What is Bitcoin Cash?

Bitcoin Cash is a cryptocurrency adapted from the original Bitcoin project and created as a form of peer-to-peer digital cash with enhanced transaction capacity on its network. It aspires to offer fast payments, micro fees, privacy, and high transaction capacity through its peer-to-peer electronic cash system.

A brief history of Bitcoin Cash

Bitcoin Cash started as a hard fork of the Bitcoin blockchain ledger in August 2017, following a spirited debate within the Bitcoin community that centred on concerns regarding the original cryptocurrency’s scalability. Unlike Bitcoin, which kept its 1 MB block size beyond the hard fork, Bitcoin Cash increased its block size to 8 MB at the time of the split and then to 32 MB in 2018.

Bitcoin Cash has itself undergone two more hard forks: one in November 2018, which led to the creation of Bitcoin SV, and in November 2020, which resulted in the launch of Bitcoin Cash ABC. The Bitcoin SV split was caused by a community dispute in which Bitcoin SV’s creators claimed that Bitcoin Cash no longer followed the original vision of the Bitcoin white paper. Meanwhile, the Bitcoin Cash ABC resulted in the creation of a network that includes an 8% miners’ tax distributed to developers.

How Bitcoin Cash works

Upon the time of Bitcoin Cash’s split from Bitcoin, the cryptocurrency’s proponents increased its block size to 8 MB. This additional block size increases Bitcoin Cash’s capacity to handle more transactions per second (TPS) and keep its network fees low.

Bitcoin Cash’s network is secured through a proof of work (PoW) consensus algorithm that relies on mining, just like Bitcoin. Successful miners earn block rewards in the form of newly-issued Bitcoin Cash.

What is Bitcoin Cash used for?

Bitcoin Cash can be used as peer-to-peer digital cash to be paid to other people who use the network. The network’s larger block size in comparison to Bitcoin makes Bitcoin Cash faster to transfer.