BCH RATE

About BCH

What Is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) is a decentralized cryptocurrency designed for peer-to-peer transactions, prioritizing fast payments, low fees, and privacy, with a larger block size to support scalability. Unlike Bitcoin (BTC), it functions without the need for intermediaries, aiming to become a global electronic cash system.

Emerging in 2017 as a result of a hard fork from Bitcoin, Bitcoin Cash originated from community disagreements over scaling and the SegWit upgrade. BCH developers introduced a modified version of Bitcoin's code, creating a separate blockchain. The dispute centered around block size: while small block advocates warned of potential centralization and risks to hosting full nodes, large block proponents pushed for increased block size to address rising transaction fees and avoid stalling growth. Another hard fork in 2018 further split Bitcoin Cash into Bitcoin ABC and Bitcoin SV, reflecting ongoing debates within the community.

How Does Bitcoin Cash (BCH) Work?

Bitcoin Cash (BCH), with its larger block size, allows for faster transactions and minimal fees, often less than a tenth of a cent. It also supports smart contracts and a variety of ecosystem applications, expanding its functionality.

As a provably scarce cryptocurrency with a fixed supply of 21 million coins, Bitcoin Cash is similar to physical cash in its ease of spending. Beyond peer-to-peer payments, BCH enables payments to merchants both online and in-store. Its low fees open the door for micro-transaction economies, such as tipping content creators or rewarding app users with small amounts. Additionally, Bitcoin Cash is a practical solution for remittances and cross-border trade, cutting costs and reducing settlement times. Other notable applications include tokens, simplified smart contracts, and private transactions using tools like CashShuffle and CashFusion.

FAQ

How Does Bitcoin Cash Differ From Bitcoin?

Some supporters viewed Bitcoin Cash as the rightful continuation of Satoshi Nakamoto’s vision, emphasizing its purpose as a peer-to-peer electronic cash system. When the blockchain split at block 478,558, all Bitcoin holders were granted an equal amount of Bitcoin Cash.

Bitcoin Cash retains many technical similarities to Bitcoin, including a 21 million coin supply limit, the Proof-of-Work (PoW) consensus mechanism, and the use of nodes for transaction validation.

However, Bitcoin Cash distinguishes itself through its scalability focus. During the fork, its block size was expanded from 1MB to 8MB, allowing it to process far more transactions per second (TPS) compared to Bitcoin. This adjustment ensures minimal transaction fees and resolves the issues of delays and high costs that Bitcoin (BTC) users often face.

How Do You Mine Bitcoin Cash (BCH)?

Bitcoin Cash mining involves confirming transactions and adding new blocks to the blockchain. This process requires miners to solve complex puzzles using computing power and electricity. Once a miner successfully creates a new block and it is accepted by the network, they receive a block reward in the form of newly generated Bitcoin Cash.

The competition in mining is intense. As Bitcoin Cash’s market price increases, more miners are drawn to participate, contributing additional hash rates to the network. This rising competition not only boosts the network's security but also helps distribute the hash rate more evenly, preventing any single miner from gaining control over the blockchain. Ultimately, a higher number of miners strengthens the overall decentralization and reliability of the Bitcoin Cash network.

What is Bitcoin Cash used for?

Bitcoin Cash functions as a peer-to-peer digital cash system, allowing users to send payments directly to others within the network. Thanks to its larger block size compared to Bitcoin, transactions on the Bitcoin Cash network are processed more quickly, making it an efficient option for transferring funds.

This enhanced transaction speed not only improves user experience but also supports a broader range of use cases, such as everyday purchases and cross-border payments. The network's design ensures that Bitcoin Cash remains a scalable and practical solution for fast and cost-effective digital payments.

How Is Bitcoin Cash (BCH) Secured?

Bitcoin Cash relies on a Proof-of-Work (PoW) consensus mechanism for its security, similar to Bitcoin. In this system, miners play a crucial role by solving complex computational puzzles. These puzzles serve to validate transactions and ensure their integrity before being added to the blockchain. Additionally, this process facilitates the creation of new blocks, maintaining the decentralized and tamper-resistant nature of the Bitcoin Cash network.