Bitcoin Cash (BCH), short for Bitcoin Cash, is a cryptocurrency derived from a hard fork of Bitcoin in 2017. It was created to address scalability issues by increasing block size, enabling faster transactions and lower fees. Below, we explore its unique features, use cases, and how it differs from Bitcoin (BTC).
Key Features of Bitcoin Cash
- On-Chain Scaling
BCH follows Satoshi Nakamoto's original vision of on-chain scaling. The default block size was increased to 8MB, allowing more transactions per block and reducing congestion. - New Transaction Signatures
BCH introduced a new SigHash type for improved security, replay attack protection, and hardware wallet compatibility. - Adaptive Difficulty Algorithm (DAA)
The DAA ensures smooth mining transitions between Bitcoin and BCH, preventing extreme hash rate fluctuations. - Decentralized Development
Multiple independent development teams contribute to BCH’s growth, reducing reliance on a single authority.
Practical Use Cases
Fast and Affordable Transactions
- BCH processes transactions quickly due to larger blocks (8MB vs. BTC’s 1MB).
- Low fees make it ideal for everyday payments, especially for merchants.
Merchant-Friendly Adoption
- No chargeback risks (unlike credit cards).
- Easy integration via QR codes or services like Coinbase Commerce.
Regular Network Upgrades
- BCH continuously improves, such as adopting Schnorr signatures and upgrading address formats for better security.
Bitcoin Cash vs. Bitcoin (BTC): Key Differences
| Feature | Bitcoin Cash (BCH) | Bitcoin (BTC) |
|---|---|---|
| Block Size | 8MB (scalable) | 1MB (with SegWit) |
| Transaction Speed | Faster confirmations | Slower, often congested |
| Fees | Lower | Higher during peak times |
| Philosophy | On-chain scaling | Layer-2 solutions (Lightning) |
👉 Discover how BCH compares to other top cryptocurrencies
FAQs About Bitcoin Cash (BCH)
Q: Is Bitcoin Cash the same as Bitcoin?
A: No—BCH split from BTC in 2017 to prioritize scalability and lower fees.
Q: Why does BCH have lower fees than BTC?
A: Larger blocks allow more transactions, reducing competition for block space.
Q: Can BCH be used for smart contracts?
A: Yes, through protocols like Simple Ledger Protocol (SLP) for token creation.
Q: How often does BCH upgrade?
A: Every six months, ensuring constant improvements.
Conclusion
Bitcoin Cash remains a strong contender in the crypto space, offering fast, low-cost transactions and continuous upgrades. Its focus on practical usability makes it a preferred choice for merchants and users alike.