One year ago the most significant and definitely the most controversial fork of Bitcoin – Bitcoin Cash (BCH, Bcash) was created. In contrast to “digital gold” with its growing scaling problems and significantly increased transaction fees, Bitcoin Cash fork was promoted by its apologists as “digital cash”, which corresponds to the original idea of Satoshi Nakamoto. How to buy bitcoin cash, Sell Bitcoin Cash became popular topics in autumn 2017.
Notorious Roger Were and Craig Wright present Bitcoin Cash as the “original bitcoin”. According to them, it is well suited for everyday settlements, and not just for investment purposes. Often, such statements cause in the crypto community indignation or laughter, heated discussions, and cascades of funny memes. Bitcoin cash price is still actively searched by people all around the world.
But what exactly was done in a year and did Bcash become a competitor to Bitcoin Core? How actively is “digital cash” used in everyday calculations and is there a consensus in the Bitcoin Cash community itself? What is bitcoin cash?
Background and Milestones of Bitcoin Cash
As you know, before the activation of SegWit, bitcoin block size was only one megabyte. When digital gold was not so popular, this restriction did not particularly affect the performance of the blockchain and did not lead to huge queues from transactions in the memorial and the growth of commissions.
In April 2017, the bitcoin rate accelerated its growth and began to attract more and more attention of the broad masses. This, in turn, caused an exponential growth in the number of network users and an increase in transaction demand.
Approximately in May 2017, the situation worsened: the commissions increased, some transactions were confirmed within several days.
To solve these problems, two main approaches emerged in the crypto community:
- Bitcoin Unlimited (BU), whose supporters offered hardfork to significantly increase the size of the block. This option was to the liking of many miners, who believed that a larger block would “unload” the blockage, as well as increase the profitability of the production of the cryptocurrency due to the growth of the total commission. Against BU there was a large part of the developers who believed that this approach would lead to the concentration of capacity only among the major players of the mining market and the centralization of the block system.
- After some time, protocol SegWit2x was proposed, which meant the activation of Segregated Witness with a subsequent increase in the block size to 2 MB.
A good question is “Why wouldn’t you just increase the number of transactions per second?”. At first, the limit of Bitcoin Blocksize was 1 MB. It was increased to 2 MB a few years ago. The second good question is “If it was once increased to 2 MB, why wouldn’t they increase the volume again?”. Imagine a heavy traffic problem in a big city. The government makes a decision to increase the speed maximum to 200 km per hour. What consequences does this decision have for a big city? Firstly, a security problem will arise, because of the probability of a car crash increases. Secondly, will small or old cars be qualified for highways? Will it be able to move faster in order to maintain the speed limit? No. Only expensive sports cars will be eligible to use a highway. The owners of small vehicles will prefer to use smaller highways or roads. A similar situation can also happen to the Bitcoin network in case the community decides to increase the transaction volume to more than 2 MB per second. More blocks mean more information to work with for every transaction.
The first block of the new chain was obtained by pool ViaBTC. His head, Haipou Yan, had previously spoken in support of the “big blocks”. The size of the first block was 1.9 MB, it contained about 7000 transactions.
After some time, their own hard forks began to occur on the Bitcoin Cash wallet network, mainly aimed at improving performance. So, on November 13, a hardfork was implemented, aimed at optimizing the complexity recalculation algorithm, which also suggested making the transaction confirmation time more predictable (about 10 minutes). In addition, it was designed to make the network more resistant to some attack vectors.
The article will also show where to buy bitcoin cash.
Segregated Witness is a soft-optimizing block structure. So, the solution involves separating the signatures of transactions from the transfer process. In addition, SegWit solves the problem of the plasticity of transactions, and also creates the basis for the implementation of the Lightning Network protocol. This second-level protocol drastically unloads bitcoin, speeds up transactions and reduces commission expenses. In turn, supporters of the “big blocks” criticized this approach for the complexity of implementation, arguing that this decision can only have a temporary effect.
After some time, its own hard forks were created in the Bitcoin Cash chart network, mainly aimed at improving performance. So, on November 13, a hardfork was implemented, aimed at optimizing the complexity recalculation algorithm, which also suggested making the transaction confirmation time more predictable (about 10 minutes). In addition, it was designed to make the network more resistant to some attack vectors.
Shortly thereafter, it became aware of the intention of the developers to switch to the new address format Bitcoin Cash. In particular, the solution was intended to prevent the erroneous sending of BCH coins to Bitcoin addresses. Also, according to Amory Seshe, this format would allow developers in the future to “introduce a safer way to implement smart contracts between several participants.”
Despite the low occupancy of the blocks, in May of this year, another hard fork took place in the Bitcoin Cash network. The block size was increased to 32 MB. In addition to increasing the block size and other changes in the code, OP_CODES, providing functionality for implementing smart contracts and other solutions, are also available. Bitcoin cash to usd.
According to the Bitcoin Cash value and roadmap, the next BCH update should take place in November of this year.
After all these dramatic events, many, perhaps, are asking legitimate questions, such as, “Has Bitcoin Cash become the promise of digital cash?”.