What is Bitcoin Cash?
Bitcoin Cash, like Bitcoin, is a payment system on a decentralized network powered by blockchain technology. Again, as a user, you are not dependent on financial institutions that act as third parties. Bitcoin Cash was created after years of discussion about the best way to scale Bitcoin to a more user-friendly platform. Bitcoin Cash finally saw the light of day on 1 August 2017.
Bitcoin Cash specifications
- Protocol Proof of work (mining)
- Algorithm SHA-256
- Total number 21,000,000
Features of Bitcoin Cash
Since Bitcoin Cash is similar to Bitcoin in terms of functionality and underlying technology, there are many similarities between its features. For example, the ease of use and level of anonymity are the same. Bitcoin Cash should outperform Bitcoin in speed and transaction fees. Bitcoin still wins over Bitcoin Cash when it comes to practical payment options outside the crypto world.
Technology behind Bitcoin Cash
The technology behind Bitcoin Cash is very similar to Bitcoin. But what is the difference between Bitcoin and Bitcoin cash? The technological differences are briefly explained below.
Bitcoin Cash VS Bitcoin
To make Bitcoin Cash suitable for more users without losing speed, two changes were made to the source code copied from Bitcoin; increasing the block size and revising the block difficulty frequency.
Bitcoin Cash has a block size of 8 MB instead of 1 MB. This increase allows for more transactions per block and thus a faster functioning blockchain.
Bitcoin Cash revises the difficulty of the mathematical puzzles in the blockchain every 6 blocks instead of every 2016 blocks. This allows for more flexibility in balancing security and speed.
Both adjustments allow Bitcoin Cash to handle two million transactions per day. For Bitcoin this number is around 250,000 transactions per day. In practice, this means faster payments and lower transaction fees.