What is Bitcoin Cash (BCH)?
What is Bitcoin Cash (BCH)?

By tornadooo | ToRNaDo | 23 May 2020


To understand what Bitcoin Cash is, you will first need to know about Bitcoin.

Many years have passed since the emergence of Bitcoin, and it is now more powerful than ever before. Bitcoin is not only the world's first cryptocurrency, but also the most expensive, longest standing and most popular name.

 

Although it contains many pluses, Bitcoin is also not perfect. The biggest problem of popular cryptocurrency Bitcoin has been scalability since day one. To be more specific, the transaction blocks being limited to 1 MB causes the Bitcoin transaction capacity to always remain at a certain limit.This subsequently led to higher transaction commissions and more “less reliable” transactions. All this caused the system to lose ease of use.

The need for bifurcation

This problem gradually caused disagreements within the Bitcoin community. Because some of the community believed that the best solution to this scalability problem was “bifurcation”.

Some people in the community started to need a "new bitcoin". Bitcoin Cash, which emerged as a result of Bitcoin bifurcation, was the cryptocurrency that best represents the Bitcoin principles for some users. These users were beginning to see BCH as "real bitcoin".

BCH, which appeared in the Bitcoin blockchain after the fork on August 1, 2017, entered the market at $ 75 levels.

Bitcoin Cash aimed to improve the situation by increasing the block size from 8 MB to 32 MB. In general, the number of transactions per block ranged from 1,000 to 1,500. During the test in September 2018 in Bitcoin Cash blockchain, the number of transactions per block increased to 25,000.

The general purpose of Bitcoin Cash; Hoping that industry giants such as PayPal and Visa can compete with the volume of transactions they can perform, it can be stated as increasing the processing capacity of the network.



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