What is Bitcoin Cash (BCH) – Everything You Need To Know.
I am sure if you are reading this, you might know about the current Bitcoin scaling issue. This issue is not new, crypto but it seems like it is about to reach its climax.
Multiple users, miners, and developers are clinging to multiple solutions to solve the overarching Bitcoin scaling debate. And everyone is deciding which side to join in the chaotic situation of this upcoming Bitcoin fork.
Which side are you joining?
If you don’t understand what I am talking about, check out the scaling debate and the fork issue here.
So here are some technical jargons you may have seen:
UAHF-User activated hard fork UASF-User activated soft fork The New York Agreement SegWit SegWit2x BIP 141 BIP 91 BIP 148.
These don’t help normal users and do little good. In my opinion, this has only led to a lot of the present day’s FUD (fear, uncertainty, and doubt) in every Bitcoiner’s mind who doesn’t understand these jargons.
So I thought of covering the latest on this Bitcoin
drama without getting deep into these technical jargons for now. (Soon, I will publish a separate guide on all these jargons related to the BTC fork…)
For now, you should just know that our original dearest- Bitcoin (BTC), which Satoshi Nakamoto created, is likely going to split on August 1, 2017.
The new split of Bitcoin will be called Bitcoin Cash.
Read: How To Get Your Free Bitcoin Cash on Ledger Nano S Wallet.
Wondering what that is?
What is BCH: bitcoin Bitcoin Cash?
Bitcoin Cash is a new cryptocurrency denoted, as of now, as BCH.
A group of influential miners, developers, investors, and users who are against the agreed consensus (aka BIP-91 or BNB SegWit2x) have decided to fork the original Bitcoin blockchain and create a new version called "Bitcoin Cash".
The official Bitcoin Cash’s website defines itself as:
Bitcoin Cash is peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate.
The official date and time for the fork is:
Fork Date: 2017-08-01 12:20 p.m. UTC.
For Binance your information, it will be a miner activated hard fork (aka MAHF) that will happen without the agreement of a majority of miners or hash power.
Benefits & Features of Bitcoin Cash.
Bitcoin Cash will be a fork of the original Bitcoin blockchain with some changes and additional features here and there.
Mind you, these changes might look small and insignificant, but in reality, these small things have been the reason for a massive debate on Bitcoin scaling for many years.
1. New Name – With a new name to Bitcoin’s offspring, i.e. Bitcoin Cash, it seems to appeal to a stratum of users who believe that Bitcoin should be a cash-like thing that’s easy to exchange with minimal or no fees. Suffixing ‘Cash’ to Bitcoin encourages this usage.
2. Block Size Limit Increase – A certain group of users, miners, and developers have always advocated for a bigger block size in BTC. Now with Bitcoin Cash, they will start off with an immediate increase of the block size limit to 8MB.
3. Replay and Wipeout Protection – If and when BCH splits, they have a well thought out replay and wipeout protection plan for both chains. With this, everyone involved will have minimum disruptions and both the chains can peacefully coexistence from there.
4. New Transaction Type – As part of the replay protection technology, Bitcoin Cash has introduced a new transaction type with additional benefits such as input value signing for improved hardware wallet security, and elimination of the quadratic hashing problem. (Source-https://www.bitcoincash.org/
Websites from where you can buy Bitcoin Cash:
BTC vs. BCH – Differences That You Should Know.
The crypto-sphere is heating up and simultaneously becoming more confusing as it evolves.
I am sad to see how the viruses of confusion and myth are purposely injected into the ecosystem and how the whole system is manipulated as well as hijacked on a regular basis.
Specifically, I am talking about the recent insane price spike of Bitcoin Cash and the doomed price fall of Bitcoin in just a matter of hours.
Some of you who are old players of the crypto-sphere must have benefitted from this sudden rise and BNB fall, but I think it’s not good for newcomers, and it’s not healthy for Bitcoin in the long term.
That’s why in this write-up I wish to convey some of my thoughts on how Bitcoin Cash is not Bitcoin. And I also want to clarify why the newcomers should not fall prey to the Bitcoin Cash PR campaign.
For the latecomers, I want to first explain what Bitcoin Cash is and show you some facts. Then, I’ll explain Bitcoin and leave it to you to decide for yourself.
Some of the benefits & features of Bitcoin Cash…
This on-chain increase in the ability of Bitcoin Cash provides several benefits to its users against ‘Bitcoin’, but these benefits come at a huge price that its users have to pay. (I will explain this ‘huge price’ further in the article.)
On-chain scalability New transaction signatures Emergency Difficulty Adjustment (EDA) Decentralized development.
Price One Needs To Pay To Enjoy BCH Benefits.
Ignoring the fact that many of you would have made a good amount of money in the recent Bitcoin Cash rally, one needs to pay a huge cost for using Bitcoin Cash.
This cost cannot be measured in dollars, euros, or yens, but instead, it is a cost that you pay by compromising the original dream of Satoshi Nakamoto – to make an uncensorable alternative monetary system which isn’t controlled by an individual or a group of people.
Some of you might say that I am incorrect because Bitcoin Cash’s official site claims that they are carrying forward Satoshi’s Vision by stating:
Some of the developers did not understand and agree with the original vision of peer-to-peer electronic cash that Satoshi Nakamoto had created. And Bitcoin Cash is the continuation of the Bitcoin project as peer-to-peer digital cash. –https://www.bitcoincash.org/
But actually speaking, they are not even close to Satoshi’s original vision of decentralized and uncensored money.
Bitcoin Cash is extremely censored.
Wait! Some of you might say that I am biased and I am just a Bitcoin fan, but I have facts!
Want To Know The Facts?
1. A decentralized cryptocurrency having a CEO? Really.
Do you really need a CEO for a currency? If you do, then what’s the difference between a business and a crypto?
2. Centralized mining.
Bitcoin Cash mining is highly centralized. If you look at the above image, you will certainly be able to put in perspective what I am talking about.
This is the hash power distribution for Bitcoin Cash mining for the last 144 blocks mined.
If we combine the hash power of Antpool, ViaBTC, and BTC.com, which makes more than 50% hash power, this is detrimental for any coin. To make a 51% attack on Bitcoin Cash would be a decision of three mining parties coming together.
The argument is that Bitcoin also had such hashrate distribution in its early days; but don’t forget that Bitcoin was trading in pennies at that time. Anyone attacking BTC at that time had no incentive in doing so because it was almost worthless.
But now that Bitcoin Cash is trading well above $1000, it’s very susceptible to 51% attacks, which is not good. Read more about 51% attacks here.
3. Total full nodes are fewer than Bitcoin.
Bitcoin has more than 10,000 active full nodes running, which is one of the most important factors of a truly decentralized currency. This means that anyone attacking Bitcoin would need to have the ability to hijack more than 50% of the 10,000 nodes that are running across the globe.
On the other hand, Bitcoin Cash only has around 1200 nodes as per Coin.Dance’s node summary.
4. Hard forks without polls.