what is bitcoin cash?
bitcoin cash is a peer-to-peer electronic cash system that aims to become sound global money with fast payouts, micro-fees, privacy, and high transaction capacity (large blocks). In the same way that physical money, such as a dollar bill, is delivered directly to the person to whom it is paid, bitcoin cash payments are sent directly from one person to another.
As a decentralized, permissionless cryptocurrency, bitcoin cash requires no trusted third party or central bank. Unlike traditional fiat money, bitcoin cash does not rely on money intermediaries like banks and payment processors. transactions cannot be censored by governments or other centralized corporations. Likewise, funds cannot be seized or frozen, because financial third parties have no control over the bitcoin cash network.
Reading: Bitcoin cash trading
bitcoin cash (bch) is an alternative to the oldest and most traded cryptocurrency bitcoin (btc), only the bch network is much faster and cheaper. In 2017, the BCH developers modified the BTC code, releasing their own version of the software and a full-fledged competitive product, which split Bitcoin into two blockchains – Bitcoin / Bitcoin Cash, and consecutively two assets – BTC / BCH. bitcoin cash is a clear result of a hard fork in the blockchain. In addition, another hard fork took place in the fall of 2018, which split bitcoin cash into two parts: bitcoin abc and bitcoin sv.
There are several distinguishing features that separate bch from the origin. the principal remains about the size of the block. Blocks on the BCH blockchain can be larger, meaning more transactions can be processed at once, so the extra space helps avoid higher fees. however, since the potential block size is larger, storage & auditing becomes more expensive and users may find it problematic to download a copy of the blockchain.
Technically, bitcoin cash is very similar to the bitcoin algorithm, i.e. both projects have a hard cap of 21 million coins and also use nodes and a proof-of-work (pow) consensus framework. to verify transactions. Therefore, traders can consider bch as a hedging tool, investing in what can save them some risk.
On the plus side, due to the larger block size, bitcoin cash (bch) works faster and has lower transaction fees, making bch a better option for small daily transactions. In addition, Bitcoin Cash supports smart contracts and ecosystem applications such as Cashshuffle, a coin mixing protocol, and CashFusion, a solution to improve the privacy of the Bitcoin Cash network. these technologies have their pros and cons: thanks to cashfusion, it becomes extremely difficult to trace the path to the user’s assets, however, it should be noted that commissions are charged for each mix, so making frequent mixed transactions can have a cost.
bitcoin cash provides a platform for peer-to-peer (p2p) payments between individuals, with an average transfer fee as low as $0.01 and settlement is instant. This means that bitcoin cash is suitable for money transfers, international trade, daily transactions and microtransactions. Additionally, Bitcoin Cash supports economic freedoms by providing an alternative form of money, protected from confiscation, any other form of censorship, and devaluation (due to inflation).
bitcoin cash is a decentralized network where users influence the development of the protocol. One key attribute is fixed in the code: the maximum bch supply is capped at 21 million coins, and is likely to remain so.
thus, the key features of bitcoin cash include the following:
- transactions are recorded on the blockchain, the ledger is updated at regular intervals, allowing users to track ownership history and eliminate fraud threats quickly.
- bitcoin cash is an open network that can be used by anyone for free and without censorship, identities are not attached to transactions.
- nodes that follow a set of rules (also known as as a protocol) are responsible for the longevity of the stored information. the protocol itself can be updated with the help of ecosystem participants, but that requires a high degree of consensus among them.
- every transaction ever recorded on the blockchain is not subject to change.</li
- the proof-of-work (pow) mechanism contributes to network security.
- bitcoin cash is a hard asset with a maximum supply of 21 million $bch .
- bitcoin cash guarantees its users fast, affordable, and most importantly, reliable transactions without being tied to any one location, making it a worthy replacement for existing payment networks.
what is bitcoin cash used for?
Bitcoin Cash combines gold-like scarcity with the spendable nature of cash. With a limited total supply of 21 million coins, bitcoin cash is likely in short supply and, like physical cash, can be easily spent. transactions are fast with transaction fees typically less than a tenth of a cent. anyone can accept bitcoin cash payments with a smartphone or computer.
bitcoin cash has various use cases. In addition to peer-to-peer payments between individuals, Bitcoin Cash can be used to pay participating merchants for goods and services in-store and online. very low fees enable new microtransaction economies, such as tipping content creators and rewarding app users with pennies. bitcoin cash also reduces fees and settlement times for remittances and cross-border trading. other use cases include tokens, simplified smart contracts, and private payments with tools like cashshuffle and cashfusion.
is bitcoin cash different from bitcoin?
In 2017, the bitcoin project and its community split in two due to concerns about bitcoin’s scalability. The result was a hard fork that created bitcoin cash, a new cryptocurrency seen by supporters as the legitimate continuation of the bitcoin project as peer-to-peer electronic cash. all bitcoin holders at the time of the fork (block 478 558) automatically became owners of bitcoin cash. bitcoin, which was invented by the pseudonym satoshi nakamoto is still a separate cryptocurrency.
Unlike bitcoin (btc), bitcoin cash aims to scale in order to meet the demands of a global payment system. At the time of the split, the bitcoin cash block size was increased from 1mb to 8mb. A larger block size means that bitcoin cash can now handle significantly more transactions per second (tps) while keeping fees extremely low, solving the issues of late payments and high fees experienced by some users on the bitcoin btc network.
As of October 2021, bitcoin cash has a block size of 32mb, compared to bitcoin’s block size of 1mb.
how do you mine bitcoin cash?
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Mining is the process of confirming new bitcoin cash transactions and adding new blocks to the bitcoin cash block chain. miners use computing power and electricity to solve complex puzzles. by doing so, they gain the ability to produce new blocks of transactions. if the network accepts one of their blocks, the miner or mining pool earns a block reward in the form of newly issued bitcoin cash.
mining is highly competitive. As the price of bitcoin cash rises in the market, more miners are incentivized to bring more hash rate into the ever-increasing mining competition to produce blocks and get them accepted by the bitcoin cash network. more miners make the network more secure by increasing and spreading the hash rate. this prevents a single miner from having control of the network.
Anyone can mine bitcoin cash. mining requires specialized hardware called mining equipment, which can be purchased or rented. miners also need to run full node software (most miners currently run bchn) to build blocks and connect to the rest of the bitcoin cash network. mining can be done independently, but miners often pool their hash rate and proportionally share the block rewards earned.
how do you buy bitcoin cash?
bitcoin cash is available from a variety of cryptocurrency exchanges, depending on your region. For the latest list of exchanges and trading pairs for this cryptocurrency, please click on our bitcoin cash market pairs tab.
bitcoin cash is available on many major exchanges including: binance, huobi global, coinbase, ftx, gate.io and more.
Be sure to do your own research before choosing an exchange to buy bitcoin cash, using our educational portal: alexandria. Check out our deep dive into bitcoin cash and the difference between bitcoin, bitcoin cash, and bitcoin sv.
To check the live bitcoin cash price in the fiat currency of your choice, you can use coinmarketcap’s conversion feature directly on the bitcoin cash currency page. alternatively, use the page dedicated to the exchange rate converter. Popular bitcoin cash price pairs include: bch/usd, bch/gbp, bch/aud, and bch/eur.
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