What is Bitcoin Cash?
Bitcoin Cash (BCH) is a peer-to-peer electronic cash system for the Internet. It is a fully decentralized currency with no central banking institutions and requires no trusted third parties to operate. Bitcoin Cash is an upgraded version of the Bitcoin Core software released on August 1st, 2017 (1) featuring a blocksize increase of 8 MB with plans of expanding the blocksize further up to 32 MB by May 2018 without requiring a hardfork(2), Signature Hash (SigHash), and a new Difficulty Adjustment Algorithm (DAA).
Aside from just being an upgrade, Bitcoin Cash is also a new fork of the Bitcoin blockchain. This has resulted in Bitcoin Cash sharing the same blockchain history as Bitcoin Core starting from the genesis block all the way to block 478559 where the chain was split to two separate blockchains; effectively hardforking from Bitcoin Core.
Difference (BTC & BCH)
A list of the differences between Bitcoin Core and Bitcoin Cash is tabulated below:
|Features||Bitcoin Core||Bitcoin Cash|
|Blocksize||1 MB||8 MB, up to 32 MB by May 2018|
|Difficulty Adjustment Algorithm (DAA)||Emergency Difficulty Adjustment (EDA)||D601 or "Séchet’s DAA"|
|Developer Teams||1 (Blockstream)||8 (Bitcoin ABC, Bitcoin Unlimited, Parity Bitcoin, Bitcoin XT, Bcoin, BTC1, Bitprim, Bitcrust)|
|Address Format||Bech32||Bech32 + Cashaddr|
How does it Compare to Other Coins?
|Name||Transaction capacity||Block time||Maximum supply||Mining algorithm|
|Bitcoin Cash||28-112 tx/s(C)||10 minutes||21M||SHA256|
|Bitcoin Core||3.5-5.95 tx/s(S)||10 minutes||21M||SHA256|
|Litecoin||14-23.8 tx/s(S)||2.5 minutes||84M||Scrypt|
|Dogecoin||35 tx/s||1 minute||98B + 5B per year(I)||Scrypt|
|Ethereum||15 tx/s||15 seconds||90M + 15.5M per year(I)||Ethash|
Transactions are assumed to be around 285 bytes, based on the average size (in bytes) of transactions in Bitcoin.
(S) - Maximum transaction capacity can be increased depending on SegWit adoption. As of this writing, this is around 10% on Bitcoin Core, resulting in a gain of around 3.5% transaction capacity.
(I) - Inflationary, no definite limit to issuance.
(C) - Configurable. 8 MB per block, for 28 transactions per second, is the default. Miners can change this value up to 32 MB per block, and nodes with default settings will accept these. With further improvements to onchain scaling, Bitcoin Cash could be capable of millions of transactions per second.
Notable Key Traits
The first cryptocurrency. It has brand recognition, first mover advantage, lots of middleware and other softwares supporting it. Year-long debates concerning how to scale its transaction capacity led to a split in the Bitcoin community resulting in Bitcoin Core and Bitcoin Cash split coin; both laying claim to the name of Bitcoin.
Adoption: Most Bitcoin-related code can be used directly or easily adapted to support Bitcoin Cash. It has superior scaling to Bitcoin Core and greater number of developers dedicated to scale Bitcoin Cash further.
Inertia: Bitcoin Core will ask you to keep using the same software you always used as Bitcoin Cash will require Nodes to update their systems. Most Bitcoin-related code are being developed for Bitcoin Core or for both Bitcoin Core and Bitcoin Cash. Bitcoin Core's only developer, Blockstream, has lofty and complex solutions such as SegWit and the Lightning Network to solve the scaling issue.
Sometimes known as the 'Silver' to Bitcoin, Litecoin is the first coin to use the Scrypt mining algorithm in an attempt to avoid GPU- and ASIC-based mining. It now has GPU- and ASIC-based mining compatibility. Its low fees are due to high transaction capacity and shorter block times.
Popular for tipping, fast blocks with indefinite coin issuance.
- What are the differences between Bitcoin Core and Bitcoin Cash?
- How does Bitcoin Cash Compare to other cryptocurrencies?
- Will Bitcoin Cash increase Bitcoin's coin supply?
- Will colored coins reduce the fungibility of Bitcoin Cash?
- Who is involved in Bitcoin Cash?
- Which wallets support Bitcoin Cash?
- Is Bitcoin a viable Store of Value?
- What's the difference between a hard fork and a soft fork?
The Scaling Debate
- Won't the fees on Bitcoin Cash go up just as much if it's used as much as Bitcoin Core?
- Is BTC under a spam attack?
- Is Bitcoin Cash centralized by the larger blocks?
- Won't the Lightning network take the wind out of Bitcoin Cash' sails?