Bitcoin Cash: definition, history and modern stage of evolution
Bitcoin Cash became widely known in the crypto industry in August 2017. It received numerous adherents almost immediately after its occurrence. They advertised their projects, calling it real bitcoins.
Despite the fact that a lot of experts and analysts in the field of cryptocurrency adhered to such a positive reaction to the emergence of a new currency, its opponents were also noted. Be that as it may, Bitcoin Cash is very popular today, while it is far from a single cryptocurrency. Today there are other currencies on the market that you should also know, as CNN writes.
What is Bitcoin Cash
Cryptocurrency Bitcoin Cash is a decentralized payment system that has its own BCH digital currency in circulation. Bitcoin Cash was formed after the separation from bitcoin cryptocurrency.
Bitcoin Cash in modern society is considered one of the most reliable currencies, it can be used anywhere in the world. It continues the idea of bitcoin as a peer-to-peer electronic currency. Users and entrepreneurs have already appreciated its main advantages:
- low fees;
- secure transaction confirmation.
The advantages of Bitcoin Cash include:
- unlimited growth prospects;
- global recognition;
- public innovation;
- distributed development.
In order to store cryptocurrency Bitcoin Cash, users create cryptocurrency wallets.
To prevent double spending, Bitcoin Cash transactions use a new signature hashing algorithm that is not valid on the Bitcoin Legacy network. This prevents the repetition of the transactional Bitcoin Cash in the Bitcoin blockchain and Vice versa.
Bitcoin Cash history
With the increase in the number of users of the Bitcoin payment system, there was an increase in transactions made through it, and its volume, which at that time did not exceed 1 MB in one block, was not enough for its trouble-free implementation. As a way out of the situation, two ways were proposed:
- Increasing the volume of the block;
- Removing part of the information from the blockchain, thereby freeing up space for new operations.
In June 2017, the situation reached a peak of tension, and the blockchain community chose a compromise solution – to introduce a new SegWit2x Protocol, which displays some information from the blockchain, and in the future to increase the blocks to 2 MB. 95% of miners voted for it.
The development team, headed by engineer Amori Sechet, was of the opinion that the previous structure should not be changed. It was decided to increase the blocks to 8 MB. They implemented this idea by separating from the bitcoin blockchain on August 1, 2017. The new branch was called Bitcoin Cash.
The facts relating to Bitcoin Cash
In November 2018, the Federal district court of the Northern district of California filed an amended class action against the largest us cryptocurrency company Coinbase, which contains data on the “false” statements of the latter when listing Bitcoin Cash in December 2017 and other details of the likely insider trading, reports BBC. The plaintiffs claimed that the exchange deliberately created conditions for the Bitcoin Cash pump and allowed a limited range of traders to sell at the best price. At the same time, coinbase’s internal investigation found no evidence of insider trading, and at the end of October 2018, the Federal district court of the Northern District of California dismissed one of the claims against the company due to lack of legal grounds for its consideration.
It was established the fact of vulnerability in the Bitcoin Cash Protocol, it happened in April last year. As a result, there was a possibility of complete obstruction of exchange transactions and the blockchain split into two completely incompatible chains. The situation that has arisen can have an extremely negative impact on the activities and even lead to the collapse of the company. In the last branch which took place in the middle of May of the current year, the anonymous criminal took advantage of a situation and provoked split of a chain on two opposite. It became known about the formation of numerous coins, mistakenly translated into the format “everyone can spend”. This happened during the branch of Bitcoin Cash from Bitcoin. But the management and the BCH team tried to quickly eliminate this oversight and put in place a rule called “cleanstack” the essence of which was to block coins. But the last branch deactivated this rule, which resulted in the capture of coins by an anonymous miner. With the aim of prohibiting and preventing the capture of these coins BTC.com made a rapid modification of the network, because they guessed about the problem of this nature.
The prospects of Bitcoin Cash
A huge number of digital platforms that perform trading operations were recorded shortly after the appearance of Bitcoin Cash. Currently, coins can be found in every leading world exchange. BCH is acceptable for many users, as it allows you to spend less on commissions, provides high transaction speed and security of funds.
Bitcoin Cash functions and grows in relying on the original Creator’s plan. The development team is thinking about providing the functional potential of using the advantages of cryptocurrencies to every person anywhere in the world. The plans also include the development of training projects and the creation of charitable funds for countries with difficult economic situations.
Some investors note that Bitcoin Cash has everything that classic Bitcoin does not have: speed, cheapness, reliability, the security of payments. This is what makes them make their choice in favour of Bitcoin Cash.
Given the high level of capitalization, high-profile names of developers and numerous fans of Bitcoin Cash is unlikely to expect negative dynamics in the coming years. What will happen in the long term is difficult to say, because the platform is inferior to the same Ethereum or EOS in terms of fundamental technology.