Bitcoin Cash (BCH) is a cryptocurrency that was created in 2017 as a result of a hard fork from the original Bitcoin (BTC) blockchain. Bitcoin Cash is designed to be faster and cheaper to use than Bitcoin, with the goal of creating a more efficient digital currency that can be used for everyday transactions.
One of the main differences between Bitcoin and Bitcoin Cash is the way their respective blockchains handle transaction fees. Bitcoin has become increasingly popular in recent years, but its popularity has also led to congestion on the network. As more people use Bitcoin, the amount of time it takes to process transactions has increased, and the fees associated with those transactions have also gone up.
Bitcoin Cash was created as a solution to this problem. The developers behind the cryptocurrency wanted to create a blockchain that could handle more transactions per second than Bitcoin, while also keeping fees low. To achieve this, they increased the block size limit from 1MB to 8MB, allowing more transactions to be processed in each block.
Bitcoin Cash also uses a different mining algorithm than Bitcoin. Bitcoin uses a proof-of-work algorithm called SHA-256, while Bitcoin Cash uses a modified version of the same algorithm called SHA-256D. This modification allows Bitcoin Cash to be mined using the same hardware as Bitcoin, but with a lower difficulty level, making it easier and less expensive to mine.
Another difference between Bitcoin and Bitcoin Cash is the level of decentralization. Bitcoin is often criticized for being too centralized, with a small number of mining pools controlling a majority of the network’s hash rate. Bitcoin Cash, on the other hand, has a more decentralized mining ecosystem, with a greater number of mining pools and individual miners participating in the network.
Bitcoin Cash also has a different governance structure than Bitcoin. Bitcoin is governed by a loose group of developers and users who make decisions about the network through a process of rough consensus. Bitcoin Cash, on the other hand, has a more formalized governance structure, with a set of development teams and a council of representatives from the mining community who make decisions about the network’s future direction.
Despite these differences, Bitcoin and Bitcoin Cash share many similarities. Both are decentralized, open-source cryptocurrencies that use blockchain technology to secure transactions. Both also have a limited supply, with a maximum of 21 million coins that will ever be created.
In conclusion, Bitcoin Cash was created as a faster and cheaper alternative to Bitcoin, with the goal of making it more accessible for everyday use. It differs from Bitcoin in several ways, including its larger block size, modified mining algorithm, and more decentralized governance structure. However, both cryptocurrencies share many similarities and are designed to be secure, decentralized, and useful for a wide range of transactions.