Bitcoin Cash - The introductory
How Bitcoin Cash exists?
Bitcoin Cash is originated from Bitcoin. It's all come from the issue of the scalability of bitcoin. On August 1st 2017, Bitcoin is being split to Bitcoin and Bitcoin Cash. In other words, Bitcoin Cash is essentially a clone of the existing Bitcoin blockchain with stronger feature which is the additional block size capacity. Those who owned Bitcoin before the split now own an equal amount of Bitcoin Cash. It also means that Bitcoin Cash and Bitcoin each now have 16.5 million units in circulation.
Why Bitcoin Cash and Bitcoin Splits?
This is all goes to the history of how Bitcoin was first introduced back in the 2009, block sizes were unlimited. To buy and sell Bitcoin, wallets required users to keep a record of the entire blockchain. Its was as if one had to download the entire history of Google searches to find something on the internet. This led to an abundance of Denial of Service (DOS) attacks as hackers stuffed block with meaningless transactions making it difficult for users with slower computers to transact. To alleviate this problem, the Bitcoin community moved to limit the block size to one megabyte(MB)
Currently, the 1MB block size limits transaction which max can make 7 transactions per second, which can compete to Visa's or Paypal's 2,000 transactions per seconds. There are people who wants to increase the block size which could end up increase the transactions per second and there happen to be some of them don't really agree to do it. This come to end of splitting the Bitcoin into Bitcoin and Bitcoin Cash.
Bitcoin Cash increase the existing block sizes from 1MB to 8MB, thereby increasing the amount of transactions processed per day and improving transaction speed. Critics argue that larger block sizes will lead to the centralization of mining operations, as larger blocks require proffesional hardware. This would counter the idea of decentralization networks of miners, and limit oversight of the Bitcoin network to a few large miners and nodes.
Bitcoin Cash is originated from Bitcoin. It's all come from the issue of the scalability of bitcoin. On August 1st 2017, Bitcoin is being split to Bitcoin and Bitcoin Cash. In other words, Bitcoin Cash is essentially a clone of the existing Bitcoin blockchain with stronger feature which is the additional block size capacity. Those who owned Bitcoin before the split now own an equal amount of Bitcoin Cash. It also means that Bitcoin Cash and Bitcoin each now have 16.5 million units in circulation.
Why Bitcoin Cash and Bitcoin Splits?
This is all goes to the history of how Bitcoin was first introduced back in the 2009, block sizes were unlimited. To buy and sell Bitcoin, wallets required users to keep a record of the entire blockchain. Its was as if one had to download the entire history of Google searches to find something on the internet. This led to an abundance of Denial of Service (DOS) attacks as hackers stuffed block with meaningless transactions making it difficult for users with slower computers to transact. To alleviate this problem, the Bitcoin community moved to limit the block size to one megabyte(MB)
Currently, the 1MB block size limits transaction which max can make 7 transactions per second, which can compete to Visa's or Paypal's 2,000 transactions per seconds. There are people who wants to increase the block size which could end up increase the transactions per second and there happen to be some of them don't really agree to do it. This come to end of splitting the Bitcoin into Bitcoin and Bitcoin Cash.
Bitcoin Cash increase the existing block sizes from 1MB to 8MB, thereby increasing the amount of transactions processed per day and improving transaction speed. Critics argue that larger block sizes will lead to the centralization of mining operations, as larger blocks require proffesional hardware. This would counter the idea of decentralization networks of miners, and limit oversight of the Bitcoin network to a few large miners and nodes.
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