When a blockchain is split into two different chains, it is called as a fork in the Cryptocurrency blockchain. That way on Aug 1st, 2017, the fork of the classic Bitcoin was created and called it the Bitcoin Cash. It helps to increase the size of a block hence letting the processing of many numbers of transactions.
Bitcoin Cash In Detail
Regarding scalability, Bitcoin was always sitting in the hot seat from the day it was launched. Notably, during 2010, the size of the blocks was set to 1000 bytes. Also referred as 1 megabyte, created a worry that it will slow down the transaction processing time. This, in turn, will limit the potential of the currency. This is a concerning factor at the time of its peaking business.
Bitcoin code had imposed a limit to stay free from the spam attacks when the bitcoin market was low. Later the size increased, and by 2015, this created a situation in which the transaction time got delayed due to the addition of blocks, and it reached the capacity.
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Several proposals were made in due course of time, and the prime focus was on the block size. There was no central management in the Bitcoin code, and hence consent of both the miners and developers were required for making any change. This further led to delay in the processing of the proposals. As a result, groups started creating a blockchain ledger with a current standard and named it as FORK.
To name a few forks like Bitcoin Unlimited and Bitcoin XT was not much accepted by the audience and hence the Bitcoin Cash came into light during August this year. Thus, it is a fork of Bitcoin Classic.
Difference Between Bitcoin Cash and Bitcoin Classic
The block size increased to 8MB from 1MB. It removed the Segregated Witness (SegWit) which is a proposed code adjustment that was developed to free up block space. Block space can be freed up by removing some part of the transaction. Bitcoin Cash aimed at increasing the processing speed and hence make more purchase than before.
Bitcoin cash is expected to compete with Visa and PayPal considered to be carrying out transactions in volume. In line with increasing the block size and improving the speed.
The computer power plays a significant role in processing larger blocks. This will lead to pricing out of the smaller miners. It is indeed a cause for concern. Also, it is a worry among the fork opponents that there will be a threat to the great consensus-driven approach in the Bitcoin classic world.
Future With Bitcoin Cash
Bitcoin cash will develop survival long enough by enticing companies and individuals to make use of the new digital currency. It is managing to build substantial interest to reach a critical mass.
After reaching that point, Bitcoin Cash will become successful and will prompt others to create an alternative to their respective coins.
Thus, Bitcoin Cash will arrest the issue of scalability by increasing the size of the blocks when compared to classic bitcoins.