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What is Bitcoin Cash? A Quick Overview
Bitcoin Cash is a peer-to-peer electronic cash system, stemming off of the main blockchain Bitcoin. By using an increased default of 8mb blocks, this makes it quicker and easier to transfer between people than Bitcoin.
HISTORY OF BITCOIN CASH CRYPTOCURRENCY
On July 20th, 2017 a proposal called BIP 91 (Bitcoin Improvement Proposal) was voted by miners with a 97% majority, passing an activation of segregated witness.
Segregated Witness or Segwit for short is the process by which the block size limit on a blockchain is increased by removing signature data from Bitcoin transactions.
And by removing some of this data, this allows for more space and capacity to add more transactions to the chain.
Segregate means to separate, and Witnesses are the transaction signatures. Hence, Segregated Witness means to separate transaction signatures.
After block 478558 was mined, these miners automatically had their computers start rejecting BTC, switched to the mining of BCH (or BCC on certain exchanges) and begin the creation of a more efficient form of Bitcoin.
This has created a slight rift in the community of traditional BTC advocates vs. new Bitcoin Cash (BCH) advocates each wants to be the real bitcoin.
As of 11/11/2017 Bitcoin Cash has moved up to a high of .224 Bitcoin after seeing stabilization post hard fork on August 1st, 2017 of .0084.
THE PURPOSE OF BITCOIN CASH
Bitcoin (BTC) was the original and still is the staple cryptocurrency in the space, but the miners, developers, and teams that help upgrade Bitcoin had a predicament.
Bitcoin was becoming higher in fees, longer in transfers, and harder to mine.
This lead to the creation and formation of BIP, which as seen above, went active on July 20th and had it's hard to fork on August 1st.
Bitcoin Cash was created as a way of providing all of the benefits of Bitcoin, still in a decentralized way, with cheap transactions that clear quickly and hold the security of a cryptocurrency. Along with easier scalability.
Essentially, and some will disagree, it is an upgrade of what Bitcoin’s original purpose was, but with the ability to house more and more people.
WHY BITCOIN CASH IS DIFFERENT THAN BITCOIN - IT’S ALL IN THE FEATURES
Bitcoin Cash Feature #1: On-Chain Scalability
One of the most important features of anything technological is the ability to scale and to scale on the platform; you are using.
If Facebook had to continually create a new Facebook site every single time they hit a new mass of people, the business would have died early.
That’s why it pays to have the ability to scale and to scale on the platform you are currently using rather than an entirely new one.
The first step to this on-chain scalability was the default of 8mb blocks which helps to ensure quicker, cheaper transactions to anyone.
Now, you can buy that cup of coffee with Bitcoin Cash.
Bitcoin Cash Feature #2: Difficult Emergency Adjustment (EDA)
When it comes to mining, switching from one blockchain to another can become distrustful.
That’s why with Bitcoin Cash they created the EDA to allow responsive proof-of-work difficult adjustments that allow miners to migrate from BTC to BCH with protection against hash rate fluctuations.
Using this feature can help onboard miners quicker and safer. And at a cheaper cost of mining, it may be a more cost-effective method of extraction.
Although, on November 15th,2017 there will be an update to help fix the difference in hash rate and mining profitability that continually has miners switching between BTC and BCH/BCC
Bitcoin Cash Feature #3: New Transaction Signature
While this may be foreign to a lot of people, when you send Bitcoin from one address to another, you get a TX signature.
This is what you can use the track and make sure that the BTC was received and sent precisely how the ledger you executed was planned.
On Bitcoin Cash there is a new SigHash that provides replay protection (so that transactions aren’t valid on both sides of the fork but only the one currently being used), improved hardware wallet security, and helping to fix the quadratic hashing problem (waiting for another block to be created when too many signatures hit the first block, which wastes a lot of time.)
Mostly, by updating this code, we have an easier ability to migrate to Bitcoin Cash, ensuring that transactions on Bitcoin Cash don't appear on Bitcoin, and the ability to be quicker through higher block sizes.
On top of that, the new transaction signatures use the P2SH (up to 35 characters) address type, adding to security.
Bitcoin Cash Feature #4: Decentralized Development
When Satoshi Nakamoto created Bitcoin, he did so to create a decentralized currency that couldn’t be controlled or manipulated.
On both sides of the equation, Bitcoin and Bitcoin Cash, we see people claiming manipulation.
Granted Bitcoin Cash is trying to defeat this stigma by having multiple independent teams of developers providing software implementations, while Bitcoin is mainly controlled by Bitcoin core.
By creating multiple separate teams, it helps create resiliency and inability to be manipulated as each team can provide updates as no single group or project can control it.
WHAT WE AT GCA THINK ABOUT BITCOIN CASH CRYPTOCURRENCY
At GCA we are always looking into the future, and since the main portion of the mission of starting GCA was to help everyday people join the cryptocurrency community and bring it mainstream, constant innovation and scaling are required.
It is for that reason that we like Bitcoin Cash and the innovations that it is bringing to Bitcoin.
Again, it’s very similar to Bitcoin but with some noticeable differences such as:
Similar to Gold, Bitcoin is becoming clunky, slow, and more costly to send places, which isn’t good if we want to compete with Visa and other payment processors to become our own.
We need something fast, upgradable, safe, and easy to use.
Bitcoin Cash seems to be the easy solution to do this, which is without saying Bitcoin needs to go away, it doesn’t and should stay since it is a ledger both of the past and of the building blocks of Bitcoin up to this point.
When it comes to scaling and mass adoption, the clear choice is to work with both, bridge the community, and help onboard people/businesses to Bitcoin Cash.
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