Bitcoin Cash is a cryptocurrency that split from Bitcoin in 2017 to solve speed and cost issues. It offers faster transactions and lower fees by using larger data blocks than Bitcoin. While Bitcoin Cash shares similar features with Bitcoin, like a 21 million coin limit and 10-minute block times, it’s designed to work better as everyday digital cash. Recent updates have added smart contracts and digital asset capabilities, making it more versatile than ever.
Quick Overview
- Bitcoin Cash is a cryptocurrency that forked from Bitcoin in 2017 to provide faster and cheaper digital payments for everyday use.
- It features larger 32MB blocks compared to Bitcoin’s 1MB, allowing processing of around 100 transactions per second.
- Transaction fees are typically less than a penny, making it more practical for small purchases than Bitcoin.
- Like Bitcoin, it has a maximum supply of 21 million coins and uses the same proof-of-work mining system.
- Recent upgrades include CashTokens, enabling smart contracts and digital asset creation on the Bitcoin Cash network.
Bitcoin Cash emerged in 2017 as a new version of Bitcoin, created when developers split off from the original cryptocurrency to solve some of its biggest problems. The main goal was to make a digital payment system that’s faster and cheaper to use than Bitcoin. While Bitcoin was becoming more like digital gold, Bitcoin Cash wanted to be more like digital cash that people could use every day.
One of the biggest differences between Bitcoin Cash and Bitcoin is the size of their blocks. Bitcoin Cash can process way more transactions at once because it uses 32MB blocks, compared to Bitcoin’s 1MB blocks. This larger size means Bitcoin Cash can handle about 100 transactions per second, while Bitcoin can only do about 7. It’s like having a bigger highway with more lanes – more cars can pass through at the same time.
The network runs on the same basic technology as Bitcoin, using something called proof-of-work and the SHA-256 mining algorithm. Like Bitcoin, there will only ever be 21 million Bitcoin Cash coins created. It also keeps the same 10-minute block time, which is how long it takes to create new blocks of transactions. The split occurred at block 478558 when developers implemented the hard fork.
What makes Bitcoin Cash stand out is how cheap it is to use. Transaction fees are usually less than a penny, while Bitcoin’s fees can sometimes cost several dollars or more. The network doesn’t use SegWit, which is a technical feature Bitcoin added to help with its scaling issues. Instead, Bitcoin Cash chose to solve scaling by simply making the blocks bigger.
Recently, Bitcoin Cash has been growing its capabilities. In May 2023, it added something called CashTokens, which lets developers create smart contracts and decentralized applications on the network. This means people can do more than just send money – they can create digital assets and run programs on the blockchain. Unlike traditional utility tokens, CashTokens don’t require an Initial Coin Offering (ICO) to be created on the network.
Many cryptocurrency exchanges and digital wallets support Bitcoin Cash, making it easy for people to buy, sell, and store. Some businesses have started accepting it as payment, though it’s not as widely accepted as traditional money or Bitcoin.
The project has an active community of developers who keep working on improvements and updates to make the network better.
Bitcoin Cash shows how cryptocurrencies can evolve to meet different needs. While it shares many features with Bitcoin, its focus on being fast and cheap to use sets it apart as a digital payment system.
Frequently Asked Questions
How Do I Convert My Bitcoin to Bitcoin Cash?
Converting Bitcoin to Bitcoin Cash happens through cryptocurrency exchanges.
Users pick a trusted exchange, create an account, and verify their identity.
They’ll transfer their Bitcoin to the exchange’s Bitcoin address and wait for confirmation.
Then, they can trade Bitcoin for Bitcoin Cash at the current market rate.
Once complete, they’ll withdraw the Bitcoin Cash to their personal BCH wallet address.
Which Crypto Exchanges Support Bitcoin Cash Trading?
Bitcoin Cash (BCH) is supported on many popular crypto exchanges. Major platforms like Binance, Coinbase, and Kraken offer BCH spot trading.
Decentralized exchanges like Uniswap and PancakeSwap allow BCH trading through wrapped tokens. P2P platforms such as LocalBitcoins and Paxful let users trade BCH directly with others.
There are also specialized platforms like Bitcoin.com Exchange and CoinEx that focus specifically on BCH trading pairs.
What’s the Maximum Transaction Speed for Bitcoin Cash?
Bitcoin Cash can handle around 100-200 transactions per second (TPS) with its 32 MB block size.
That’s way faster than Bitcoin’s 3-7 TPS, but still much slower than traditional payment systems like Visa, which can process 24,000 TPS.
The network typically confirms transactions within 10-30 minutes, with blocks being created every 10 minutes.
During busy times, network congestion can affect these speeds.
Are Bitcoin Cash Transactions Traceable?
Bitcoin Cash transactions are traceable since they’re recorded on a public blockchain that anyone can view.
While transactions don’t show real names, they create a permanent record that’s visible through blockchain explorers.
Law enforcement can track these transactions using specialized tools and forensic techniques.
Though it’s pseudonymous like Bitcoin, various methods like exchange data and transaction pattern analysis can help link transactions to real identities.
Can I Store Bitcoin Cash in Any Cryptocurrency Wallet?
Not every cryptocurrency wallet can store Bitcoin Cash (BCH). Users need wallets specifically designed to work with the BCH blockchain.
While some multi-currency wallets like Exodus and Jaxx Liberty support BCH, others don’t. Popular BCH-compatible options include the Bitcoin.com wallet and Electron Cash.
Hardware wallets like Ledger and Trezor also support BCH storage. It’s similar to how different phones need different types of chargers.
