As many of us know, Bitcoin is the result of the first Blockchain in the world, a public, decentralized and distributed registry that allows shielding transactions in block chains. But whose operation requires “miners” to solve difficult mathematical problems in order to record the data of that chain. The miners who solve these problems more quickly receive their reward: a number of Bitcoins.
These logs were constantly updated but could not receive more than 1MB of data every 10 minutes, a time that was useful in the beginning but made it difficult Bitcoin trading as demand increased. That is why you had to wait hours and even days to complete transactions on the Bitcoin Blockchain.
Faced with this problem, the community of miners and developers (who write the codes to operate on the Blockchain) agreed; where technology needed to improve. For this reason, they set August 1, 2017 as the date of agreement to decide the method of change.
In the beginning it arose Segwit2x’s proposal, which allowed to store data on the network and double the capacity to 2 MB for every 10 minutes. However, days later, a group of developers proposed Bitcoin Cash as an alternative, with which it would take the limit to 8 MB in 10 minutes.
Opinions divided the Bitcoin community in two: Some claimed that cryptocurrency had not been developed to be an immediate payment solution and others claimed that the technology had to scale.
The first group was made up of supporters of Bitcoin Unlimited, the organization that maintains the Bitcoin client of the same name, led by Roger Ver. They wanted to carry out a process called hard fork to eliminate the Limit the size of the blocks and adapt it to the needs of the network.
The second group was led by the developers of Bitcoin Core, Bitcoin’s main client. On this side, they proposed a method called Segregated Witness (SegWit), with which the signatures of the transactions would be relocated within the block and the space would be optimized to allow a capacity of up to 2 MB. Therefore, they were betting on a soft fork, a less drastic move than a hard fork because they would still be compatible with previous versions of Bitcoin clients.
As both sides could not agree, it happened; the hard fork. That is, it was created a new version of cryptocurrency but with the same code base as Bitcoin.
The developers of Bitcoin Cash decided to continue with the project and, together with a group of mostly Asian investors and entrepreneurs, led by both the exchange house and the mining group ViaBTC, they gave rise to a different version. of the pioneer cryptocurrency.
The hard fork was completed on August 1, 2017 and so on The Bitcoin Cash genesis block was mined at six hours by ViaBTC, with a size of only 1.9 MB.
However, the increased transaction limit to 8MB made possible a throughput of close to two million transactions processed per day. In this way, the creators of Bitcoin Cash began to offer investors the exchange of their Bitcoins for some units of the new cryptocurrency.
Recently launched on the market, the new currency started to be listed on the Kraken, ViaBTC and HitBit exchange houses at an average of $ 250, just when Bitcoin was above $ 2,500.
In addition, those people who had Bitcoins before the fork were able to reflect their balance in both cryptocurrencies. After the 478,558 mined block, people started to see in your wallet the two amounts. This duplication is known as Replay attack.
But the most important thing of all is that from that moment the two cryptocurrencies began to operate independently. And why would people want to use the alternative to Bitcoin? Let’s review the differences between Bitcoin and Bitcoin Cash.
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Bitcoin Cash, the cryptocurrency that separated from Bitcoin to be “the best money in the world”