If you’ve ever done Bitcoin trading, you must have been frustrated with the fewer transaction times and extra charges. But a new alternative called Bitcoin Cash has been introduced. An entrepreneur from Brazil, Rafael Oliveira Bitcoin, has founded a business and invested in numerous others. This includes cryptocurrency investments like Bitcoin and so on. Hence, he is in a position to advise people on Bitcoin Cash.
According to Rafael, Bitcoin Cash is another form of digital currency that was developed as a decentralized cryptocurrency. This came into existence when Bitcoin experienced a hard fork situation back in 2017.
Bitcoin Cash in brief
When splitting occurs in a cryptocurrency blockchain, it is called a hard fork. The split blockchain doesn’t have anything to do with each other because they are not compatible. Such a situation occurred in 2017, bringing with it the launch of Bitcoin Cash. Bitcoin Cash is the evolution of Bitcoin, that is, it is better and cheaper than normal Bitcoin. It has also radically changed the protocol of a network. What it does is render an invalid transaction and block valid in the network. The same also applies to a previously valid transaction and block, respectively.
What was it designed for?
First of all, before you can use Bitcoin Cash, you must meet the crypto hard fork requirements. The users or nodes must update their protocol applications to the latest one. Only then can they use the newest Bitcoin. Furthermore, Developers developed Bitcoin Cash to use it to make transactions more cheaply. However, unlike Bitcoin, each Bitcoin transaction is 0.1 dollars less than Bitcoin. Also, the time taken to confirm a transaction is less than the time Bitcoin takes to confirm transactions.
Who maintains the cryptocurrency?
A group of active developers built and maintains cryptocurrency. To them, the new cryptocurrency is a Bitcoin alternative, much needed by the cryptocurrency industry. They see that the existing Bitcoin has turned from a transaction platform to an investment tool used to invest. This wasn’t their original intention of launching Bitcoin. So, to create a more payment-focused system, they created Bitcoin Cash.
It works on the Bitcoin Cash Nodes community that allows people to do their transactions in Bitcoin Cash. The Node works as a blockchain for the latest Bitcoin platform. According to the developers, users can think of it as a digital machine that powers payments by running the network. Additionally, it also operates on a peer-to-peer transaction platform that eliminates third parties from making payments. It also doesn’t allow authorities regulating cryptocurrency to perform transactions on the platform.
What you need to know about the newest Bitcoin development
The road that led to the development of Bitcoin Cash wasn’t a smooth one. It was rife with disagreements among the creators. The disagreement was based on how to tackle the blockchain issues that slowly emerge. One of them is the rising transaction charges miners receive as payment for their services.
The money was given to the miners to encourage others to join the Bitcoin mining community. Unfortunately, the money increased at a manageable rate in 2017, only for it to reduce some weeks after in 2017. But then, many months later in 2017, the money rose sharply to an unbelievable rate of $54.64 per transaction. This rapid increase was more than the previous 5.56 dollars per transaction in the same year.
One advantage of Bitcoin Cash
Bitcoin Cash developers couldn’t agree on the block size inside a blockchain. Some of the developers supported the move, while others rejected it. Those who supported it did so because they wanted to store more transactions on the blockchain. Theoretically, the transaction charges will reduce if each block has more transactions. And those who disagree didn’t think it was the appropriate step. Thus, some of the developers split the blockchain to develop Bitcoin Cash. Since all of them couldn’t agree on the same thing, few developers stuck to the old Bitcoin. While the rest formed a group to launch a new Bitcoin that has a software upgrade.
Disadvantages of the old Bitcoin
According to Rafael Oliveira Bitcoin, the blockchain of the old Bitcoin wasn’t as scalable as it was supposed to be. The rising amount of transactions was too much for the cryptocurrency platform to handle. Not only that, charges and time taken to confirm each transaction highly increased.
What caused the slow confirmation time?
I.T. experts blamed the limited size of Bitcoin blocks for these problems. Along the line, transactions started to pile on each other because the previous one had not been confirmed. Similarly, the blocks had an overload of transactions, which slowed the confirmation time. Hence, users had to wait for hours before their transactions went through. Nevertheless, the birth of the second cryptocurrency is not without its own issues. One of them is how to convince Bitcoin users to trust the new Bitcoin Cash.
Finally, with the introduction, lots of Bitcoin users expected it to stop there. But this didn’t happen. Years later, some of the Bitcoin developers went ahead again to split the already split blockchain. That is, they split Bitcoin Cash to form different versions. Then two years ago, one of the split Cash versions renamed itself into eCash. According to Bitcoin expert Rafael Oliveira, this shows that Bitcoin will continue to evolve more in the future.