Bitcoin Cash (BCH)

Bitcoin Cash was generated by group of investors, developers, miners and entrepreneurs who were not happy with Bitcoin’s growth plans. Bitcoin cash was originated in August 2017, is a peer-to-peer cash system which is electronic and stresses on enhanced scalability and lowered transaction fees. This project is recognised as Bitcoin ABC (Adjustable Blocksize Cap).

About Blockchain Scalability

Bitcoin was facing serious issue of long transaction confirmation for various times, with transaction fees growth in 2017, detracting from its basic premise of remaining close to instant payments with lowered fees. Even before Bitcoin Cash could be formed, there did heavy debate in Bitcoin community for raising the conclusions so drawn for enhanced block size limit. As Bitcoin is decentralised, the expected changes to protocol demands widely announced agreement. So, each network node requires for reaching the consensus while making changes and updates in Bitcoin Software.
Bitcoin Cash was represented as higher scalable cryptocurrency with lowered transaction fees and confirmation times. BCH community had disagreed with concern with project is much in line with Satoshi Nakamoto’s proposal of peer-to-peer electronic currency. The basic reason behind all this is that altcoin intends to offer fast and cheap payment system which could be more effective than Bitcoin for its recurrent use.
Original Bitcoin blockchain had gone by way of most awaited soft fork upgrade for implementing a technology, popularly named as SegWit (Segregated Witness). This upgrade was build in 2015 by Bitcoin developer Pieter Wuille. This was so build on Bitcoin network for answering the network congestion and various other issues concerning scalability. SegWit soft work had planned before BCHhard fork, but the proponents of Bitcoin Cash have a belief that SegWit was a inferior alternate to an enhanced block size limit. Bitcoincash fork from the Bitcoin had support from notable members of blockchain industry, involving Jihan Wu (co-founder of Bitmain) and Roger Ver (CEO of Bitcoin.com).

Working Of BCH

The original source code of Bitcoin was used to attain Bitcoin Cash, so there are various similarities as well. Both these networks are on Proof of Work mechanism and are open for everyone who are interested in contribution and joining. Any address which is having BTC prior to the fork, receive an equal value of BCH after the fork (similar address string, but on different networks).
As Bitcoin, BCH is also having target block time of 10 minutes and a maximum supply of 21 million coins. Also the rate of emission of BCH halves at each 210,000 blocks (round off at each 4years). The present block reward is 6.25 per block. Not as Bitcoin, but Bitcoin Cash is having enlarged block size limit, thereby allowing for more transactions, to get involved in each block. The limit of block size had at initial stage rouse from 1MB to 8MB and then gone higher in 2018 to 32 MB.
Actually both Bitcoin Cash and Bitcoin had to adjust their mining difficulty, with the help of popularly known ‘difficulty adjustment algorithm’(DAA). Bitcoin tends to make adjustments with each 2016 blocks, where the mining difficulty of Bitcoin Cash is adjusted after every block.
Bitcoin Cash, with reference to past has implemented an emergency difficulty adjustment (EDA) algorithm for decreasing mining difficulty and incentivise miners for joining the network. But the algorithm had to be removed some how afterwards cause of certain instabilities. The EDA implementation is amongst the reasons of BCH blockchain being thousands of blocks ahead of Bitcoin.
In addition to this, in 2019 Bitcoin Cash had installed a technology known as Schnorr Signatures, an alternate algorithm which changes the manner of digital signatures being used. The Schnorr Signatures scheme is secure and simple and renders more scalability and privacy than the ECDSA scheme, which at present is used by Bitcoin.

Features Of BCH

• Source code of BCH was on original Bitcoin protocol and its supply was capped at 21 million.
• Being a fork of Bitcoin, BCH uses Proof of Work (POW) mechanism for issuing of new coins, it also went on increasing the block size from 1 MB to 32 MB. To this, the community is of the view that BCH ethos aligned more near to Satoshi’s original plans.
• The mining difficulty of BCH is likely settled after every block some how, with the aid of difficulty adjustment algorithm (DAA).
• Implementation of SegWit wasn’t done by BCH.
• In 2019, BCH had implied Schnorr Signatures.
• It didn’t underwent, implementation of SegWit.
• Creation of Smart contract development was done as later update.

Regular Payments

The community of Bitcoin Cash is defending that BCH is purposely made for being used as money. One could easily use the same for just sending and receiving money to and from anyone having BCH wallet, both individually and on business basis. Having faster transactions times and lowered fees, using of BCH regularly is a much better choice than Bitcoin, in specific to making of small payments. But, no doubt there are stores and merchants accepting Bitcoin Cash payments, still it’s not used as famous practice uptill now. In June 2021, Bitcoin.com Map flags various stores with acceptance of BCH, still a wide area of them is still not at present mentioned or given such payment option, thereby depicting that map is not updated.

Procedure Of Storing Bitcoin Cash (BCH)

There are various crypto wallets which tend to support BCH, but one of the best recommended one is Trust Wallet. The supporting BCH wallets are hardware wallets Trezor, Ledger and Cobo Vault. BCH could be effectively stored on desktop wallet as Electrum Cash. Where few of the proponents of Bitcoin Cash tend to suggest any as Bitcoin.com or Coinomi wallets for holding BCH. These software wallets are made available across Mac, Linux, Windows, Android and iOS. One more important fact attached with them is that BTC and BCH run on different blockchain networks. Therefore Bitcoin can’t be sent to Bitcoin Cash wallet address.

Bitcoin SV

Certain portion of Bitcoin Cash community in 2018 forked the protocol for creation of different cryptocurrency known as Bitcoin Satoshi Vision (popularly known as Bitcoin SV or BSV), having greater block size limit of about 2GB. BSV had also failed to attain larger support from the community of crypto and this lack of support from the community of crypto and adoption is linked to Craig S. Wright’s false claims of being inventor of Bitcoin, Satoshi Nakamoto.

Crux

BCH is one such appropriate project, amongst various of cryptocurrency projects being formed by Bitcoin. Although it has not reached that much popularity as others but had experienced similar heights as that of Bitcoin, there are some stores which one could explore for using BCH as mode of payment, basically due to its lowered transaction fees and rapid confirmation times.