What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) is a cryptocurrency that originated from a hard fork of the Bitcoin blockchain in 2017. This split was primarily due to a disagreement within the Bitcoin community over how to address Bitcoin's scalability issues. The primary difference between Bitcoin Cash and Bitcoin lies in the size of blocks in the blockchain. While Bitcoin maintains a 1 MB block size, Bitcoin Cash increased its block size initially to 8 MB and later to 32 MB. This larger block size allows Bitcoin Cash to process transactions with lower fees, making it more suitable for everyday transactions and electronic cash use.

Bitcoin Cash aims to fulfill the original vision of Bitcoin as a peer-to-peer electronic cash system, offering a decentralized, fast, and reliable means of financial transactions with low fees. It's designed to be used globally by anyone without restrictions, ensuring inclusivity and financial freedom​​​​​​. However, the larger block size of Bitcoin Cash, while enabling lower transaction fees, is more centralized. Larger blocks require more computational power to process, which could potentially lead to a concentration of mining power in the hands of fewer miners or mining pools that can afford such resources. This concentration might increase the risk of centralization within the Bitcoin Cash network, as opposed to the more decentralized nature of networks with smaller block sizes. This aspect of centralization versus decentralization remains a key topic in discussions about the long-term viability and security of blockchain networks​​​​​​.

How does Bitcoin Cash (BCH) work? 

Bitcoin Cash works using a proof-of-work (PoW) consensus mechanism, similar to Bitcoin. Miners use powerful computers to process transactions and add new blocks to the BCH blockchain. One key aspect of BCH is its swifter difficulty adjustments compared to Bitcoin, which can offer miners certain advantages.

As of the latest data, the Bitcoin network surpasses 100,000 nodes, indicating a robust and decentralized network. This figure reflects a significant number of full nodes that contribute to maintaining the network's consensus and security. In contrast, Bitcoin Cash (BCH) has a total of approx 622 nodes. The lesser number of nodes in the Bitcoin Cash network compared to Bitcoin is partly due to its larger block size, which requires more computational resources per node, leading to a concentration of mining power and nodes. This difference in the number of nodes is one of the factors contributing to the ongoing discussion about the degree of decentralization in Bitcoin Cash compared to Bitcoin​​​​.

While sharing many core principles with Bitcoin, such as a fixed supply cap of 21 million coins and a similar issuance schedule, Bitcoin Cash does not support features like Segregated Witness (SegWit) or the Lightning Network, which were implemented in Bitcoin to improve transaction efficiency. Instead, Bitcoin Cash focuses on scaling through larger block sizes, as previously mentioned.

The network is maintained by various independent teams of developers, ensuring that it remains decentralized and resistant to political or social attacks on protocol development. Anyone can join the Bitcoin Cash network, and it's supported by a wide range of wallets and services, furthering its adoption as a digital currency​​​​​​.

What makes Bitcoin Cash (BCH) unique?

Bitcoin Cash (BCH) stands out in the cryptocurrency world due to several key features that distinguish it from Bitcoin (BTC) and other digital currencies:

Increased Block Size for Scalability: One of the primary reasons for the creation of Bitcoin Cash was to address Bitcoin's scalability issues. BCH increased its block size limit first from 1 MB to 8 MB and later to 32 MB. This larger block size allows for more transactions to be included in each block, translating to lower transaction fees. This makes BCH more suitable for everyday transactions and as an electronic cash payment system, but more centralized as a blockchain network.

Focus on Transaction Speed and Low Fees: Bitcoin Cash was designed with the goal of being a practical cryptocurrency for everyday transactions. It achieves similar transaction speeds and lower fees compared to Bitcoin, which are crucial for scalability, functionality, widespread adoption, and success as a digital currency. BCH processes an average of 116 transactions per second, which is lower than traditional payment systems like Visa.

The Controversy and Fork from Bitcoin: BCH originated from a hard fork of the Bitcoin protocol in August 2017, driven by differing opinions within the Bitcoin community about how to manage growth. The fork was controversial, with debates about whether increasing the block size would lead to more energy-intensive and costly operations for nodes, potentially threatening the decentralized nature of the network.

Smart Contract Development: Unlike Bitcoin, Bitcoin Cash has built-in support for smart contract development, adding another layer of functionality to its network.

How to buy Bitcoin Cash (BCH)?

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