Bitcoin Cash (BCH)

What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) is a cryptocurrency that was created in 2017 as a result of a hard fork of Bitcoin (BTC). A hard fork is a radical change to the protocol of a blockchain network that creates a new version of the blockchain with different rules. Bitcoin Cash was created to address some of the issues that Bitcoin was facing at the time, such as scalability, transaction fees and governance. But what makes Bitcoin Cash different from Bitcoin and other cryptocurrencies? How does Bitcoin Cash work? And why use Bitcoin Cash for payments? Let’s find out.

How does Bitcoin Cash work?

Bitcoin Cash is based on the same basic principles as Bitcoin, but with some key differences. One of the main differences is the block size, or the amount of data that can be processed in each block. Bitcoin Cash has a block size of 32 MB, which is much larger than Bitcoin’s 1 MB. This means that Bitcoin Cash can handle more transactions per second than Bitcoin, and offer lower fees and faster confirmations.

Another difference is the difficulty adjustment algorithm, or the mechanism that regulates how hard it is to mine new blocks. Bitcoin Cash has a difficulty adjustment algorithm that adjusts every 600 seconds, or every 10 blocks. This makes it more responsive to changes in the network’s hash rate, or the total computing power of the miners. Bitcoin, on the other hand, has a difficulty adjustment algorithm that adjusts every 2016 blocks, or every two weeks. This makes it more prone to fluctuations and delays in block production.

A third difference is the transaction signature format, or the way that transactions are verified and validated by the network. Bitcoin Cash uses a transaction signature format called Schnorr Signatures, which allows for more efficient and secure transactions. Schnorr Signatures enable features such as transaction batching, multisignature aggregation and smart contracts. Bitcoin uses a transaction signature format called ECDSA, which does not support these features.

Conclusion

Bitcoin Cash payments aim to provide fast, cheap, scalable and reliable transactions that are suitable for everyday use. Bitcoin Cash payments also are a viable alternative to traditional payment systems and other cryptocurrencies, as they enable new possibilities and use cases that were not possible before with Bitcoin.