Bitcoin Cash
Bitcoin Cash: An Evolution in the World of Cryptocurrency
Bitcoin Cash (BCH) emerged as a significant player in the cryptocurrency landscape, branching off from Bitcoin in a move to address concerns regarding Bitcoin's scalability. This split, known as a 'fork', resulted from disagreements within the Bitcoin community about how best to accommodate an increasing volume of transactions. In essence, Bitcoin Cash was created to allow for more transactions to be processed by increasing the size of blocks. On 15 November 2018, Bitcoin Cash experienced a chain split from within its own community that resulted in the creation of Bitcoin SV. The creators of Bitcoin SV argued that Bitcoin Cash is no longer staying true to the original vision of the Bitcoin Whitepaper and decided to split off to form their own coin.
What is Bitcoin Cash?
Bitcoin Cash (BCH) is a form of cryptocurrency much like Bitcoin. In fact, Bitcoin Cash was a fork of Bitcoin as a result of a chain split when a certain group of Bitcoin developers became dissatisfied with Bitcoin’s overall scalability direction. In November 2018, the Bitcoin Cash community would later further split into Bitcoin Cash and Bitcoin SV via another hard fork. The latter camp, supported by Craig Wright and Calvin Ayre proposed a competing software version called Bitcoin Satoshi Vision that would take the block size limit further to 128MB.
Who Created Bitcoin Cash?
Bitcoin Cash was created by a group of developers and miners who were part of the Bitcoin community. The leading figures in the creation of Bitcoin Cash include Amaury Séchet, a former Facebook engineer who declared himself the "benevolent dictator" of the Bitcoin Cash project, Roger Ver, an early Bitcoin investor and advocate known for his promotion of Bitcoin before Bitcoin Cash existed, and Jihan Wu, the co-founder of Bitmain, one of the largest and most influential mining and mining hardware companies in the cryptocurrency world. The creation of Bitcoin Cash was the result of a long-standing debate within the Bitcoin community regarding how to scale the network. As transaction volumes on the Bitcoin network increased, it led to longer wait times and higher transaction fees. There were two main schools of thought on how to address these issues: one side advocated for increasing the block size, while the other supported the implementation of Segregated Witness (SegWit) and later, the Lightning Network, as solutions to scale. Unable to reach a consensus, the community split, and on August 1, 2017, a hard fork of the Bitcoin blockchain created Bitcoin Cash, with an increased block size of 8 MB, compared to Bitcoin's 1 MB (at the time of the fork). This was intended to allow more transactions to be processed per block, reducing fees and transaction times, and thus making the blockchain more suitable for everyday transactions.
The Genesis of Bitcoin Cash The inception of Bitcoin Cash in August 2017 marked a pivotal moment in the history of digital currencies. The division stemmed from a long-standing debate over Bitcoin's scalability solutions, particularly the implementation of Segregated Witness (SegWit), a proposal aimed at optimizing the space within blocks. Critics, later forming the Bitcoin Cash faction, argued that SegWit compromised the decentralized ethos of Bitcoin, advocating instead for an increase in block size to facilitate transaction scalability. This led to the creation of Bitcoin Cash with an initial block size limit of 8 MB, significantly higher than Bitcoin's, which was later increased to 32 MB in May 2018 to further augment transaction capacity.
The Birth of Bitcoin SV The narrative of Bitcoin Cash took another turn on 15 November 2018, when internal conflict led to another fork, birthing Bitcoin SV (Satoshi Vision). Spearheaded by figures such as Craig Wright and Calvin Ayre, this faction argued that Bitcoin Cash had strayed from Satoshi Nakamoto's original vision, as outlined in the Bitcoin Whitepaper. Their solution, Bitcoin SV, proposed to expand the block size limit to 128MB, aiming to adhere more closely to Nakamoto's original proposals.
Leadership and Creation Bitcoin Cash doesn't owe its existence to a single creator but rather to a collective of developers and cryptocurrency influencers, including Roger Ver, a prominent advocate for Bitcoin and later Bitcoin Cash. These individuals championed the cause for a scalable cryptocurrency that adheres more closely to the original intent of providing a fast, reliable digital cash system.
How does Bitcoin Cash differ from Bitcoin?
Despite their shared lineage, Bitcoin and Bitcoin Cash diverge in several key areas, primarily concerning block size and transaction fees. By adopting larger block sizes, Bitcoin Cash aims to facilitate faster and more cost-effective transactions than its predecessor. As Bitcoin Cash has bigger blocks and arguably lower usage, sending Bitcoin Cash on the network is relatively cheaper and faster than if done on Bitcoin. In that sense, Bitcoin Cash does serve as a faster and more efficient form of digital currency as extolled by Bitcoin Cash proponents. This differentiation addresses the core concern of scalability and efficiency in transaction processing, making Bitcoin Cash a more viable option for daily transactions and micro-transactions. As Bitcoin Cash is a result of a chain split from Bitcoin, it shares much of Bitcoin’s fundamental workings. In fact, they even share the same history. Due to it being a fork of bitcoin, all on-chain data prior to the split are inherited. If you owned 1 bitcoin before the creation of Bitcoin Cash, you now have 1 BTC and 1 BCH, which can both be signed using the same private keys. However, Bitcoin and Bitcoin Cash are not non-interoperable. You cannot send your Bitcoin Cash to the Bitcoin network and somehow own 2 BTC. Your bitcoin cash and bitcoin now exists on two different sets of blockchains.
Safeguarding Bitcoin Cash Securing Bitcoin Cash, like any digital asset, is paramount for its holders. Distinguishing between Bitcoin and forks like Bitcoin Cash is crucial to avoid transaction errors, such as sending coins to incompatible addresses. For enhanced security, hardware wallets such as Trezor and Ledger offer robust solutions by physically isolating the user's private keys from potentially compromised computers.
Bitcoin Cash Moving Forward
As Bitcoin Cash continues to evolve, it remains a testament to the dynamic and sometimes contentious world of cryptocurrency. It stands as a symbol of the ongoing debate within the crypto community about the balance between maintaining the foundational principles of decentralization and addressing the practical challenges of scalability. As the digital currency landscape progresses, Bitcoin Cash will undoubtedly play a significant role in shaping the future of digital transactions. To sum it up simply, the Bitcoin Cash developers were originally dissatisfied with the decisions made in regards to Bitcoin’s development. Specifically, they were dissatisfied over the implementation of Segregated Witness (SegWit). The Bitcoin Cash developers believe that SegWit is a compromise to the decentralization of the Bitcoin network. They believed that the network could have increased its block size instead in order to allow Bitcoin to grow as a currency. Together, this group formed a plan to split from the Bitcoin blockchain and created Bitcoin Cash with a larger block capacity limit of 8 MB. Bitcoin went ahead with their plan to implement SegWit but the newly forked Bitcoin Cash did not implement SegWit. On 15 May 2018, the Bitcoin Cash block size limit was subsequently increased from 8 MB to 32 MB.
For those interested in exploring Bitcoin Cash (BCH) and understanding its ecosystem, here are some useful resources. These platforms offer a wealth of information ranging from introductory guides, market analyses, to the latest news and developments in the Bitcoin Cash community:
Bitcoin Cash Official Website - https://www.bitcoincash.org/
A primary resource for everything related to Bitcoin Cash, from getting started guides to the latest network updates.
Bitcoin.com's Bitcoin Cash Section - https://www.bitcoin.com/bitcoin-cash/
Offers comprehensive insights into Bitcoin Cash, including how to buy, use, and mine BCH.
CoinDesk: Bitcoin Cash News - https://www.coindesk.com/price/bitcoin-cash/
Stay updated with the latest news and price analysis for Bitcoin Cash on one of the leading news websites in the crypto space.
Wikipedia: Bitcoin Cash - https://en.wikipedia.org/wiki/Bitcoin_Cash
Provides a detailed history, technical background, and an overview of the Bitcoin Cash project.
Investopedia: Bitcoin Cash - https://www.investopedia.com/terms/b/bitcoin-cash.asp
Offers a deep dive into what Bitcoin Cash is, its history, and how it differs from Bitcoin, serving as a great educational resource.
Cointelegraph: Bitcoin Cash News - https://cointelegraph.com/tags/bitcoin-cash
Features articles, analysis, and news updates focused on Bitcoin Cash.
CNBC: Bitcoin Cash Coverage - https://www.cnbc.com/bitcoin/
While not exclusively about Bitcoin Cash, CNBC offers relevant financial and market news that can impact Bitcoin Cash and the broader crypto market.
Bitcoin Magazine: Bitcoin Cash Analysis - https://bitcoinmagazine.com/
Provides insightful articles and analysis on Bitcoin Cash within the wider context of cryptocurrency developments.
Bitcoin Cash’s GitHub Repository - https://github.com/Bitcoin-ABC/bitcoin-abc
For those interested in the technical development and contributions to the Bitcoin Cash protocol.
r/Bitcoincash: Reddit Community - https://www.reddit.com/r/Bitcoincash/
A vibrant community of Bitcoin Cash supporters and enthusiasts where you can find discussions, questions, and community insights about BCH.
