Wait for what is said after the term Bitcoin because, after August 2017, the term Bitcoin is not only relevant to the pioneer Bitcoin cryptocurrency but is also relevant to the latest Bitcoin Cash born out of it! Yes, there are now two different versions of the Bitcoins, viz, the Bitcoin and the Bitcoin Cash that happened to overcome the challenges faced by the Bitcoin Community!
The Hard Fork
For nearly two years the hardcore Bitcoin enthusiasts were preventing this ‘hard fork’ of the Bitcoin from happening but, finally, it has to happen to overcome the problems, especially the problems related to the processing of larger volumes of transactions as and when the Bitcoin community started expanding quickly! First of all, the term “hard fork” refers to the concept of scaling up the protocol to ensure that the technology functions in a much better way!
While it was decided to scale up the protocol, how to achieve it was where the actual problem was! There were two factions of the Bitcoin supporters, viz, the Bitcoin miners and the Bitcoin developers, in where the Bitcoin miners believed in using bigger blocks to accommodate larger volumes of transaction effortlessly that is, to simply put, increasing the block size of the Bitcoins! Whereas the Bitcoin developers believed in utilizing the concept of SegWit, in where the data is compressed to accommodate more in the available Bitcoin block size!
Not able to reach a common solution, the community decided to have the unavoidable Bitcoin “hard fork” in the year 2017, in where the Bitcoin Cash, the concept favored by the Bitcoin miners was born! Yes, here the block size is larger than the conventional Bitcoin, which is 8 MB!
The significant differences
Although the Bitcoin Cash or BCH was born out of the Bitcoin, it is a different cryptocurrency offering different benefits than the Bitcoin!
- The block size of the BCH is larger, which is 8 MB, and therefore, nearly two million transactions per day can be processed effectively by the network!
- This also means a faster transaction, than what that could be offered by the Bitcoin
- It is also said that the transaction fees associated with the Bitcoin cash are lesser when compared to the conventional Bitcoin network!
Although there are noticeable differences, still, the acceptance level of the BCH is lesser, as there are more people believing in the powers of the Bitcoin, supported by the powerful infrastructure behind it! For example, the Bitcoin has nearly 10X more full nodes than the Bitcoin Cash, proving that it is a more distributed network!
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