Bitcoin Cash (BCH) is a variant of Bitcoin, aiming to address several important issues. Compared to Bitcoin, BCH brings notable differences, from block size to consensus mechanism.
To learn more about Bitcoin Cash (BCH) and related information, please follow the content below from AZcoin!
What is Bitcoin Cash (BCH)?
Bitcoin Cash is a type of cryptocurrency created from a fork of Bitcoin on August 1, 2017. BCH was developed with the aim of addressing some of the issues facing the Bitcoin community, particularly scalability and transaction fees.
History and reason for the birth of Bitcoin Cash
Bitcoin Cash emerged from disagreements within the Bitcoin community regarding how to address scalability issues. A group of users and developers believed that increasing the block size was the best way to enhance the network’s transaction processing capacity.
Meanwhile, others supported solutions like SegWit and the Lightning Network, methods to tackle scalability issues by altering how transaction data is stored and processed.
How Bitcoin Cash (BCH) Works
BCH operates on a separate blockchain, independent of the Bitcoin blockchain. Both utilize blockchain technology, a decentralized ledger secured by cryptography and maintained by a network of nodes (computers). However, BCH has several differences in operation compared to BTC.
- Larger block size: BCH has larger blocks, enabling faster processing of more transactions with lower fees. Instead of waiting for 10 minutes like BTC, BCH only requires seconds to confirm transactions.
- Flexible difficulty adjustment: The BCH network has a mechanism for adjusting mining difficulty according to demand, maintaining stable transaction confirmation times.
- Different block creation algorithm: BCH employs a different algorithm for block creation, enhancing security and mitigating attacks from Bitcoin miners.
Outstanding advantages of Bitcoin Cash
Here are the prominent advantages of Bitcoin Cash:
- P2P network: Users can send BCH coins directly to any location worldwide without the need for approval from intermediaries.
- Secure encryption: The Bitcoin Cash network employs encryption tools to prevent attacks, fraud, and asset theft.
- Transparent transactions: The entire transaction history of Bitcoin Cash is publicly available on a blockchain, allowing all users to view and verify.
- Low fees and fast speed: Similar to Avalanche, BCH transactions typically have lower fees and an average confirmation time of about 10 minutes, making Bitcoin Cash easily usable as cash.
Difference between BTC and BCH
While both BTC and BCH are based on blockchain technology and aim to serve as decentralized cryptocurrencies, they have significant differences:
- Block size: BTC has a block size of 1MB, whereas BCH has a larger block size of 8MB. This allows BCH to process more transactions efficiently and helps reduce transaction fees.
- Encryption algorithm: BTC uses the SHA-256 encryption algorithm, while BCH employs an enhanced version of the SHA-256 algorithm. This enhances BCH’s security and makes it more resistant to attacks from Bitcoin miners.
- Transaction processing speed: With a larger block size and flexible difficulty adjustment mechanism, BCH has faster transaction confirmation times compared to BTC. Instead of waiting for 10 minutes like BTC, BCH only requires seconds to confirm a transaction.
- Market value: Currently, the market value of BTC is significantly higher than that of BCH. However, recently, the value of BCH has seen substantial growth and continues to garner attention from many investors.
Detailed information about Bitcoin Cash Token
Important indicators of BCH Token
- Ticker: BCH
- Blockchain: Bitcoin Cash
- Type Token: Token, Mineable
- Consensus: Proof of Work (PoW)
- Algorithm: SHA-256
- Block Time: 10 phút
- Transaction Time: 61 TPS
- Block Reward: 12.5 BCH per block
- Total Supply: 21,000,000 BCH
- Circulating Supply: 18,106,389 BCH
Purpose of using BCH Token
- Payments: BCH offers higher suitability for everyday transactions due to its larger block size and lower transaction fees.
- Exchange trading: BCH can be traded on cryptocurrency exchanges to profit from buying and selling in the short term.
- Investment: Like BTC, BCH also has the potential to become an investment asset, with its value showing significant increases recently.
BCH Token Storage Wallet
Similar to BNB, users can store BCH in various types of wallets, such as software wallets like Electron Cash and Bitcoin.com Wallet, or hardware wallets like Ledger Nano S and Trezor, as well as paper wallets and web wallets.
BCH Token Exchange
Currently, BCH can be traded on most of the world’s top best crypto exchanges such as Binance, Bitget, Crypto.com, OKX, and Kraken.
Should you invest in Bitcoin Cash?
Investing in Bitcoin Cash (BCH) is a decision that requires careful consideration and depends on your investment goals. BCH can be seen as a potential means of payment with low transaction costs and fast speeds.
However, the cryptocurrency market is highly volatile, so investing also comes with risks. Before making a decision, thoroughly research and consider whether BCH aligns with your investment goals and plans.
The end
In summary, AZcoin has introduced you to Bitcoin Cash (BCH) and all related information. Hopefully, you will have an objective perspective before deciding to invest in this project. Wish you good luck on your investment journey!
I am Louis Dang, living in Ottawa, Canada. I am currently working as a trader for AZCoin company, with 7 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
