Bitcoin Vs Bitcoin Cash, A Basic Comparison
This article seeks to first give a brief description of Bitcoin and Bitcoin cash and to further examine the basic differences between the two cryptocurrencies. If you are reading this article, I believe you know what blockchain technology and cryptocurrencies entail, if not you can check out some of our works on them. So, without unnecessary waste of time, the questions of the day need be addressed.
What is Bitcoin?
Bitcoin is a worldwide cryptocurrency and digital payment system known to be the first digital currency system that works without a central administrator.
What is Bitcoin cash?
This cryptocurrency came into existence on August 1st, 2017 as a result of what is termed a fork in the Bitcoin Network. It came with the name, Bitcoin Cash. Bitcoin Cash is also called BCC (although on some exchanges the symbol is BCH to avoid conflict with already existing tokens on that platform). It brought with it, the effect that, any user who held Bitcoin at the time of its introduction, now has an equivalent amount of Bitcoin Cash on the Bitcoin Cash Blockchain.
What created the drive to introduce Bitcoin cash?
Bitcoin miners and developers were concerned about the future of cryptocurrency, and its ability to scale effectively, whereby they strive to improve on it by upgrading to Bitcoin cash.
Bitcoin Cash Vs Bitcoin
Bitcoin Cash was created as an answer to the years-long debate among the Bitcoin community regarding the best way to scale Bitcoin to more users. The simplest solution and the one adopted by Bitcoin Cash is to increase the Max Blocksize Limit parameter of the Bitcoin codebase. While Bitcoin’s block size limit remains at 1mb (allowing for ~250,000 transactions per day), Bitcoin Cash has increased the limit to 8MB, allowing for around 2,000,000 transactions to be processed per day.
As far as the users of Bitcoin/Bitcoin Cash are concerned there is very little noticeable difference on the frontend when using either currency. The main difference between these coins is the fact that, given equal cash rate, BCC protocol allows for more transactions per second which translates to faster payments and lower fees.
Also, while Bitcoin SegWit can be discarded from the blockchain, with the introduction of SecureSigs in Bitcoin Cash, all transaction signature must be validated and secured on the blockchain.
Where Bitcoin has a Single centralized development team and client implementation: Bitcoin core. Bitcoin Cash brought in what is called multiple independent development teams and client implementations including bitcoin Unlimited, Bitcoin ABC, Bitcoin XT, and Bitcoin Classic.
Another difference is the Scaling plan, where Bitcoin works with the Off-chain payment channels, Bitcoin cash works with the On-chain transactions and market driven blocksize increases.
The future of Cryptocurrency
What does this mean for the future of cryptocurrency? It’s impossible to tell right now. Bitcoin cash has to run for a little while. We also need to wait for Bitcoin to implement its segregated witness technology and the increase in the size of its block three months from now. I guess what I’m really saying is that only time will tell.