What is BCH (Bitcoin Cash)?
Bitcoin Cash (BCH) is a cryptocurrency that shares many characteristics with Bitcoin (BTC) while also including several improvements and features that distinguish it.
It is considered a ‘fork’ of Bitcoin, while supporters claim that Bitcoin Cash more closely follows the original concept of developing a peer-to-peer electronic cash system as put forth in a 2008 white paper produced by the protocol’s inventor, a person or group going by the alias Satoshi Nakamoto.
Bitcoin Cash’s core features
Like Bitcoin Cash, a decentralized peer-to-peer electronic cash system operates without the help of any centralized organizations, such as a government or financial institution. It, therefore, represents a fundamental reevaluation of money itself.
Bitcoin Cash’s primary characteristics include:
- Bitcoin Cash has no owners or owners. There is no CEO, and using it is not subject to approval.
- This makes it possible to maintain the unrestricted usage of Bitcoin Cash by everyone.
- Every transaction is documented on the blockchain, a decentralized global public ledger. At regular intervals, blocks that are linked together to form a chain update the ledger.
- The public ledger is voluntarily stored by a network of individuals known as “nodes” (blockchain). This guarantees the information’s longevity.
- Nodes follow a set of rules to agree on the state of the ledger (a protocol). This widespread understanding is the “truth” regarding property ownership. The protocol can, however, change in response to participant requests, although major consensus is required to put changes into effect. As a result, Bitcoin Cash becomes a quasi-political system where users construct a type of social contract.
- Due to the technology utilized, once a transaction is recorded on the blockchain, it literally cannot be modified.
What is Bitcoin Cash used for?
The essential qualities of Bitcoin Cash described above make it a great medium of trade and a reliable repository of wealth.
From a more philosophical perspective, these two use cases, along with the openness and decentralization of the protocol, make Bitcoin Cash (the network) a method of advancing and sustaining global economic freedom.
Is Bitcoin Cash different from Bitcoin?
Bitcoin Cash is the name of a “fork” of Bitcoin. It was founded on August 1 as a consequence of arguments over how to grow the digital currency among individuals participating in the Bitcoin ecosystem.
The main point of contention was block size, which affects the number of transactions that can be handled per second. Since transactions are composed of data, larger block sizes may allow for the inclusion of more transactions, hence boosting throughput.