Bitcoin Cash is a Proof-of-Work cryptocurrency focused on on-chain scaling to function as global electronic cash. Unlike networks that rely on Layer 2 solutions for scalability, Bitcoin Cash scales primarily by increasing the capacity of blocks on the main chain. The network supports CashTokens, a protocol allowing for the issuance of fungible and non-fungible tokens that inherit the security and scalability properties of the underlying BCH network.

The Bitcoin Cash network has executed consecutive annual upgrades to enhance scalability and smart contract capabilities:

Adaptive Blocksize Limit (ABLA - May 2024): The network activated the Adaptive Blocksize Limit Algorithm, which replaced the fixed 32MB block size limit. This algorithm allows the block size cap to automatically expand (or contract) based on the size of previous blocks, effectively removing manual block size debates and allowing the network to scale dynamically with usage.

VM Limits & BigInt Upgrade (May 2025): The "Jessica" upgrade introduced two critical improvements: Targeted Virtual Machine Limits and High-Precision Arithmetic (BigInt). These changes significantly increased the computational efficiency of the BCH Virtual Machine, enabling advanced smart contracts such as decentralized exchanges, automated market makers (AMMs), and stronger cryptographic proofs directly on Layer 1.

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The BCH coin serves as the native currency and economic engine of the network:

Medium of Exchange: BCH is designed for payments, supported by various merchants and payment processors globally.

Smart Contract Gas: Users pay BCH to execute smart contracts and transfer CashTokens.

Token Issuance: Developers must hold/spend a small amount of BCH to mint new CashTokens (similar to the "colored coins" concept).

Consensus: Proof-of-Work (SHA-256)

Block Size: Dynamic (via ABLA)

Supply: Fixed cap of 21 Million BCH

Halving Schedule: Every 210,000 blocks (~4 years)

Smart Contract Standard: CashTokens (Native UTXO assets)