn Richards joined the Litecoin team in 2013 and In 2016 became a Founding director of the Litecoin Foundation. In 2018 he then helped the Swiss Company ‘Zulu Republic’ develop L I T E the first trustless SMS and Social media messenger wallet, to bring cryptocurrency to the disconnected. Finally in 2019 he set up Litecoin Haus to support Litecoin and operate Litecoin.com

Check out episode 2 of ChainTalk: https://youtu.be/8LWLF1M2w1I

If you enjoyed this episode and want to support our podcast please share it…

View More Article
Blog Events Interviews

Bitcoin Energy Reports FAKE NEWS | Renewable Energy | Piotr Tylko Tylczynski

single-image

➤ Eric chats with Piotr Tylko-Tylczynski, VP at Minebest. They discuss:

➤ Mining using renewable energy and how past energy use reports are based off fake analysis

➤ Why they chose to only mine Bitcoin

➤ The best locations for mining

Guest Bio

15 years of experience and proven track record in global business development & consultancy. Active in blockchain & crypto fields.

View More Article
Blog Events Interviews

The Narrative Is Lifting People Out Of Poverty | Blockchain | Takatoshi Shibayama

single-image

Eric interviews Taka, CEO of Blockshine. In this interview they discuss:

➤ Taka’s mission of using blockchain to help people in poverty in Southeast Asia

➤ The high fees of sending money across borders currently

➤ Getting investors involved for social good

Guest Bio

Takatoshi has been a deep value investor for 17yrs. He started his career with JPMorgan, worked with Goldman Sachs, joined a US hedge fund Davidson Kempner Capital Management, co-founded 3D Investment Partners, and recently founded Blockshine Singapore.

Learn more about Blockshine here: https://www.blockshinesg.com/

If you enjoyed this episode and want to support our podcast please share it with your colleagues and friends. You can easily give us a rating and review by clicking the 5 blank stars and writing in your comments. This will go along way in helping us.

iTunes: https://podcasts.apple.com/podcast/chaintalk-the-missing-block/id1470192532

Spotify: https://open.spotify.com/show/2g0Qd3mQZiJinrcfn6UHW6?si=xGRj4NImQ1mZFztkrb700g

View More Article