Bitcoin Cash

Cup of Coffee with BTC?

The transaction issue has divided the Bitcoin community into two groups. One group claims that Bitcoin was never designed to be a “cup of coffee” payment solution, the other says that it has to scale. As neither group was ready to give up, in August 2017 Bitcoin was basically split using a process called “Hard Fork”, which created a new version of Bitcoin called Bitcoin Cash. Bitcoin Cash uses the same codebase, but with a Blocksize limit of 8Mb. This increased limit makes possible a performance of around two million transactions processed per day.

 

Mining Pools

Larger Blocksize limit (8MB). As a result – more transactions are able to be processed for a cheaper fee.

–   Bitcoin has lots of mining pools, so no one is strong enough and a situation where a single miner has a majority of 51% to rule them all is quite impossible.

Bitcoin Cash, on contrary, is highly centralised. Right now we already have 3 mining pools that make more than 51% together. This can be a dangerous situation because the future of the currency becomes too reliant on these three.

 

Technical differences

Bitcoin Cash is aware of its weaknesses and added protection adjustments to close these gaps and make the new currency safer for all to use.  

Replay and Wipeout Protection

Bitcoin Cash uses a different hash algorithm to the one Bitcoin uses. So, the replay between the two chains is no longer possible.

On-chain scalability

Bitcoin Cash’s technology allows for an increase in the number of blocks. Right now it is 8MB and further increases are possible.

New transaction signatures

Bitcoin Cash has a different transaction signature to verify its distinction from Bitcoin.

Emergency Difficulty Adjustment (EDA)

A new algorithm which ensures normal chain performance in the face of dramatic changes of the number of miners. This provides additional stability to the currency as a whole.

 

BCH and BTC Basics – Transactions Making it to the Ledger

For transactions to make it to a ledger, a miner has to do three things:

a) Validate that the transaction is legit (enough balance)

b) Create / Find a new key that will be used to tie the PREVIOUS transaction on the chain with the current one being validated.

c) Wait for other miners to CONFIRM his discovery of the key and the finalization of the block.