The digital currency world is growing exponentially with the evolution of coins, wallets, software applications, and exchanging platforms. Since the digital market development, several currencies have been discovered, and Bitcoin Cash is one of them. The article throws light on Bitcoin Cash and explains its various factors, including the difference between bitcoin and bitcoin cash.
What is bitcoin cash?
Bitcoin Cash is a cryptocurrency. BCH denotes it. As the name suggests, it is a fork of bitcoin. It offers more scalability than the original bitcoin. It is a peer-to-peer electronic transactional system that uses a network of computers or nodes. These nodes are connected for transactional purposes.
It works on the same distributed ledger system as that of a bitcoin with a difference in the size of the block. The block size is larger; therefore, it offers more transactions. So it has provided a solution to one of the main challenges faced by top digital currency: scalability. The split was followed in 2017. By 2018, the bitcoin cash was further divided into Bitcoin Cash ABC and SV (Satoshi Vision). Visit The official Crypto Engine for more information on bitcoin trading.
How does it work?
BCH works on a peer-to-peer network system that uses computers as nodes. Miners create a block containing information about the transaction, which is further verified by all the nodes. The miners get BCH as a reward. The block size of BCH offers 8MB to 32MB, which is much more than bitcoin. This leads to a faster transactional system.
What are the uses of Bitcoin Cash?
BCH can be used for sending and receiving money. It can be used to buy something, send money anywhere, store value, or pay utilities for investment purposes.
How is bitcoin cash (BCH) different from bitcoin (BTC)?
Bitcoin cash is an advanced version of bitcoin. The innovations of BCH are listed as follows:
Increased block size:
The block size of bitcoin is 1MB, whereas the bitcoin cash offers a size of up to 32 MBs. The greater storage capacity of the block can increase the load of transactions. This makes it efficient and faster.
The smart contracts on BCH use a different language than BTC. It provides the users with more complex functionalities such as decentralized finance applications and a private payment system.
BCH helps the users to create tokens on the BEACH blockchain. For instance, Ethereum created live USDT tokens on the BCH blockchain. It has also enabled the use of non-fungible tokens (NFTs)
Bitcoin Cash offers the users a characteristic of the Schnorr signature scheme to enhance security.
What are the advantages of BCH?
BCH benefits the users in various ways, including the following:
- It uses meager transactional fees.
- The greater block size has resulted in a much efficient and faster system.
- It was mainly designed to solve the scalability issue of BTC, and it is promising.
What are the risks associated with BCH?
Like all other cryptocurrencies, BCH poses some serious risks to users. Some of the severe risks are mentioned below:
- Digital currency is highly volatile.
- Liquidity is another primary concern of BCH.
- It is vulnerable to cyber-attacks.
- Where can I buy BCH?
- Bitcoin Cash is available on most digital exchanges, including Coinbase, Coinmama, etc. But, before you buy any cryptocurrency, you must have a place to store it. That place is termed crypto wallet and is available on various exchanges, including Coinbase.
- Where can I store BCH?
- Bitcoin Cash can be stored on a crypto wallet. The wallets are available in several forms, and the best one is in the mobile phone. A mobile wallet is always accessible and can be made safer with the help of public and private keys.
The bottom line
BCH followed a split from the original Bitcoin by hard fork mechanism. It solved the main challenge with the native BTC, which is scalability. The BCH size ranging from 8MB to 32MB provides a greater storing size to increase the transaction from 10 per second to 200 per second. But it still poses some risks, just like the other digital currencies. Detailed knowledge of crypto is a must before investing money in crypto.