History of Bitcoin Cash
On August 1, 2017, the creation of the BCH took place.
A development team, led by Facebook ex-engineer Amory Szechet, announced the creation of a new Bitcoin branch and named it Bitcoin Cash. The previous cryptocurrency block structure was preserved, but the block size was changed and increased from 1 megabyte to 8 megabytes.
When there were not many transactions, everything was successfully processed. Over time, the number of transactions grew along with the popularity of Bitcoin, and this led to the fact that the transaction confirmation had to wait a week (information was not “placed” in the block).
The goal of the hard fork (separation of the blockchain branch) was to reduce the time for calculating complexity from two weeks to one day.
Hard fork bch
Bitcoin cash was not limited to a hard fork with the Bitcoin network.
The cash blockchain was developed by different teams in order to maintain decentralization, this led to the fact that the two development teams promoted incompatible clients ABC and SV and after that, on November 15, 2018, a hard fork took place on BCHABS and BCHSV.
During the hard fork, there was a fierce conflict between the BCH and BSV camps.
Before the update, the head of bitcoin.com Roger Ver stated in a personal twitter account that his mining pool sent more computing power to the ABC bitcoin chain than the entire Bitcoin Cash blockchain had on the morning of the same day. SV developers are significantly behind in this indicator and the founder of BTC.TOPJiang Zhuoer tweeted that the team tried to attack competitors but to no avail. Subsequently, the tweet was deleted.
First, representatives of the Bitfinex exchange reported that they converted Bitcoin Cash users into new assets of BCHABS and BSV, then the Poloniex trading platform did the same, converted the cryptocurrency of users into BCHABC and BCHSV coins. Soon, BCHABC assigned the ticker of the previous currency – BCH.
What is Bitcoin Cash?
The new coin has no significant differences with the “original” for the user.
The new currency works on a protocol similar to Bitcoin, for example, they have the following general characteristics:
SHA-256 hash algorithm
Proof of work
Transaction confirmation through the Proof of Work algorithm
Limit: 21 million coins
There are several differences:
Block size 8MB vs 1MB in the original bitcoin
Mining complexity changes every 6 blocks, in the bitcoin system, complexity is recalculated every 2016 blocks
A very important factor is trust, and the community is formed. Many did not support BCH and remained “true” to the original.
Most Bitcoin infrastructures still consider Bitcoin cache the next altcoin, and not a new Bitcoin. Because of this, the use of BCH is mainly concluded in trading on the exchange.