August of 2017 became a turning point for the most popular cryptocurrency of the modern world. As the developers implemented some changes into the Bitcoin code, it caused the hard fork, which made the blockchain and the digital currency itself split into two. That is how Bitcoin Cash occurred.
Being an alternative of BTC, this electronic money uses new rules and features, being guided by another development roadmap. The company itself defines the fork as a new peer-to-peer digital cash, which is totally decentralized. It means no central body is there. Go ahead reading and you will recognize the principle discrepancies between the tokens, and make up your mind whether it is worth to buy this very variant.
Difference From Bitcoin
Of course, there are some ground diversities between these two crypto coins. What I ask you to do first, is to be very careful. These are totally separate tokens, and once you send BTC to your BCH account (or quite the opposite) by mistake, that will cause the loss of the funds only.
So, Bitcoin Cash doesn’t provide the ‘replace by fee’ feature, which is still active for BTC. Not speaking about a bigger size of blocks, it also found a way for the quicker solution of the proof-of-work difficulty. That is a pretty good breakaway of 2016. Below, I am going to consider more aspects, are you still there?
When a number of transactions was not so many, Bitcoin and its users didn’t even feel the necessity of more storage. Yet, with the growth of popularity, there occurred some troubles. More and more miners, users and developers advocated for a larger size of blocks. It used to be 1 MB. Yet, with the Bitcoin Cash coming out, you can relish the limit of block of 8 MB.
Bigger blocks mean more transfers, available to make per second. Though, at that rate, a better hardware is required to process the transactions. That is why, Bitcoin lovers still say that this doesn’t work like a 256 GB smartphone against the 64 GB one. This innovation is just a policy choice, which is made for showing the potential of the electronic token.
Segregated witness technology is what misses in Bitcoin Cash. This is a tool helping to make smaller the data of each block. That is done by removing the signature info from the block and placing it in an extended block. Yet, now it is totally needless.
The 8 MB blocks allow people to make more transactions than SegWit does. So, what is the point of keeping it? None. Yeah, it reduces the block weight, but only outwardly. In fact, the data doesn’t get lost or replaced, it is still there. That is why, it is better to refuse any complicated solutions and stay simple and clear.
Replay and Wipeout Protection
This is one of the best and the most beloved features of mine. Bitcoin Cash protects you from any kind of misunderstanding. Actually, the replay attack is something that intentionally repeats or delays the transmissions. Let us say, you want to send 5 BCH to your friend, and send also 5 BTC under the replay attack without being aware of that.
Not so pleasant, huh? In order to solve this problem, there are implemented two solutions. The first one is redefined sighash algorithm. It defines such kinds of operations and makes them invalid. The second one is OP_RETURN output. Both of them work for you and your safe cryptocurrency transactions.
I have been reading a lot about this or that digital money, and I have noticed that there are some common questions, which are unclear to numerous users. That is why, I have prepared my own list of frequently asked items, and try to give the most detailed and relevant answers.
That is done to make it easy for you to understand whether you really need Bitcoin Cash and what you should expect from the value. Hope, this information will be of use and you will get a more or less clear view of the current situation.
Should I Invest in Bitcoin Cash?
The cryptocurrency is comparatively new, yet, it has already gained a pretty good popularity. According to the statistics, Bitcoin Cash is the 4th digital token by the market capitalization. The first three positions belong to Bitcoin, Ripple and Ethereum.
What is more, it is one of the most valued money today. It means more and more things can be bought with BCC. Of course, every solution involves some kind of risks, that is why, you should always base the conclusion on your own research and knowledge, without relying on others’ opinions.
Does BCC Price Depend on Bitcoin Price?
Nope. Bitcoin Cash is an absolutely independent digital token, having nothing in common with Bitcoin in the content of price. Yet, BTC is the world’s leading cryptocurrency and in case its value goes up or down, the other coins, including BCC, will probably also follow the trend.