Bitcoin Cash was developed to fulfill Satoshi Nakamoto’s vision of Bitcoin as a “peer-to-peer electronic cash system”. As Bitcoin became more popular, the transactions block of 1mb became a bottleneck to the system.
Transactions would be pooled and people would
have to wait long periods of time for a transaction or pay a higher fee such as $15 during high trading just to speed up
That made buying a cup
of coffee out of the question and thus Bitcoin was seen as a store of value
rather than an electronic cash system.
Developers balked at Roger Ver’s attempt to increase the size of the
transactions for Bitcoin so they decided to hard fork Bitcoin (Creating a
Replica which they controlled) and Bitcoin Cash was created.
BCH was distributed to all holders of Bitcoin on August 1st 2017 and Bitcoin Cash was born. The stated goal of Bitcoin Cash is to lower transaction fees, making it more reliable and thus speed up the transaction rates.
At first the coin found it hard
to get accepted in the Exchanges.
Coinbase stated they were not going to use Bitcoin cash, but by 2018 they
gave in and BCH is now accepted at most exchanges.
Also there are many large companies using BCH as the cost per
transaction is very low.
Hash power has increasingly shifted from Bitcoin to Bitcoin cash as people see the value of fast cheap transactions. As the hash power shifts the size of each block of Bitcoin increases as the wait time for a block to be verified slows down.
Transactions are placed into the mempool (unconfirmed bitcoin transactions) for full
verification by the miners who actually verify these transactions, put them into a block and place them in the blockchain. Since both Bitcoin and Bitcoin Cash use the
same proof of work, the miners can pick and choose between the two.
There is room for
both in the Cryptospace, as Bitcoin is old faithful since it has been around longer and through many more wars than BCH. Bitcoin cash is catching on quickly and I
believe it will become more and more popular.
As far as which one will end up the head honcho, well that is something
that we will have to watch as the markets decide.
As for the
future, Bitcoin Cash has developed
software called Oracles which is being developed to implement smart
contracts. It is like an Escrow account
that would be validated by Bitcoin Cash.
As a project meets certain milestones the digitally agreed upon contract
would fund the project as predetermined by the two parties.
Innovation will be the key to Bitcoin Cash’s
longevity and also creating credibility as it keeps gaining ground on Bitcoin.
Feb 20, 22 11:33 AM
Feb 19, 22 11:14 PM
May 31, 20 05:17 PM