The cryptocurrency market has witnessed a lot of volatility and constant development with many prominent names, among which it is impossible not to mention Bitcoin as well as Bitcoin Cash (BCH). As an improvement on Bitcoin in many respects, especially in terms of transaction block size, BCH has become a major contributor to the crypto market. So what is BCH, and what are its characteristics, let’s find out below.
What is Bitcoin Cash?
According to this project’s Whitepaper, Bitcoin Cash is a peer-to-peer (P2P) cryptocurrency on the Internet and is completely decentralized.
BCH was born after a hard fork of Bitcoin in August 2017 at block 478558. Then, Bitcoin holders would receive a proportional amount of 1 BTC: 1 BCH. In other words, those who held Bitcoin before the hard fork would hold both BTC and BCH after the event.
Some highlight features of Bitcoin Cash
The introduction of Bitcoin Cash led to a number of changes on the platform, but most of them were positive changes, creating momentum for the competition with Bitcoin’s predecessor. Some outstanding features of Bitcoin Cash can be mentioned as:
- Increase block size limit.
- Fix the Proof-Of-Work difficulty in Bitcoin Cash faster than in Bitcoin.
- Make the two chains Bitcoin and Bitcoin Cash completely independent in all respects by providing replay protection and wipeout protection.
- New transaction signature.
Difference between Bitcoin and Bitcoin Cash
From the history, as well as Bitcoin Cash’s definition, we can see the most obvious difference between these two components is in the size of the block on the blockchain.
Bitcoin Cash allows processing a large number of transactions in blocks with a size of up to 8MB instead of 1MB in Bitcoin block. Besides, this also makes Bitcoin Cash transaction costs cheaper.
In addition, Bitcoin Cash uses a different Hash algorithm than Bitcoin. Bitcoin Cash’s algorithms help to ensure that the chain works properly regardless of a significant change in the number of miners.
However, there are also many opposing views about these differences that solutions to expand processing space are only in front of them. If in the future they may have to continuously increase the space and this is clearly not a good solution.
Another problem lies in the number and nature of miners. Bitcoin miners are often very large and highly decentralized, making the ability to attack it quite limited. In contrast, Bitcoin Cash is very centralized with 3 main groups. This is a dangerous situation for the Bitcoin Cash network.
What is BCH Coin?
BCH Coin is the base currency of the Bitcoin Cash network. It is used as the payment fee for transactions in the network.
Some basic information about BCH:
- Ticker: BCH
- Token Standard: SHA-256
- Token Type: Utility Token
- Total supply:19,042,238 BCH
- Max supply: 21,000,000 BCH
Trading BCH/USDT with 5ROI Global right here: https://www.5roi.com/exchange/BCH/USDT
Should we invest in BCH or not?
The investment sector is a potentially risky field, especially with the cryptocurrency market. Therefore, whether to invest or not can only be decided by yourself. We hope that the information provided above will help you gain more knowledge to make the most accurate decisions.
For investors, trading digital assets are both an opportunity and a challenge with outstanding profit potential. 5ROI Global only provides useful information for investors to grasp, and refer to and does not provide financial investment advice of any kind.
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