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Bitcoin Cash (BCH)

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What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH).png

  1. Native Blockchain:
    • Bitcoin Cash operates on its native blockchain, which is a fork of the original Bitcoin blockchain. The separation from Bitcoin occurred to address concerns regarding scalability and transaction fees.
  2. Consensus Protocol:
    • Similar to Bitcoin, Bitcoin Cash originally used the Proof-of-Work (PoW) consensus mechanism. BCH relies on miners to validate and record transactions on its blockchain.
  3. Trilemma (Security, Speed, Scalability):
    • Security: BCH, using the PoW mechanism, inherits much of Bitcoin's security attributes. However, its security is often debated in comparison to Bitcoin due to its smaller hash rate.
    • Speed: BCH increased the block size from Bitcoin's 1MB to initially 8MB and later even further, aiming to process more transactions per block and thus speed up the confirmation process.
    • Scalability: The primary motivation for the creation of BCH was scalability. By increasing the block size, BCH intended to process more transactions quickly and at lower fees.
  4. Founder / Date Founded:
    • Bitcoin Cash emerged as a result of a hard fork from the original Bitcoin blockchain on August 1, 2017. While it wasn't the creation of a single individual, it was supported by various Bitcoin enthusiasts, developers, and miners who disagreed with the direction Bitcoin was taking in terms of scalability solutions.
  5. Objective / Use Case:
    • The primary objective behind BCH was to address the scalability concerns of Bitcoin by increasing the block size. This intended to allow more transactions to be processed within each block, leading to faster transaction times and lower fees.
  6. Total supply / Limit or Unlimited:
    • Just like Bitcoin, Bitcoin Cash has a fixed supply cap of 21 million coins, ensuring that only 21 million BCH will ever exist.
  7. Supply Deflation:
    • Bitcoin Cash follows the same halving schedule as Bitcoin. Approximately every four years, the miner reward for adding a new block is cut in half. This event decreases the rate of new BCH entering circulation, potentially leading to deflationary pressures if demand remains constant or increases.

          This summary offers an introductory perspective on Bitcoin Cash. Given the ever-evolving nature of the cryptocurrency landscape, those interested should always stay updated with recent developments.

References:

  • Why Bitcoin Cash is Different from Bitcoin https://www.sygnum.com
  • Antonopoulos, A. M. (2014). Mastering Bitcoin: Unlocking digital cryptocurrencies. O'Reilly Media.
  • About Bitcoin Cash, Coinmarketcap - What is Bitcoin Cash? https://coinmarketcap.com
  • Ammous, S. (2018). The Bitcoin standard: The decentralized alternative to central banking. John Wiley & Sons.
  • Antonopoulos, A. M. (2014). Mastering Bitcoin: Unlocking digital cryptocurrencies. O'Reilly Media.