What is Bitcoin Cash (BCH) and How Does it Work?

What is Bitcoin Cash (BCH) and How Does it Work

Content provided by various contributors. DYOR.

Bitcoin Cash (BCH) is a cryptocurrency that was created in 2017 as a fork of the Bitcoin blockchain. It was created in response to concerns about the scalability of the original Bitcoin network.

Bitcoin Cash increased the block size limit from 1 megabyte to 8 megabytes, allowing more transactions to be processed per block. In march 2022, the BCH team increased the block size limit to 32MB. According to the developers, this change was intended to make the network faster and more efficient and reduce the network’s cost.

Like Bitcoin, Bitcoin Cash uses a decentralized network and a public ledger, called the blockchain, to record transactions. It also uses a consensus mechanism called proof-of-work to validate transactions and create new blocks on the blockchain. Miners, who validate transactions and create new blocks, are rewarded with newly created BCH.

Bitcoin Cash (BCH) Unique Features

One of the main unique features of the Bitcoin Cash network is its increased block size limit of 32 megabytes, compared to the 1-megabyte limit on the original Bitcoin network. This allows more transactions to be processed per block, leading to faster transaction confirmation times and lower fees.

Another unique feature of Bitcoin Cash is its support for on-chain scaling. This means the network can handle more transactions by increasing the block size limit rather than relying on off-chain solutions such as second-layer networks.

Additionally, Bitcoin Cash has several features that are not present in the original Bitcoin network. One is the support of the OP_Codes, which were disabled in the Bitcoin network; these opcodes allow for implementing more advanced smart contract functionality.

Finally, Bitcoin Cash has a different approach to its governance and development, with a more decentralized and community-driven approach. This allows for more flexibility and responsiveness to the market and user needs changes.

What is BCH Coin, and Does it Work?

Bitcoin Cash (BCH) is a cryptocurrency that uses a decentralized network and a public ledger, called the blockchain, to record transactions. It is an electronic cash system that aims to make transactions faster, cheaper, and more reliable than traditional financial systems.

BCH coin works the same way as Bitcoin; it uses a consensus mechanism called proof-of-work to validate transactions and create new blocks on the blockchain. Miners, who validate transactions and create new blocks, are rewarded with newly created BCH for their efforts.

Users can send and receive BCH to other users on the network, and transactions are recorded on the public blockchain for anyone to see. BCH can also purchase goods and services from merchants who accept them as payment.

Users can store BCH in a digital wallet and exchange it for other cryptocurrencies or fiat currencies on a cryptocurrency exchange. And just like Bitcoin, BCH can be used as a store of value and as an investment.

In summary

Bitcoin live price
price change

BCH is a decentralized digital currency that allows for fast, low-cost transactions and aims to provide an alternative to traditional financial systems. It works using a proof-of-work consensus mechanism, where miners validate transactions, create new blocks on the blockchain, and are rewarded with newly created BCH.

Read more from author

Editor's picks

What Is Crypto Historical Data and How to Use It in Trading

Crypto historical data refers to past information related to cryptocurrencies such as Bitcoin, Ethereum, and others. This data includes various metrics such as price, trading volume, and market capitalization. Crypto historical data is useful for several purposes in crypto trading. First, it helps traders and investors make informed decisions by comprehensively understanding the crypto market's past performance. Crypto Historical Data Use Cases Here are some of the ways crypto historical data is used in crypto trading: Technical Analysis: Traders use…

How to Effectively Predict Crypto Prices

Predicting crypto prices is a complex task and requires a combination of technical analysis, fundamental analysis, and market sentiment. Here's a guide to help you effectively predict crypto prices: Technical Analysis: This involves studying past market data, including price and volume trends, to identify patterns and predict future price movements. Use charting tools, such as candlestick charts, to visually represent this data. Fundamental Analysis: This involves analyzing the underlying factors that may impact the value of a cryptocurrency, such as…

Guide to Value a Cryptocurrency

Valuing a cryptocurrency can be difficult and subjective, as many factors contribute to its worth. However, here are some steps and considerations for valuing a cryptocurrency: Market capitalization: This is the total value of the cryptocurrency in circulation. It is calculated by multiplying the total number of coins by the current market price. Adoption and usage: The more people use cryptocurrency, the more valuable it is likely to become. This includes individuals and businesses using it for transactions or as…

The Best Crypto Portfolio Trackers (Coin Trackers)

Crypto portfolio trackers are apps or websites that allow users to monitor their cryptocurrency holdings across multiple exchanges and wallets in one place. They connect to users' exchange and wallet accounts through APIs (Application Programming Interfaces) and automatically track the user's cryptocurrency holdings and transactions. The tracker updates in real-time and provides an overview of the user's total portfolio value, asset allocation, and returns. This allows users to track their investment performance and make informed decisions easily. What Should The…

An Overview of Different Cryptocurrency Scams

Cryptocurrency scams are fraudulent schemes that are becoming increasingly common as the popularity of cryptocurrencies continues to grow. They can take many forms and are often designed to appear legitimate investment opportunities or exchanges. Unfortunately, these scams can cause significant financial losses for individuals and harm the reputation of the cryptocurrency industry as a whole. It is crucial for anyone considering investing in cryptocurrencies to be aware of the various types of scams and to take steps to protect themselves.…

What Are Crypto Data Aggregators?

Crypto data aggregators gather data from multiple sources to provide comprehensive and real-time information about the cryptocurrency market. They pull data from various exchanges, trading platforms, and other sources to centralize the information and present it in a user-friendly format. The data includes cryptocurrency prices, trading volume, market capitalization, news, and other relevant information. Crypto data aggregators use algorithms to clean, process, and normalize the data to ensure accuracy and consistency across multiple sources. The information is then presented in…

What Is CoinGecko?

CoinGecko is a cryptocurrency data aggregator and tracking platform. It provides information and insights on the cryptocurrency market, including price, volume, trading activity, developer activity, and community growth. How CoinGecko Works Data Aggregation: CoinGecko collects crypto data from various cryptocurrency exchanges, wallets, and blockchains to create a comprehensive database of cryptocurrency information. Calculation of Metrics: CoinGecko calculates several metrics, such as market capitalization, trading volume, liquidity, and community growth, to provide a comprehensive overview of the cryptocurrency market. Display of…

What Is CoinMarketCap (CMC)?

CoinMarketCap (CMC) is a website that provides information about the cryptocurrency market and tracks the capitalization of various cryptocurrencies. It was founded in 2013 and has become one of the most popular cryptocurrency data providers. CMC aggregates information about the prices, volume, and market capitalization of cryptocurrencies from various exchanges and calculates the average value. Furthermore, the website displays this information in real-time, giving users a comprehensive overview of the cryptocurrency market. CMC tracks over 22,000 cryptocurrencies, including Bitcoin, Ethereum,…

What Are Crypto Pyramid Schemes?

A crypto pyramid scheme is a fraudulent investment scheme where returns are paid to existing investors from funds contributed by new investors. It's called a "pyramid" because it typically has many new entrants at the bottom, with each layer representing fewer investors. Example: John starts a pyramid scheme and invites five friends to invest 1 Bitcoin each. John promises to return 2 Bitcoins to each participant in a month. John needs 10 Bitcoins to fulfill his promise, so he invites…