Bitcoin Cash (BCH) is one of the cryptocurrencies that is attracting attention in the crypto world. Since its launch, BCH has become one of the main competitors in the digital currency market.
This article will explain in more detail about Bitcoin Cash, its potential and characteristics, and how it differs from Bitcoin.
What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a cryptocurrency that was created as a result of the split (fork) of Bitcoin (BTC) in August 2017. The fork occurred due to differences in views within the Bitcoin community regarding network scale and high transaction fees.
As a result, Bitcoin Cash was created to increase block capacity and allow more transactions per block.
History of Bitcoin Cash (BCH)
The history of Bitcoin Cash began in 2017 as a result of a fork of the Bitcoin network. This split occurred due to differences of opinion within the Bitcoin community regarding network scalability and high transaction fees.
The developers of Bitcoin Cash believe that to make Bitcoin easier to use as an efficient means of payment on a large scale, it is necessary to increase block capacity. However, there are differing views within the community regarding how best to achieve this.
In August 2017, the split occurred and resulted in two different versions of Bitcoin: Bitcoin (BTC) and Bitcoin Cash (BCH). Bitcoin Cash is considered an alternative version of Bitcoin that has a larger block capacity (8 MB, compared to 1 MB for Bitcoin), allowing more transactions to be included in each block at a lower cost.
Since its launch, Bitcoin Cash has undergone several changes and developments. The Bitcoin Cash community is continuously working to improve the BCH protocol and ecosystem, with a focus on improving scalability, transaction speed, and use as an efficient means of payment.
Over the past few years, Bitcoin Cash has experienced various events and changes, including protocol upgrades, a growing ecosystem of services and applications, and support from various parties inside and outside the crypto industry.
Despite its occasional controversies and contests, Bitcoin Cash continues to grow as one of the premier cryptocurrencies in the crypto ecosystem. Strong community support and focus on technology development allow this cryptocurrency to remain relevant in the future roadmap of digital payments and finance.
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Bitcoin Cash (BCH) Characteristics
To understand more about Bitcoin Cash (BCH), you need to know what the characteristics of this cryptocurrency are. The following is a complete explanation.
1. Larger Scale
One of the main characteristics of Bitcoin Cash is its larger block capacity than Bitcoin. This allows BCH to handle more transactions in a single block, reducing network congestion and high transaction fees.
2. Low Transaction Fees
With a larger block capacity, Bitcoin Cash transaction fees tend to be lower than Bitcoin. This makes BCH an attractive option for users who want to make transactions with more affordable fees.
3. Fast Confirmation Time
Bitcoin Cash has faster block confirmation times than Bitcoin. This allows BCH transactions to be confirmed more quickly within the network, improving the user experience in transactions.
4. Active Community
Bitcoin Cash has an active and diverse community, with projects and initiatives supported by BCH developers and users around the world.
Bitcoin Cash (BCH) Potential
The potential of BCH is:
1. Use in Payments
Due to its low transaction fees and fast confirmation times, Bitcoin Cash has the potential to be used in everyday payments. This could increase the adoption of BCH as a more efficient means of payment than traditional fiat currencies.
2. DeFi Application Deployment
Bitcoin Cash also has the potential to be used in decentralized finance (DeFi) applications, such as lending, exchanges, and yield farming. With the ecosystem continuing to grow, BCH could become one important part of the larger DeFi infrastructure.
3. Ecosystem Growth
Bitcoin Cash continues to grow with the emergence of various new services and projects within its ecosystem. This includes the development of wallets, exchanges, payment platforms, and more, all of which contribute to the overall growth and adoption of BCH.
Differences with Bitcoin
Although Bitcoin and Bitcoin Cash share the same roots as the result of a fork of the Bitcoin network, differences in block size, transaction fees, and development goals make them unique characteristics in the crypto ecosystem. As a result, the two are often considered different cryptocurrencies with different uses and purposes.
1. Block Size
Bitcoin has a block size limit of 1 megabyte (MB). Bitcoin Cash increases block size to 8 MB.
2. Difficulty Adjustment Algorithm (DAA)
Bitcoin uses a difficulty adjustment algorithm (DAA) that is slower to adjust mining difficulty. Bitcoin Cash uses a faster DAA, which allows for faster difficulty adjustments within the BCH network.
3. Transaction Fees
Bitcoin transaction fees tend to be high, especially during periods with high levels of activity on the network. Bitcoin Cash has lower transaction fees due to its larger block capacity, which allows more transactions to be included in each block at a lower cost.
4. Development Objectives
Bitcoin is more focused on its role as a store of value assets or "digital gold", with a vision of becoming a global currency that a central authority cannot control. Bitcoin Cash strives to be a more efficient digital currency to use in everyday transactions, with a focus on scalability and low transaction fees.
5. Community and Support
Bitcoin has a very large and strong community, with many developers, miners, and users supporting the project.
Bitcoin Cash also has a large community, although its size may not be as large as Bitcoin. However, BCH has significant support from some of the Bitcoin community who argue that improved scalability is important for the blockchain's long-term growth.
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How Bitcoin Cash (BCH) Works
Bitcoin Cash (BCH) works on similar basic principles to Bitcoin (BTC) but with some key differences in scale and functionality. Here's how Bitcoin Cash works.
1. Transactions
Bitcoin Cash allows users to send and receive payments peer-to-peer (between individuals) without the need to involve third parties such as banks or financial institutions.
Every transaction is recorded on the blockchain, a decentralized ledger held by thousands of computers around the world.
2. Transaction confirmation
Every Bitcoin Cash transaction requires confirmation by a network of computers called miners.
Miners use their computing power to validate transactions and record them in new blocks in the blockchain. Once a transaction is confirmed by a certain number of blocks (usually several blocks), it is considered a valid transaction and cannot be reversed.
3. Block Capacity
One of the main differences between Bitcoin and Bitcoin Cash is block capacity. Bitcoin Cash has a larger block size (8 megabytes) than Bitcoin (1 megabyte), which allows more transactions to be included in each block.
This helps reduce network congestion and high transaction fees that Bitcoin sometimes experiences.
4. Difficulty Adjustment
Bitcoin Cash uses a different difficulty adjustment algorithm (DAA) than Bitcoin to automatically adjust mining difficulty. This ensures that new blocks are mined consistently, even if there are fluctuations in the network's hash power.
5. Wallets and Exchanges
Bitcoin Cash users can store and manage their crypto using digital wallets supported by various companies and platforms. They can also buy, sell, and exchange BCH on various existing crypto exchanges.
6. Mining
The Bitcoin Cash mining process involves miners using their computing power to solve complex mathematical puzzles and validate transactions. In return, they are rewarded with new Bitcoin Cash as well as transaction fees paid by users.
Conclusion
Bitcoin Cash is an interesting alternative cryptocurrency with high potential in the crypto world. With characteristics such as large block capacity, low transaction fees, and fast confirmation times, BCH has appeal as an efficient means of payment and growing DeFi applications.
Despite its origins in Bitcoin, Bitcoin Cash has key differences and continues to grow as one of the main competitors in the digital currency market. With a good understanding of the characteristics and potential of BCH, users and investors can consider the role of Bitcoin Cash in their crypto portfolios more effectively.
How to Buy BCH on Bittime
After knowing what BCH is and how it works, are you interested in buying and investing in this crypto asset? You can do it at Bittime. BCH tokens are available on Bittime in BCH IDR pairings.
Below is a guide on how to buy BCH tokens on Bittime.
- Register an account at Bittime using an active email.
- Complete the identity verification process.
- Once the account is verified, open the Bittime application.
- Select the Market menu or click the graphic icon.
- Select IDR pairing to buy BCH with Rupiah.
- Click 'Buy'.
- Select the order type to use. Limit orders, market orders, and stop orders are available.
- Enter the nominal rupiah to buy BCH.
- Click the 'Buy BCH' button.
- A notification pop-up will appear. Read it carefully and click 'Confirm'.
- Enter the six-digit Transaction PIN.
- The application will display a successful order notification.
For a complete guide on how to buy BCH, click here.
Apart from buying BCH tokens, you can also buy various crypto assets such as BTC, ETH, SOL, ADA, AVAX, DOGE, and many others. Don't forget, keep monitoring ORDI, BTC, ETH, and SOL price chart movements today to find out crypto market trends on Bittime.
Crypto asset buying and selling transactions on Bittime are easy, safe, and instant. Bittime is officially registered and supervised by Bappebti and Kominfo.
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DISCLAIMER: This article is informational and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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