What is Bitcoin Cash? Bitcoin Cash is a hard fork of Bitcoin, born in early August 2017 in the context of Bitcoin’s tremendous growth in both price and transaction volume. Bitcoin Cash was born with the purpose of providing a quick money transfer solution, solving the limited problems of Bitcoin. So what is special about Bitcoin Cash? Let’s find out with HAK Research in this article.
To better understand what Bitcoin Cash is, people can refer to some of the articles below:
- What is Bitcoin? All About Bitcoin
- What is Proof Of Work (POW)? Advantages, Disadvantages and Core Operating Mechanism of Bitcoin
Overview of Bitcoin Cash
What is Bitcoin Cash?
Bitcoin Cash is a hard fork of Bitcoin, born in early August 2017. In the context of Bitcoin’s tremendous growth in both price and transaction volume at that time. But with such explosive development, Bitcoin’s Blockchain technology at that time was only 1MB in size per Block, which only met the need for a very low TPS (Transactions Per Second). In fact, Bitcoin’s average TPS is only 5.
For that reason, the development community and Bitcoin mining pools, have come up with two proposals:
- The Bitcoin Unlimited team’s solution is to remove Bitcoin’s original Block size limit (1MB). Instead, Miners are allowed to choose to process Blocks of any size as long as it suits their capabilities. Thereby increasing efficiency. However, it has one drawback: it affects the pure decentralization of Bitcoin when control of the network will fall into the hands of large financial organizations and corporations.
- The second is a solution called Segregated Witness with the goal of increasing Bitcoin’s block size and removing signature data when trading BTC. If that were done, Bitcoin’s data size per Block could quadruple. From there, increasing transaction volume. However, this is only a temporary method and cannot completely solve the problem as the number of Transactions will continue to increase in the future.
These two proposals always had many parallel inadequacies, and heated debate took place at that time. When they could not find common ground, they decided to hard fork the Bitcoin Blockchain. From there, a new era of this electronic currency opens.
What is Bitcoin Cash?
That hard fork took place successfully on August 1, 2017 at block 478,558 with the Bitcoin Unlimited team behind it. Holders holding BTC at the time of the fork will receive a corresponding amount of BCH at a 1:1 ratio.
Its definition has been upgraded compared to its predecessor Bitcoin as a peer-to-peer electronic currency. Allows users to pay directly from one party to another quickly and almost free of charge without having to go through any financial institution.
How Bitcoin Cash works
Hashrate parameters
As Bitcoin’s hard fork uses the PoW mechanism, the number of primary concern is the hashrate rate and rewards for miners. A simple explanation of hashrate, it reflects the mining performance of mining hardware and is measured in seconds.
Each solution performed on the network is called a hash. That mining efficiency is measured in h/s. The parameters are converted similarly to the following:
- 1 Kh/s = 1 000 h/s
- 1 Mh/s = 1 000 Kh/s = 1 000 000 h/s
- 1 Gh/s = 1 000 Mh/s = 1 000 000 Kh/s = 1 000 000 000 h/s
- 1 Th/s = 1 000 Gh/s = 1 000 000 Mh/s = 1 000 000 000 Kh/s = 1 000 000 000 000 h/s
Solution roughly translated as calculation solutions or algorithmic solutions. Each GPU or mining device has different calculation parameters. From there, Miners or Users can consider and build suitable, high-performance equipment to participate in the mining network to earn profits. For small individuals, we can preview mining profits with the number of available devices through the calculation website 2CryptoCalc or Whattomine.
BCH also uses the SHA256 algorithm. At the end of 2023, BCH has a few on-chain parameters as follows:
- Network hashrate: 1.76 EH/s
- Network difficulty: 278.34 G
- Block reward: 6.25
- Block time: average 11 minutes = 561.74 Sec
- Daily emission: 961 BCH
Everyone can refer to 2miners.com to update hashrate and difficulty in the fastest and most accurate way.
On June 4, 2024, there will be a BCH having event with Block reward decreasing from 6.25 to 3,125 17 days before the Bitcoin having event.
Special features of Bitcoin Cash
Bitcoin’s great features have been inherited and expanded by Bitcoin Cash such as:
- Quicks: Process transactions in seconds. Get confirmation in minutes. Block size can be 8 times larger than Bitcoin and can be upgraded to a maximum of 32MB.
- Reliability: The network operates smoothly without any congestion.
- Low cost: Send money anywhere globally.
- Simple: Easy to use. No problem arose. Not complicated.
- Stable: The payment system is a proven store of value from Bitcoin.
- Security: The world’s safest Blockchain technology.
Development Roadmap
Like some other hard fork versions, these chains are often born spontaneously and do not really have a clear direction. The project has never announced an official roadmap.
Core Team
Behind Bitcoin Cash is Bitcoin Unlimited, who are veteran blockchain and software architects who are indispensable in developing Bitcoin software and solutions. Core members include:
Founder and Lead Developer: Andrew Stone
- From 1995 to 1998, he was a software engineer at Fujitsu Nexion. In the context of the Internet’s first launch, there were only a few email or online radio functions.
- For the next three years he worked as a technical staff member at Ignitus, and in 2003 he was a software administrator at Camiant Inc.
- Then in 2009, after Bitcoin was first born, he worked as a Software Architect of OpenClovis for 7 years. Become a key Open Source Technical Lead personnel.
- Finally, he and some members founded Bitcoin Unlimited, becoming Lead Developer to lead the talented human resources.
BU President: Andrew Clifford
- Previously in 1987, he was a financial systems analyst for SV Associates focusing on financial computing, transaction system design and processing. There is also application software for the Stratus/VOS platform. SVAssociates.com.
- Then, since 1994, he spent 16 years as a consultant at UBS investment bank in London, UK.
- Finally, in early 2016 he became president of Bitcoin Unlimited. The mission of the organization is: Promote competitive implementation of the Bitcoin protocol to provide more options for miners and increase network robustness.
Chief Scientist: Peter Rizun
- He is a Physicist and businessman living in Vancouver, Canada. He has BASc degree – degree in Engineering Physics from the University of British Columbia and a Ph.D in Medical Physics from the University of Calgary.
- He is a recipient of the Natural Sciences and Engineering Research Council (NSERC) CGS Doctoral Award.
- In addition, he was also recognized as a “Leader of Tomorrow” by the Alberta Science and Technology Foundation (ASTech).
Investor
Bitcoincash has no investors.
Tokenomics
Basic information about BCH token
- Token name: Bitcoin Cash
- Ticker: BCH
- Blockchain: Bitcoin Cash
- Standard: Native token
- Total Supply: 21,000,000 BCH
Token Allocation
All BCH is allocated to users holding BTC on wallets or on exchanges during the snapshot before the hard fork event took place on August 1, 2017 at block 478,558 at a ratio of 1:1. At that time, more than 16.5 million BTC were converted to BCH.
Token Release
BCH has been fully allocated to users who own BTC at the time of snapshot. Currently, the daily inflation rate of Bitcoin Cash is 961 BCH mined in a day. After June 4, 2024, it will be 480.5.
Token Use Cases
Pay transaction gas fees and rewards to miners participating in validating transactions and securing the network.
Exchanges
Currently Bitcoin Cash is available on most major exchanges such as: Binance, Bybit, OKX, HTX, Kucoin, Gate.io, MEXC….
Bitcoin Cash Information Channel
- Website: https://bitcoincash.org/en/
- Github:
- Reddit:
Summary
Bitcoin Cash has the ability to transact faster than Bitcoin, but when looking at decentralization, this is clearly an unfortunate drawback. Although, the difficulty and hash rate show us that this is still a coin that miners still focus on mining. However, those are just whales and large corporations with ASIC miners. This raises concerns for retail investors like us. Ignoring that, as the having event of both BCH and BTC is approaching, their prices have had a certain growth. Hopefully through this article, everyone can better understand what Bitcoin Cash is.
