What is cryptocurrency Bitcoin Cash review
What is Bitcoin Cash? According to the site Bitcoin Cash: Bitcoin Cash is an electronic money used in p2p networks. Cash Bitcoin is fully decentralized, the Central banks and do not require trusted third parties.
This is the exact definition of bitcoin, because Bitcoin Cash is a bitcoin fork that is obtained by dividing its blockchain into two different versions. This separation can happen to any bloccano, but this fork was made by a group of persons who do not agree with the way to grow the bitcoin blockchain in the future.
Our post should help those who are not familiar with Bitcoin Cash, to understand how this crypto currency differs from bitcoin.
|The concept||Digital money||A fork of bitcoin (Aug. 2017)|
|Capitalization||$250 billion||$49.5 billion euros.|
|The block size||1 MB||8 MB|
The scaling problem
From the moment when Satoshi Nakamoto created bitcoin in 2009, cryptocurrencies have become increasingly popular as a digital money. With increasing network bitcoin blockchain began to face the problem of scaling due to limitations in the number of transactions that can fit in each unit size of 1 MB. The unit in this case is part of the blockchain and the transaction groups that are checked and Packed together. A new block in the blockchain of bitcoin is generated every 10 minutes.
With the limit of the block size of 1 MB, the blockchain of bitcoin can only process seven transactions per second, compared with a record 56 000 transactions per second in the Visa system. The constant growth in the number of transactions over many years has led to the fact that processing times have increased significantly. Now, to make transactions faster has found its way into the block senders must set a higher fee. Periods of high activity lead to network congestion and burst of commissions, which makes the bitcoin blockchain impractical for micropayments and other ways of use.
There are different approaches to increase the number of supported transactions, and each of them has a unique combination of advantages and disadvantages associated with speed, cost and security. Since bitcoin became available to the world, there were groups of users who consider different options for the use of the blockchain and economic benefits from it. Although each of these groups interested in bitcoin, no one has the sole right to decide anything in relation to renewal processes. As a result, the parties must come together and agree on changes in the bitcoin blockchain, so they can be adopted. The community of bitcoin several years could not come to an agreement, but recently said "Yes" modernization Segwit2x to help scale the most popular cryptocurrency.
Unrealized plan Segwit2x
The original bitcoin blockchain was updated in accordance with the plan Segwit2x, which included the implementation of the proposal SegWit. However, supporters SegWit abandoned its plan due to the fact that they did not have enough consensus for its implementation. SegWit is, in fact, change the format of transactions that would increase the blocks up to 2 MB, and would also introduce some innovation (e.g., Lightning Network), reducing the load on the network.
Another cryptocurrency, litecoin, was able to successfully implement SegWit in March last year. Thus, bitcoin was never implemented that was originally developed for him.
August 1, 2017, as a result, the hard forks of bitcoin was created the cryptocurrency Bitcoin Cash. The history of bitcoin and Bitcoin Cash was identical to the hard forks. All who controlled the secret keys from a certain amount of their bitcoins or keep them on the exchange, supporting the new currency, automatically received the same amount of Bitcoin Cash.
Bitcoin Cash focuses on increasing the block size from 1 to 8 MB without the introduction SegWit. This allows for more transactions in the network and therefore leads to a decrease in commissions. Bitcoin Cash has not received unanimous approval in the community, and not all exchange supported it. Some believe that this cryptocurrency will help solve the scaling problem in General and others say that hardwork creates unnecessary confusion and damages the reputation of bitcoin sharing community.
Hard to say which chain will win in the long run, the bitcoin Bitcoin or Cash. However, it is clear that they over time will evolve differently. Hardforce is tempting because, if the group fundamentally disagreed with the ideology of the original community, it can separate and start their own version of cryptocurrency with the same technology, but with a different strategy and governance model. This allows the entire cryptocurrency space to develop due to the fact that some ppl were introducing innovations. And, regardless of what fate awaits bitcoin and Bitcoin to Cash, it cannot be denied that to observe the parallel development of these chains, and cryptocurrencies in General, is extremely exciting.