What is Bitcoin Cash?
Bitcoin Cash is a type of cryptocurrency that was created in August 2017 by forking the original Bitcoin blockchain. This allowed for larger block sizes and improved scalability of transactions.
In November 2018, Bitcoin Cash underwent another fork and split into two separate cryptocurrencies, Bitcoin Cash ABC and Bitcoin Cash SV. The name “Bitcoin Cash” is derived from the fact that it uses the original Bitcoin Cash client.
The main difference between Bitcoin and Bitcoin Cash is their intended use, with Bitcoin being primarily used as an investment vehicle while Bitcoin Cash aims to be a payment service for daily transactions.
Bitcoin Cash sought to improve scalability by increasing the block size, which allows for more transactions per block. This was seen as a way to compete with traditional payment processors such as Visa. However, Bitcoin Cash does not include Segregated Witness, a solution proposed to increase transaction capacity.
Despite their differences, both Bitcoin and Bitcoin Cash share similarities such as using the Proof of Work consensus mechanism and having a maximum supply of 21 million coins. While Bitcoin Cash initially used a similar mining difficulty algorithm to Bitcoin, it has since been modified to make it easier for miners.
