Since the arrival of blockchain technology, two groups set off to advance the platforms. The first group includes those developers who are focused on generating new currencies. About 1000 cryptos have entered the market between 2008 and 2017. The second group focuses on developing new cryptos designed as layers that work on the existing platforms. This can be based on the need to implement new technology or a necessitated decision from issues on the current blockchain. Some great examples of the second group cryptos are the Ethereum and Bitcoin Cash. In this post, we take a closer review of Bitcoin Cash.
What is Bitcoin Cash?
Bitcoin Cash is a clone of the Bitcoin blockchain but with one crucial feature; an additional block size. It is, therefore, crucial to have the bigger picture of Bitcoin and its operations to understand Bitcoin Cash. Bitcoin Cash was launched on 1st August 2017 by Bitcoin Developers. The main reason for forming Bitcoin Cash was to address the block size limitations that characterize Bitcoin.
When Satoshi introduced Bitcoin in 2009, one of the most significant things was that the block sizes were limited. To buy and sell Bitcoin, users were required to maintain records of the whole blockchain. Look at it this way; it is like asking a user to download the entire Google history if he wants to carry a search. Because of this operation, Bitcoin became anonymous with DOS (denial of service) attacks. Hackers found this platform ideal to stuff meaningless transactions that made it very difficult for users with slow PCs. The Bitcoin community tried to address this by limiting the block size to 1 MB.
However, even the 1-megabyte block size still limits the speed of transactions to only 4-7/second. This is still limited compared to other top giants such as PayPal and Visa that can process 2000 transactions every second. The newer and more innovative wallet was, therefore, inevitable to keep Bitcoin relevant and aggressive enough amidst the fast emerging competition. This led to the birth of Bitcoin Cash.
Bitcoin Cash seeks to solve the scaling problem by increasing the present block sizes from one to eight megabytes. This means increasing the number of transactions that can be processed every day.
Despite the concerns from critiques that bigger block sizes could ultimately cause centralization of mining operations, the new crypto has gained a lot of popularity. Since its arrival on 1st of August, the price has doubled from $300 to more than $600. Investors are starting to worry that Bitcoin Cash could become a serious threat to Bitcoin.
When Bitcoin Cash was launched, the existing coins were divided into two with each having 16.5 million. If you multiply this with the price of about $607, you will get the market capitalization is about $10.8 billion. This makes Bitcoin Cash one of the top most valuable Cryptocurrencies in the market today.
How Bitcoin Cash Works?
To use Bitcoin Cash, you are required to download an appropriate wallet and install it in a computer. Like Bitcoin, Bitcoin Cash utilizes ledgers to keep all the transactions taking place on the platform. The wallet you install makes you part of the Bitcoin Cash network to trade or use the platform.
The Bitcoin Cash platform employs cryptographic validation that makes it possible to link with every block. The blockchain’s hashing algorithm helps with controlling information and preventing any form of duplication. After a transaction has been done, the ledger records and releases it to the network. All the computers in the network are required to solve a complex puzzle to validate the transaction. The first user/node to confirm the answer to the puzzle is rewarded with Bitcoin-Cash (this is referred as mining).Every block has a crucial self-correcting system that helps to either speed or slows the rate.
Once a block has been validated, it gets stamped and immediately included in the main Bitcoin Cash platform. The process is done continuously and chronologically for clear presentation of coins ownership.
Main features of Bitcoin Cash
These are some of the most important components of Bitcoin Cash. They are unique computer protocols that seek to facilitate, verify, and enforce the different performance contracts. Ethereum first crafted them before being taken by almost all other cryptos in the market today.
Other platforms like Coinprism allow their users to issue colored coins based on Bitcoin. Colored coins are used to provide a link between the real world and Crypto world that has remained unclear to most people. The colored coins can be used to buy shares, real estate, and even pay dividends. The colored coins are considered one of the latest developments for linking the local markets to the ‘mysterious’ blockchain operations.
Private keys/ seeds
A transaction is the transfer of value between various Bitcoin Cash wallets. Bitcoin Cash wallets store digital data called seed/private keys used for signing transactions. The seeds provide mathematical proof that the owner has opened the wallet. Besides, they also prevent alternation by other people once a confirmation has been issued.
This is a distributed system of consensus that helps to confirm wallet transactions by adding them into the Bitcoin blockchain. The mining is implemented in chronological order to protect the neutrality of the Bitcoin network while allowing different computers to agree. Mining is guided by special rules that prevent previous confirmations from getting modified.
Pros of Bitcoin cash
- Bitcoin cash was designed to address a serious problem that everyone on the Bitcoin platform could see. This means that Bitcoin is a new lease of life for the Bitcoin.
- Because Bitcoin Cash can handle a lot of transactions more efficiently and securely, more big players are taking it. This has helped to advance the credibility of Bitcoin Cash.
- The fact that Bitcoin Cash is fundamentally Bitcoin has helped to yield trust in the crypto world. This is the reason behind the fast Bitcoin Cash growth in less than two months of the blockchain existence.
- Unlike other cryptos that miners find very hard to understand and use, Bitcoin Cash is very different. Its ease of use and link to Bitcoin has made it a great attraction to miners. Besides, the bigger block size means more transactions and ultimately more fees.
Cons of Bitcoin cash
The biggest undoing of the Bitcoin Cash is that it is very young. In fact, it is the youngest in the Cryptos world. Even if people are having a lot of trust in it, many are those who still hold some skepticism of its ultimate future.
Bitcoin Cash Price
Where to Buy and Sell Bitcoin Cash in Australia?
Crypto Currency for Fun recommends buying Bitcoin Cash at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Bitcoin Cash and they offer Instant Delivery or your coins right into your account.
The blockchain technology is a new kid in the globe, and new challenges are expected to keep emerging. The new options to address these issues are better, and you should not hesitate to adopt them. Bitcoin Cash is one such solution that has won the hearts of many users. If you are looking for a great crypto out there, Bitcoin Cash is one great option.