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Everything you need to know about Bitcoin Cache (BCH)

BingMag.com <b>Everything</b> <b>you</b> <b>need</b> to <b>know</b> <b>about</b> <b>Bitcoin</b> <b>Cache</b> (BCH)

In this article, we look at Bitcoin Cache (BCH), which is one of the most popular cryptocurrencies among traders.

When the difference The opinion among the activists of a blockchain is rising, one of the ways to end the disputes is to use hard forks. (Hardfork is simply a change in the rules of a blockchain that is not compatible with older versions, so older versions can not work on the network. So, to join the network, you will have to upgrade your version.)

The Bitcoin Cash (BCH) was created by a group of developers, investors, entrepreneurs and miners who were dissatisfied with Bitcoin development plans. Launched in August 2017, Ramzarz is a peer-to-peer electronic cash payment system that focuses on increasing scalability and low transaction fees. The project is also known as the "Adjustable Blocksize Cap" bitcoin, abbreviated (ABC). Join BingMag to check out these cryptocurrencies.

Scalability in blockchains

BingMag.com <b>Everything</b> <b>you</b> <b>need</b> to <b>know</b> <b>about</b> <b>Bitcoin</b> <b>Cache</b> (BCH)

Bitcoin suffered in 2017 from the long time it took to verify transactions, as well as the ever-increasing network fees, which pushed Bitcoin away from its core aspirations of instant payments with low fees. Before the creation of Bitcoin cache, there was a heated debate in the Bitcoin community about the consequences of increasing the block size limit.

Because Bitcoin is decentralized, the proposed changes to the protocol require broad agreement. Therefore, all network nodes must agree when making changes and updates to the Bitcoin software.

Bitcoin Cache was introduced as a more scalable digital currency with lower transaction costs and verification times. The cryptocurrency community argues that the project is more in line with Satoshi Nakamoto (creator of Bitcoin) criteria for peer-to-peer digital currency. Mainly because Altcoin offers a faster and cheaper payment system that may be more convenient for day-to-day use of Bitcoin. Which took a long time to implement. (Softfork is a blockchain update that is backwards compatible. In simple terms, Softfork does an update on the blockchain, but those who do not want to upgrade can still play a role in validation.)/p>

This upgrade was made a long time ago in 2015 by the famous Bitcoin developer "Pieter Wuille". This upgrade was implemented to eliminate network congestion and other scalability problems in the Bitcoin network. The SegWit soft fork was planned before the Bitcoin Cache hard fork, but fans of the currency believed that SegWit was not a good way to increase the block size limit. Bitcoin Cash Fork Bitcoin was backed by some prominent members of the blockchain industry, including Ceyhan Wu (co-founder of Bitmain) and Roger Ware (CEO of Bitcoin.com).

Take with them. Proponents of Bitcoin believed that as the size of each block increased, the size of the blockchain would increase, so many network operators would not be able to continue to store transactions, jeopardizing this decentralization.

Works

BingMag.com <b>Everything</b> <b>you</b> <b>need</b> to <b>know</b> <b>about</b> <b>Bitcoin</b> <b>Cache</b> (BCH)

There are many similarities between There are two. For example, both networks have a proof of consensus algorithm. Also, before the fork, every address that had BTC received an equal amount of BCH after the fork (because they had the same address string but on two different networks.)

Similar to bitcoin, Bitcoin Cache also It takes 10 minutes to create each time block and has a maximum supply of 21 million coins. The Bitcoin Cache release rate is halved every 210,000 blocks (approximately every four years) during an event called "Hawing". The bonus amount per block is currently 6.25 BCH.

Unlike bitcoin, the block size limit in Bitcoin Cache has been increased to allow more transactions to be included in each block. The block size limit was initially increased from 1 MB to 8 MB and then increased again to 32 MB in 2018.

However, in practice, the average Bitcoin Cache block size since 2017 is only a few times that of Went beyond 1 MB. If needed, you can see a comparison between the average block size of BTC and BCH at BitInfoCharts.com. However, Bitcoin Adjusts its extraction hardness in each 2016 block, while the Bitcoin Cache extraction difficulty is adjusted after each block.

In the past, Bitcoin Cache had an emergency hardness adjustment (EDA) algorithm to reduce hardness Extracted and encouraged extractors to join the network. However, the algorithm was not welcomed after some time due to instability and was removed from the network. Implementing EDA is one of the reasons why the BCH blockchain is thousands of blocks ahead of Bitcoin.

In 2019, Bitcoin implemented a technology called "Schnorr Signatures", an alternative algorithm that uses the signature Changes the digital. The Schnorr Signatures scheme is simple and secure, allowing it to have more privacy and scalability than the ECDSA scheme currently used by Bitcoin.

Important Key Features of Bitcoin Cache

  • The Bitcoin Cache source code was based on the original Bitcoin protocol.
  • The supply limit is limited to 21 million coins.
  • Bitcoin Cache also uses the Proof of Consent (PoW) mechanism to release new coins.
  • Increase block size from 1 MB to 32 MB.
  • The community argues that Bitcoin Cache is more Satoshi Nakamoto's main aspirations are near.
  • The difficulty of extracting Bitcoin Cache after each block is adjusted by the hardness adjustment (DAA) algorithm.
  • Bitcoin Cache did not implement SegWit technology .
  • Bitcoin Cache launched Signatures Schnorr in 2019.
  • Smart contract development will be available in the next update.

Daily Payments

BingMag.com <b>Everything</b> <b>you</b> <b>need</b> to <b>know</b> <b>about</b> <b>Bitcoin</b> <b>Cache</b> (BCH)

Bitcoin Cash Community It is believed that BCH is designed to be used as money. These passwords can be used to send and receive money quickly from anyone who has a BCH wallet, both personally and for business. With fast transaction times and low fees, BCH may be more suitable for daily use of bitcoin, especially when making small payments.

While there are stores and businesses that accept Bitcoin Cache as a way to pay, It seems that this method has not been successful yet. Since June 2021, the reputable site Bitcoin.com has been presenting a map showing thousands of stores that accept BCH as a way to pay, but the interesting thing is that a large number of them have not mentioned such a payment option at the moment or Do not offer.

What is Bitcoin SV?

BingMag.com <b>Everything</b> <b>you</b> <b>need</b> to <b>know</b> <b>about</b> <b>Bitcoin</b> <b>Cache</b> (BCH)

In 2018, part of The Bitcoin Cache community re-launched another fork that resulted in a digital currency called Bitcoin SV, or Satoshi Vision, with a block size limit of even larger than 2 GB.

Calvin Eyre was sponsored and this event is also known as Hash War. However, Bitcoin SV has not been able to gain widespread support from the digital currency community. The lack of support and acceptance of Bitcoin SV is probably due to Craig Wright's false claims about the inventor of Bitcoin, Satoshi Nakamoto. (He has repeatedly identified himself as the inventor of Bitcoin and declared himself Satoshi Nakamoto.)

Summary

Among the thousands of digital currency projects that have branched out from Bitcoin, BCH is one of the projects Has been able to relate relatively closely to its source code. Although it may not have been as popular as Bitcoin, you can still find stores that accept BCH as a way to pay because of their low fees and faster verification times.

However, block sizes Larger ones also have network security concerns, making Bitcoin still the most secure blockchain network. Also, Bitcoin remains the most popular cryptocurrency, meaning that BCH has less market liquidity and acceptance than BTC.

The information in this article is for general educational purposes only and is not recommended at all. Not an investment.


Source: Binance Academy / bitcoincash.org

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