You’ve heard of Bitcoin, the blockchain and the hugely successful cryptocurrency. But what is Bitcoin Cash?
Bitcoin Cash, also known as BCH, is a proof-of-work (PoW) blockchain network and cryptocurrency that is both faster and less expensive than Bitcoin (BTC).
The aim of BCH was to increase the number of transactions that can be processed compared with the original Bitcoin blockchain. The asset was created due to a hard fork in the Bitcoin blockchain network and has since grown its own community.
Bitcoin Cash, like BTC itself, is accepted by some merchants, can be purchased through PayPal, and represents a new way to transact value.
The cryptocurrency is described on the official Bitcoin Cash website as “the internet’s peer-to-peer electronic cash”. It points to BCH being ‘completely’ decentralised.
What is Bitcoin Cash – Core Features
The core features of BCH include the following:
Anyone is Welcome: Nobody has control over or ownership of Bitcoin Cash. There is no CEO and you do not need permission to use it.
Pseudonymous: Transactions are not linked to identities. This helps ensure that Bitcoin Cash remains uncensored and available to anyone.
Transparent: All transactions are recorded on the blockchain, a global public ledger. The ledger is updated regularly in blocks that are linked to form a chain. This allows anyone to easily see the complete ownership history, reducing the possibility of fraud.
Distributed: A network of participants known as ‘nodes’ stores the public ledger (blockchain) voluntarily. This contributes to the long-term viability of information.
Rules-Based: To reach a consensus on the ledger’s state, nodes follow a set of rules (a protocol). This agreement is what constitutes the “truth” about who owns what. On the other hand, the protocol can evolve as participants demand, though changes require a high level of agreement. As a result, Bitcoin Cash is a quasi-political system, with participants entering into a social contract.
Immutable: Thanks to the technology, transactions cannot be changed once they are recorded in the blockchain.
Low Fees: BCH enables secure, quick, and low-cost transactions of any value and regardless of location (including cross-border transactions). As a result, it is a viable option.
Differences Between BTC and BCH
- Bitcoin Cash’s transaction costs are lower than those of Bitcoin.
- BCH transfers data at a faster rate. You will no longer have to wait 10 minutes for a Bitcoin transaction to be confirmed!
- BCH has a higher per-second transaction rate. This means that more people than BTC can use BCH simultaneously.
- Bitcoin Cash does not have the same level of consumer trust that Bitcoin enjoys.
- BCH has far fewer trading pairs than BTC, making it less tradeable than Bitcoin.
- Bitcoin remains the most expensive cryptocurrency, despite its recent price decline.
Conclusion
Because Bitcoin is older and more established in the crypto industry, it performs better as an asset. Bitcoin Cash still needs to prove itself, or it will end up like other failed forks like Bitcoin Gold, Bitcoin XT, or Bitcoin Classic.
