Bitcoin Cash cryptocurrency: what is it and what is its relationship to Bitcoin?

The criptomoneda Bitcoin Cash was created as a hard fork of Bitcoin. It happened in the summer of 2017, and this event became one of the most scandalous and memorable in the world of cryptocurrencies, as the community divided into two camps. The main disagreements concerned the size of the block: in Bitcoin Cash up to 8 MB versus 1 MB in Bitcoin.

In this article we will tell you the whole truth about the reasons for the appearance and technical characteristics of the coin, why it is called «true bitcoin»And what role did he play Roger See at the project destination. You will also find out what caused the discord in the Bitcoin Cash team and what is the current situation.

What is Bitcoin Cash?

Bitcoin Cash is an open source currency that is in the TOP 10 of cryptocurrencies by market capitalization. It was created as a result of the fork of bitcoin when the community divided, mainly regarding the size of the block.

Adherents promote it as “true bitcoin”, that is, first of all, it means that the currency is suitable for use as a means of payment, and also that it is completely decentralized (however, there are nuances here, which are described below ). Bitcoin Cash moved to a separate blockchain in August 2017.

Bitcoin has been the main leader among cryptocurrencies for more than 10 years and sets the direction for the development of the cryptocurrency market. However, despite its great popularity, Bitcoin, like everything in this world, turned out to be imperfect.

el hard fork de bitcoin: la criptomoneda Bitcoin Cash.As a result of an ill-conceived move to limit the block size to 1MB, Bitcoin soon faced a scalability issue. Fans of digital gold fervently discussed possible methods to solve this problem, but could not reach a consensus.

As a result of the tight-knit work of non-indifferent developers, on August 1, 2017, a new player appeared in the cryptocurrency market, the bitcoin hard fork: the cryptocurrency Bitcoin Cash.

A new forked coin has been launched in the form of the so-called user-activated hard fork (UAHF). The project is backed by a strong team of professionals, including popular mining group ViaBTC developer Haipo Young, Bitmain co-founder Jian Wu, as well as one of the most famous cryptocurrency investors, Roger Ver.

According to the developers, the main objective of creating the cryptocurrency Bitcoin Cash is not only to eliminate all the shortcomings that bitcoin has, but also to increase the value and importance of the currency in the world of cryptocurrencies.

The entire strategy of the Bitcoin Cash team aims to increase the size of the block so that its users can make more transactions with a minimum investment of time.

Bitcoin Cash technology and features

Bitcoin Cash technology and features

Unlike Bitcoin, which uses SegWit technology, Bitcoin Cash uses SigHash technology to verify transactions. Using this algorithm protects the network from the most common problem post-forked cryptocurrencies face: replay attacks.

In the context of blockchain technology, a transaction is duplicated from one block to another. For example, Alice sends 5 BCH to Bob, but as a result of the attack, she will forward 5 BCH to him, even though she had no intention of doing so.

The SigHash algorithm recognizes duplicate transactions and invalidates them, thus giving users confidence in the security of online transactions.

In addition, the cryptocurrency Bitcoin Cash is on the path of increasing the block size, which is why in May of last year the limit was raised from 8 to 32 MB. At the same time, the transaction processing time on the BCH network is only 2.5 minutes, which is much faster than many other cryptocurrencies.

But here it is important to note that the current value of the original bitcoin is significantly higher and its blockchain processes dozens of times as many daily transactions. Therefore, it is difficult to say whether the big blocks will be as effective as they are now, all other things being equal.

Advantages and disadvantages of cryptocurrency

Despite the turbulent environment around Bitcoin Cash, this coin remains a sought-after asset for investment. Therefore, if you decide to invest in Bitcoin Cash, you should pay attention to its advantages and disadvantages.

Among the advantages are:

Speed. All Bitcoin Cash transactions are verified and confirmed within minutes.

Reliability. The developers took maximum care of the security of their users’ transactions using a variety of algorithms and approaches.

Low transaction fees. BCH allows you to send money around the world at very low rates.

Stability. The BCH network has been designed to function without interruption to the maximum. Also, due to the adaptability to scalability, any future modifications to the system will not affect its performance.

Clear and simple for any user. Even beginners can use BCH.

Advantages of investing in Bitcoin Cash

In addition to the aforementioned facts that indicate the centralization and vulnerability of the network, basically everything negative towards this cryptocurrency comes down to difficulties in mining. All problems are due to automatic adjustment of the complexity of the network calculation.

The complexity of the network is directly related to the speed of the mining blocks. If the miners are mining an insufficient number of blocks, the difficulty is reduced and vice versa. If there are too many mined blocks, the speed increases. Many miners use this network pattern for their own benefit. When the difficulty decreases, they direct their power to mining BCH, and when the difficulty increases, they switch to mining BTC.

The developers of the coin are aware of this problem and while trying to contain it, however, this pattern continues to increase the volatility of BCH and sometimes destabilizes the coin.

Obviously, Bitcoin Cash is quite an ambitious project. It has already gone down in history as the first major division to be recognized by the community. But this is not enough. Bitcoin Cash is moving forward to achieve its main goal: to topple Bitcoin as the leader.

Due to the low fees and the absence of scale issues, the coin has every chance of reaching its goal. Although, on the other hand, conflicts between developers often damage the reputation of the coins and complicate the lives of investors.

Also a reason to think is the strange impact of mining pools on the cryptocurrency ecosystem. But since the coin is still in the TOP of cryptocurrencies, it can be assumed that many investors and users believe in the rise of BCH.

We will not jump to conclusions, but will simply watch events unfold. In any case, it is up to you to decide whether to invest in Bitcoin Cash or not. We hope our review has helped you make the right decision.

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Bitcoin Cash cryptocurrency: what is it and what is its relationship to Bitcoin?

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