Bitcoin Cash (BCH) emerged as a fork from the original Bitcoin source code, inheriting many similarities while introducing key improvements. Both networks utilize a Proof-of-Work (PoW) consensus mechanism, enabling open participation. Here’s how BCH operates:
- Block Time & Supply: Targets a 10-minute block time with a capped supply of 21 million BCH.
- Block Rewards: Halved every 210,000 blocks (~4 years). Current reward: 6.25 BCH per block.
- Enhanced Scalability: BCH increased its block size limit from 1 MB to 32 MB, allowing more transactions per block compared to Bitcoin’s 1 MB limit.
Bitcoin vs. BCH: Block Size and Mining Difficulty
Average Block Size Comparison
While BCH supports up to 32 MB blocks, its average block size rarely exceeds 1 MB post-2017. Real-time data platforms like BitInfoCharts provide comparative metrics for BTC and BCH.
Mining Difficulty Adjustments
- Bitcoin: Adjusts difficulty every 2,016 blocks (~2 weeks).
- Bitcoin Cash: Adjusts after each block, ensuring quicker responsiveness to network hash rate changes.
How Bitcoin Miners Operate: Evolution of Mining Hardware
- CPU Mining (Early Era): Initially, miners used Intel/AMD CPUs, but rising difficulty made this method obsolete.
- ASIC Dominance: Today, Application-Specific Integrated Circuits (ASICs) dominate due to their efficiency in solving SHA-256 hashes.
- Difficulty Surge: Bitcoin’s difficulty adjusts every 2,016 blocks, targeting a ~3% annual increase, making solo mining impractical without specialized hardware.
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FAQs About BCH Mining
1. What’s the key difference between BTC and BCH block sizes?
BCH’s 32 MB block size enables higher throughput, reducing transaction congestion compared to BTC’s 1 MB limit.
2. How often does BCH adjust its mining difficulty?
BCH recalculates difficulty after every block, unlike Bitcoin’s 2,016-block interval.
3. Can I still mine BCH profitably with a CPU?
No. ASICs are essential due to exponentially rising network difficulty.
4. What’s the current BCH block reward?
6.25 BCH per block, halving approximately every four years.
5. Why did BCH increase its block size?
To improve scalability and lower transaction fees by accommodating more data per block.
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Key Takeaways
- BCH prioritizes scalability with larger blocks and adaptive difficulty.
- ASICs are mandatory for profitable mining amid rising competition.
- Real-time difficulty adjustments make BCH mining more dynamic than BTC.
By understanding these fundamentals, miners can navigate the evolving landscape of Bitcoin Cash effectively.
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