General Finance

All You Need to Know About Bitcoin Cash

The pioneer cryptocurrency, Bitcoin, has not been at its best for some time now. The increase in its acceptance and its adoption for transaction purposes did not fail to come with some of the challenged that amplified some of the inadequacies of digital currency. Some of the developers on the network felt the inevitable need for an improvement. In other words, it was time for an upgrade. Since these decisions needed to be unanimously agreed upon, changes to the Bitcoin protocol could not go through, as the decisions were not supported by all of the miners and developers. The next feasible step was to put into effect a hard fork, which ultimately gave birth to Bitcoin Cash.

What is Bitcoin Cash?

            Bitcoin Cash is a decentralized transaction instrument that hard forked from the Bitcoin blockchain on August 1st, 2017 at block 478558. The cryptocurrency’s blockchain works on the same basic Nakamoto Bitcoin roadmap, but its methods aim at improving the original inadequacies – which is the reason behind why it had to split apart and stand alone.

Problems Solved by the Bitcoin Cash Protocol

            The long debate on whether or not to implement a kind of soft forth that would remove the challenges that were posed by the network took a long time to settle. The main points of concern were:

  • The scalability problems of Bitcoin – where a meagre 3 to 4 transactions were confirmed per seconds, thus causing a lesser number of transactions to pull through on the overall.
  • The increase in transaction fees, which are an effect of the scalability problems and resulted in unreasonable initiation of small transactions..

While some miners seemed to have been more concerned with Bitcoin being used as a store of value assets, some others saw a perceived need to bring the blockchain purpose back to its original, unaltered goal: the facilitation of fast and low-fee transactions. This is the reasoning behind the Bitcoin Cash protocol boasts of:

  • An increased blockchain size of 8 megabyte, which is expected to increase transaction scalability
  • Fast and low fee transactions on the network, which enables users to initiate small transactions as well as big ones.

Future of Bitcoin Cash

            From the very first week of operation on the cryptocurrency market, Bitcoin Cash was able to gain support from digital currency users. It seems as though investors are fascinated by the new features it has over its legend Bitcoin origin. Definitely, with all of the impressions made so far, the coin could see some more adoption in years to come.

But, although it looks prospective, we cannot rule out the fact that it would need to channel in more efforts if it intends to overtake its big brother. If you would like to learn more about Bitcoin Cash, I would check out “BITCOIN CASH: WHAT YOU NEED TO KNOW ABOUT BCH” by  Alexander O. M. If you are interested in investing in BItcoin cash check out Coinbase to start investing in cryptocurrencies securely.  

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