What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) is peer-to-peer electronic cash and a cryptocurrency which came to existence in July 2017 as a result of scalability issues and a hard fork from the blockchain of Bitcoin. Bitcoin Cash is one of the most successful hard forks of Bitcoin until the present date with an equal amount of 21 million coins. The larger block size of 32 MB of blockchain is now able to make more and fast transactions as the rate of (tps) transactions-per-second increased. As per the original intention of Satoshi Nakamoto’s Whitepaper, the goal with Bitcoin Cash creation was to use it as a fast-medium for daily transactions.

What is Hard Fork?

Hard Fork is of the Blockchain updates in which miners have to update their nodes as well to communicate with the whole network. Not every time all the miners want to switch over to the protocol of new coin. Following this situation, a hard fork occurs and a new coin is created respectively.

Bitcoin (BTC) and Bitcoin Cash (BCH) are two different cryptocurrencies with many similarities, like both feature reward halving and have a maximum supply of 21 million coins and both cryptocurrencies use proof of work as a consensus mechanism with the SHA-256 algorithm’s support.

The technical difference is that the Bitcoin Cash allows a large block in its blockchain (32MB as compared to 1MB of Bitcoin), which results in more cheap, scalable, and fast transactions per second (TPS) for Bitcoin Cash. This difference makes them discrete and independent cryptocurrencies.

The main purpose of Bitcoin Cash generation is to use it as a payment method. Just as the Bitcoin users, everyone can send or receive funds and the Bitcoin Cash technology is much faster in transactions and has lower transaction fees. Bitcoin Cash value has been superb. Initially, people, who got free Bitcoin Cash at the time of its creation (hard fork), tried to sell BCH or immediately do Bitcoin Cash exchange with other cryptocurrencies, but with time BCH kept its value high and became one of the top 5 cryptocurrencies. As the Bitcoin Cash trade is becoming popular, new and existing markets are accepting it as a payment method.

Bitcoin Cash has the following Feature:

⦁ Fast: get your transitions in seconds.
⦁ Reliable: A network with no congestions.
⦁ Low Fees: Send money globally for as little as pennies.
⦁ Simple: easy-to-use internationally.
⦁ Secure: A most robust blockchain technology.

Both Bitcoin and Bitcoin Cash use proof of work (PoW) algorithm to record every new block. The use of these algorithms is the same in both cases. It can be considered as an inversion of a hash function. Both Bitcoin and Bitcoin Cash want to generate a new block every 10 minutes on average. A parameter called the mining difficulty determines the time required to calculate new blocks. Both Bitcoin and Bitcoin Cash use a mining difficulty adjustment parameter, to keep the block generation time 10 minutes on average. This algorithm is called Difficulty Adjustment Algorithm (DAA). Since August 2017; Bitcoin Cash has also used another algorithm which is called Emergency Difficulty Adjustment (EDA), to lower the mining difficulty of Bitcoin Cash up to 20%. Later in November 2017, EDA caused adjustment difficulties in the system and for the reason; DAA was implemented to address the mining difficulty. In June 2019, a researchers group find out that Bitcoin Cash DAA is stable even if the crypto price is volatile.

You can store your Bitcoin Cash in a number of different ways. The easiest and simplest method is by using a BCH mobile-wallet. BCH wallets are free to store Bitcoin Cash and trade BCH globally. They are super easy to use with cool user interfaces and support instant transactions to buy, sell, and exchange Bitcoin Cash along with multiple cryptocurrencies. To make things even more fast and easy for you, whether you’re new to the crypto space or an experienced trader, let us deal with your business stress. Download B4U Wallet Mobile App today to buy, sell, and exchange multiple cryptocurrencies.