Bitcoin Cash: What does it consist of and what does it mean for the community?
You may have heard by now that Bitcoin split in two. The divergence began at 12:37 pm (UTC), when the network reached block 478558. Thereafter, Bitcoin Cash took a big step, but it required processing a block of Size greater than 1 MB to seal the split. It was at 6:14 pm (GMT) when the ViaBTC pool extracted the first block, 1915175 bytes or 1.9 MB in size, holding 6,985 transactions, and shortly after the second block, number 478560.
What are the characteristics of Bitcoin Cash:
- Increase in block size limit: BCH provides an immediate magnification of the block size to 8 MB.
- Coexistence guaranteed: Bitcoin Cash minimizes user interruption, allowing secure coexistence with the original Bitcoin chain.
- New Signature Hash: Bitcoin Cash introduces a new way to sign transactions, which brings additional benefits such as signing input values to improve hardware portfolio security and eliminating the quadratic hash problem.
But let’s start with some basics.
What is Bitcoin Cash?
BCH is a new fully decentralized crypto currency, which does not require third parties to operate. It is the continuation of the Bitcoin project as a digital point-to-point asset, with updated consensus rules that allow it to grow and scale; It was born thanks to the original Blockchain bifurcation, so many users now have a ratio of 1: 1 in their funds between BCH and Bitcoin, although, logically, these amounts are stored by a change platform.
Another important feature is that Bitcoin Cash eliminates SegWit, a scalability protocol that could be activated in Bitcoin’s Blockchain in late August, and which, for a long time, divided the community. Some supporters of the project refer to Bitcoin Cash as an “altcoin,” a term normally used to address a criptocurrency other than Bitcoin. It should be noted that the project will support multiple implementations of its software, a move that is not surprising if we take into account the many criticisms of Bitcoin Core, thanks to its domination in the Bitcoin network.
As for transaction handling, Bitcoin Cash’s movements use the new SIGHASH_FORKID, which is not standard for the Blockchain Legacy. This is what prevents BCC transactions from being reproduced in the Bitcoin block chain and vice versa. The birth of BCH was very necessary, since the original code had a limit of 1 MB in size per block, which is equivalent to about 3 transactions per second. Although it was technically simple to raise that limit, years of debate were not enough for the community to reach consensus.
In fact, in 2017, Bitcoin’s capacity reached a turning point: rates soared and the crypto currency became unreliable, with many users unable to see their transactions confirmed, even after several days of waiting. Traders, companies and investors left Bitcoin, so their market share compared to other Crypt-Coins plummeted from 95% to 40%. Bitcoin Cash assumes an increase in the limit size of the block to 8 MB, so there will be an ample capacity to execute the transactions of all.
Some users still do not understand why Bitcoin did not increase the size of the block if it was simple, but everything happened because several developers preferred that Bitcoin became a layer of settlement where only a few could write in the Blockchain. This group was joined by many miners and users, while others felt that they were leading people to a path that was not Bitcoin. With two incompatible visions, the community split.
Who is in charge of Bitcoin Cash?
Unlike Bitcoin, BCH does not have a single development team. Right now there are several independent teams that are involved in ecosystem growth, but it is clear that the Vietnamese mining company, ViaBTC, which owns no less than 4% of Bitcoin’s computing power, is the leader.
Bitcoin Cash has attracted the attention of many people who demanded an increase in the size of the block, as well as developers of other proposals like Bitcoin Classic and Bitcoin Unlimited, although, finally, the latter did not get involved. It should be noted that the mining company Bitmain inspired Bitcoin Cash, although the company already stated that, although they will not lend their support at the moment, they do not close the door to do so in the future.
What does BCC bring to its community?
With exchange houses managing tokens and new owners taking control of their assets, one of the big questions is what will happen around the price of BCH. Although it is very likely that disagreements about their birth continue, the truth is that when it comes to the chain of blocks, only the market can decide. Stay tuned.