The Bitcoin Cash Network
Bitcoin Cash (BCH) is a digital currency created in 2017 as a fork of the Bitcoin (BTC) blockchain. The Bitcoin Cash network operates on a different set of rules than Bitcoin, with a larger block size limit of 8 MB.
This larger block size allows for more transactions to be processed per second, resulting in faster transaction speeds and lower fees than Bitcoin. In addition, the Bitcoin Cash network also has several technical improvements and updates to its consensus mechanism, making it more resistant to centralization and censorship.
Why Was Bitcoin Cash Created?
Bitcoin Cash was created in 2017 due to a disagreement within the Bitcoin community about the best way to scale the network to accommodate increasing demand. At the time, the Bitcoin network faced scalability issues, with slow transaction processing times and high fees, as more users adopted the technology.
One faction within the community believed that increasing the block size limit was the best solution to the scalability problem, while another faction thought that other solutions, such as the implementation of second-layer technologies like the Lightning Network, were more appropriate.
Due to this disagreement, a portion of the community decided to fork the Bitcoin blockchain and create a new cryptocurrency with a larger block size limit, allowing for faster and cheaper transactions. This new cryptocurrency was named Bitcoin Cash.
By increasing the block size limit to 8 MB, the Bitcoin Cash network aimed to address the scalability problems faced by Bitcoin and to create a more usable and accessible cryptocurrency that could be used as a medium of exchange and store of value.
In addition, the creators of Bitcoin Cash also made several other technical improvements to the network, such as implementing replay protection and a new difficulty adjustment algorithm, to enhance its security and stability.
The Bitcoin Network
Bitcoin is a decentralized, peer-to-peer electronic cash system that enables users to send and receive payments without the need for intermediaries such as banks. It was created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto.
The Bitcoin network operates on a decentralized ledger called the blockchain, which records all transactions and helps ensure their accuracy and security.
The Bitcoin blockchain is maintained by a network of nodes, or computers, that work together to validate Bitcoin transactions and add them to the blockchain as new blocks.
Transactions on the Bitcoin network are verified through a process called mining, in which nodes compete to solve complex mathematical problems and validate new blocks of transactions. Bitcoin miners are rewarded with newly minted bitcoins for their efforts, which incentivizes them to maintain the security and integrity of the network.
The total number of bitcoins that can ever be in circulation is capped at 21 million, a design choice made by Satoshi Nakamoto to help ensure that the value of bitcoins is not diluted by excessive inflation.
This scarcity, combined with the decentralized and secure nature of the Bitcoin network, has helped establish Bitcoin as a digital store of value and medium of exchange.
Bitcoin vs Bitcoin Cash Network
One of the key differences between Bitcoin and Bitcoin Cash is their approach to scaling. While Bitcoin has opted for a slower, more gradual approach to scaling by implementing layer 2 solutions like the Lightning Network, Bitcoin Cash has taken a more direct approach by increasing the block size limit.
Despite these differences, Bitcoin and Bitcoin Cash share the same basic underlying technology, making them part of the same decentralized, peer-to-peer electronic cash system. However, the different approaches taken by each network have resulted in significant differences in their respective user communities, with each having its own unique set of supporters and detractors.
Can You Convert Bitcoin Cash and Bitcoin?
Yes, it is possible to convert Bitcoin Cash (BCH) to Bitcoin (BTC) and vice versa. This can be done through a cryptocurrency exchange that supports both cryptocurrencies. There are many reputable exchanges that offer this service, such as Binance, Kraken, and Coinbase, among others.
To convert BCH to BTC or vice versa, you need to create an account on a cryptocurrency exchange that supports both cryptocurrencies and then deposit either BCH or BTC into your exchange account.
Once you have the funds in your account, you can place a trade to convert one cryptocurrency into the other. The exchange will then match you with a buyer or seller, and the trade will be executed at the current market price.
What Is the Total Supply of Bitcoin Cash?
The total supply of Bitcoin Cash (BCH) is capped at 21 million, just like Bitcoin (BTC). This cap was implemented to mimic the scarcity of gold and to help ensure that the value of Bitcoin Cash is not diluted by excessive inflation over time.
The 21 million supply cap was a conscious choice made by the creators of Bitcoin Cash, who wanted to establish the cryptocurrency as a digital store of value and medium of exchange. By limiting the supply, they aimed to create a sense of scarcity and make the currency more valuable over time.
It’s worth noting that, due to the halving mechanism built into the Bitcoin Cash protocol, the rate at which new coins are mined will gradually decrease over time, leading to a slowdown in the rate of supply growth.
Bitcoin SV (Bitcoin Satoshi Vision) is a cryptocurrency that was created in 2018 as a result of a hard fork from the Bitcoin Cash blockchain. It was created by a group of individuals and organizations who disagreed with the direction of the Bitcoin Cash network and wanted to restore the original vision of Bitcoin as set forth by its creator, Satoshi Nakamoto.
The primary goal of Bitcoin SV is to increase the block size limit of the Bitcoin Cash blockchain to 128 MB and make other technical improvements to the network to provide a more scalable, secure, and stable blockchain that can support a large number of transactions.
The larger block size limit would allow the network to process more transactions per second and reduce fees, making Bitcoin SV more usable as a medium of exchange and store of value.
Bitcoin vs Bitcoin Cash | Bottom Line
Bitcoin and Bitcoin Cash are two different cryptocurrencies that share the same underlying blockchain technology and the concept of a decentralized, peer-to-peer electronic cash system. However, they differ in their approach to scaling, their user communities, and some technical improvements.
One of the key differences is that while Bitcoin has implemented layer 2 solutions like the Lightning Network to address the scalability issue, Bitcoin Cash has increased the block size limit. Both cryptocurrencies can be converted to each other through cryptocurrency exchanges and have a total supply capped at 21 million.
The total supply of both cryptocurrencies is designed to mimic the scarcity of gold and to establish their value as a digital store of value and medium of exchange.
The integrity and accuracy of bitcoin transactions are maintained by the network of nodes that validate transactions through Bitcoin mining. Each Bitcoin transaction comes with transaction fees which are paid to the miner. Transaction processing fees tend to be expensive since Bitcoin mining requires lots of computing power.
The scarcity, security, and decentralization of the Bitcoin and Bitcoin Cash networks have made them popular among users and established their place in the cryptocurrency world.