The blockchain that was used initially for Bitcoin (BTC) was split off in 2017 and used to produce a new cryptocurrency known as Bitcoin Cash (BCH). It was conceived as a solution to some of the scalability problems that Bitcoin was experiencing, particularly the restricted block size of 1 MB, which made it challenging to handle large transactions in a timely and effective manner.
The split was started by a group of developers who were opposed to the choice made by the Bitcoin community to use the Segregated Witness (SegWit) technology as a solution to the scaling issue. They instead advocated a hard fork of the Bitcoin blockchain, which would boost the block size limit to 8 MB. This would make it possible to conduct larger transactions while also reducing the amount of time it takes to execute them.
Bitcoin Cash is a decentralized digital currency that uses the same open-source blockchain technology as Bitcoin. However, there are a few fundamental distinctions between the two. The most apparent difference is the increased block size limit, which has now been further extended to 32 MB. This restriction has recently been increased
even further. This has allowed Bitcoin Cash to process larger transactions more efficiently than Bitcoin, making it a popular choice for those wishing to conduct large-value transactions swiftly.
Bitcoin Cash, in addition to having a higher block size, has a one-of-a-kind method for adjusting the difficulty of mining. This algorithm makes an adjustment to the difficulty of mining blocks once every 2016 blocks. The adjustment is made in response to the amount of hash power that is being utilized to mine the blockchain.
This makes it easier for miners with less computing power to take part in the network by ensuring that the mining difficulty is always proportional to the amount of computing power that is being employed. A bigger block size and the deployment of additional transaction formats, such as Canonical Transaction Ordering (CTOR), contribute to Bitcoin Cash’s lower transaction fees compared to Bitcoin.
This is another advantage that Bitcoin Cash has over Bitcoin. Because of this, it has become a popular choice among users who are interested in making both little transactions and larger ones. The fact that Bitcoin Cash can execute smart contracts is yet another important aspect of this cryptocurrency. On the Bitcoin Cash blockchain, this enables developers to create decentralized applications, also known as dapps, as well as programmable transactions, in a manner that is analogous to the functionality provided by Ethereum.
On the other hand, Bitcoin Cash has been met with opposition from a subset of the cryptocurrency community. These individuals contend that Bitcoin Cash is not genuinely decentralized because it is managed by a select few mining pools and developers. Concerns regarding network centralization have also been raised in response to the increase in the maximum size of individual blocks.
This is because the mining of larger blocks requires a greater amount of computer power, which could restrict the ability of smaller miners to take part in the network. In spite of these complaints, Bitcoin Cash continues to be one of the most popular cryptocurrencies, and it has a robust community of users and developers. Its support for smart contracts and decentralized applications (dapps) offers additional functionality
for developers who want to build on the blockchain. Its focus on larger transactions and cheaper fees make it a practical solution for users who want to make large-value transactions quickly. Moreover, its support for larger transactions makes it an attractive option for consumers.