With the growing popularity and increasing use of Bitcoin, its scalability has become a major issue. As Bitcoin is based on Blockchain technology, it is comparatively slow, and difficult to manipulate in comparison to credit card transactions made in banks. Bitcoin Cash is developed as a solution to this problem.
Let us know more about Bitcoin and Bitcoin Cash and their differences.
Transactions that involve this digital currency are processed, validated, and stored in a digital ledger called a blockchain. The chances of modification, deletion, or addition of blocks in this public ledger are difficult. This makes Bitcoin more secure.
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Bitcoin is an online or virtual currency that was developed in 2009. It makes use of peer-to-peer technology to make immediate payments easily. Mining companies and pools represent around 80 % to 90 % of bitcoin computing power for incorporating a technology called as a segregated witness known as SegWit2x.
Bitcoin transactions are limited by the processing time of transaction. The size of bitcoin blocks is restricted to only one MB. On the other hand, the size of the bitcoin block is 8 MB. That makes Bitcoin Cash transactions comparatively faster than Bitcoin transactions.
Bitcoin Cash has a different case. It began by bitcoin developers and miners that are concerned with the ability to scale cryptocurrency effectively. BCH has its unique blockchain and provisions that distinguish Bitcoin cash from Bitcoin in a significant way.
BCH implements an increased size of the block of 8 MB to speed up the validation process with an adaptable difficulty level. This ensures the survival of Blockchain, and transaction validation speed, irrespective of the number of miners who support it.
Bitcoin Cash has the ability to process financial transactions quickly than the speed of the Bitcoin network. It implies that waiting time is shorter and processing fees of the transaction are lower. The network of Bitcoin Cash is able to deal with several transactions per second as compared to the number of transactions that can happen on the Bitcoin network.
The rapid transaction verification time led to some drawbacks. One of the important drawbacks was linked to the large size of blocks linked to Bitcoin Cash. There was a possibility of a security breach. Bitcoin also remains highly popular, and largest cryptocurrency throughout the world. Bitcoin Cash users find that in terms of real-world usability, and liquidity, Bitcoin was superior to Bitcoin Cash.
Bitcoin miners and developers who are concerned about the future and scalability of the bitcoin cryptocurrency started bitcoin cash. The ongoing debate about transaction processing, blocks and scalability goes beyond and leads to Bitcoin Cash.
The network of Bitcoin Cash has further led to the creation of its derivation called Bitcoin SV. It has made certain modifications for improving the scalability of financial transactions and achieving fast transaction speed.