Fundamental Difference between Bitcoin and Bitcoin cash:
If you are eager to know what is the difference between Bitcoin and Bitcoin cash, following article will surely help you.
Since its inception, a cloud of doubts surrounds Bitcoin and its ability to effectively transcend. Bitcoin is a cryptocurrency that exists within a network of computers within a Blockchain. This kind of technological “accounting book” was and still is, revolutionary technology.
Among its best features are that the records are not manipulable and that the network is decentralized, that is, it exists in many computers in the world with thousands of users witnessing what happens there.
Each cryptocurrency has a protocol, some operating rules inherent to its chain of blocks. This protocol determines how the validation of transactions is articulated, the incentives for those who validate them, the expected time for each transaction, the size of the block, the tendency to centralization or decentralization, transparency, security, privacy, etc.
You must have heard about Bitcoin (BTC) and Bitcoin Cash (BCH) but here we will learn about what is the difference between Bitcoin and Bitcoin Cash.
Differences between BTC and BCH:
The fundamental difference between Bitcoin and Bitcoin Cash is in the size of the block. While Bitcoin currently has a block size of 2 MB, Bitcoin Cash currently has 32 MB after a hard fork, increased it from 8 MB.
The reason for this difference lies in the scalability of the cryptocurrency. Those who operated with Bitcoin when its price was shooting surely remember high commissions. These work in such a way that the miners first include the transactions with the highest commission.
As the size of the Bitcoin block is “layered” to 2 MB (before 1 MB) they only have space within a limited number of transactions (the average transaction weighs about 255 bytes). A block is mined every 10 minutes, in fact, the protocol is programmed in the way that when transactions are made in less time the difficulty of mining the block increases and if it takes longer it decreases giving the average of 10 minutes per block. Bitcoin price news.
More difference between Bitcoin and Bitcoin cash :
The main difference between Bitcoin and Bitcoin cash is its transaction volume per day. However, one of its main problems is that it is, to some extent, slow. This is compared for example with the banks that handle credits and transactions. Visa, for example, processes up to 150 million transactions per day, which is equivalent to 1,700 transactions per second. In addition, its capacity exceeds its average of transactions: up to 24,000 transactions per second.
Bitcoin, on the other hand, barely processes 7 transactions per second. Processing a transaction takes 10 minutes on average. Now, as Bitcoin users go up, waiting times are lengthened because there are more transactions to process without a change being made in the technology responsible for processing them.
Controversial Commissions :
This is where the controversial commissions arise, if you want your transaction to be validated beforehand, you must pay a higher commission. Depending on the demand for the use of the network, the commissions will rise or fall, so these have a significant correlation with the price.
It is in relation to this problem where Bitcoin Cash arises, by increasing the size of the block allows more transactions per minute then assumes lower commissions. In fact, the increase in the popularity and price of Bitcoin Cash coincide with the increase in Bitcoin network commissions, as can be seen below.
The continuation of the chain of blocks, i.e. the production of successive blocks requires the consensus of the complete nodes. A complete node stores the entire chain of blocks and only archives the new blocks (generated by the miners) that are consistent with the protocol specifications determined from a chain of blocks.
Not all wallets need to be complete nodes, these can simply guarantee that your transfers are in a block by connecting them to multiple nodes that accept the same protocol, without having to store all the chain of blocks. Currently, the Bitcoin Blockchain weighs about 185GB. This way, other nodes confirm your transactions. The popular Electrum portfolio like most portfolios, use this system called SPV (“simplified payment verification”).
The Bitcoin consensus works so that if 51% of the complete nodes give something, by the way, it is true, that is, if 51% of the blocks
The difference between Bitcoin and Bitcoin Cash debate:
After the difference between Bitcoin and Bitcoin cash, let us talk about the BTC Vs. BCH debate.
The popular debate between these two currencies is summarized in the debate between scalability (capacity of the network to support more and more users) immediately (BCH) against decentralization (BTC). As we have said above, the size of the bitcoin blockchain is currently about 185 GB, increasing the size of the block or decreasing the average mining time of the block means increasing the speed of increasing the size of the blockchain. Read more about Blockchain here.
In itself the size of the chain is no problem, you could implement increasingly larger blocks to minimize the time of the transaction and thus achieve scalability. The problem lies in who has the capacity to store a chain of blocks that increases each day, for example, 30 GB. Recall that the “voters” of the Bitcoin network are the complete nodes that store the entire blockchain.
In this sense, the increase in the size of the block is directly an attack on decentralization, which is, the essence of Bitcoin (remember that it emerges as an alternative to fiduciary money and the monopoly of central banks). Greater decentralization implies a more democratic control of the protocol, as can be seen from what has been said, it also implies a network, in principle, which is safer.
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