Bitcoin vs. It's Hard Fork Bitcoin Cash
Bitcoin is the first virtual currency that was brought into being after the recession followed in 2008 due to the collapse of one of the biggest financial institutions named ‘LEHMAN BROTHER’. The idea of creating the first digital currency came into the mind of an anonymous personality or said to be a group named SATOSHI NAKAMOTO in the year 2009. A white paper regarding this currency was published calling it to be an electronic form of cash. This virtual currency has some unmatched features that make it different in terms of holding its investor’s interest. It is formed based on blockchain technology that eliminates the authority of any third party. Its transactions are transparent and less time-consuming. The blockchain keeps the data of all the transactions protected through the process of encryption. If you want to know more about this, you can just click here.
This currency is called the Bitcoin’s fork. When any new software update is done on an existing blockchain, its investors have the discretion if they want to update its new protocol or not. If they choose not to update, a parallel chain is formed that results in making a new cryptocurrency. Bitcoin cash is one such result of the fork. Many other cryptocurrencies have come into existence through this mechanism. Litecoin is also one such example of a hard fork. Bitcoin cash is also an alternative coin, apart from Bitcoin every other coin is termed an alternative coin. This altcoin was created in the year 2017 with many advanced technologies in it.
HOW BITCOIN CASH CAME INTO EXISTENCE?
Its origin lies in the SegWit improvement that was meant to increase the capacity of Bitcoin and also to enhance the limit of its block size. This controversy resulted in the split of Bitcoin, and a new currency called Bitcoin Cash came into existence. Half of its supporters wanted the block size to be small so that it could be operated through fewer resources while others were happy to enhance its size as it would be easier for mainly big firms to operate it. Its name as Bitcoin Cash was proposed by a mining pool called ViaBTC in 2017.
DIFFERENCES BETWEEN THE TWO:
- The main difference between the two is that the Bitcoin cash’s blockchain allows in it larger blocks that enables it to process more transactions in less time than Bitcoin. As we know for a Bitcoin transaction to process it takes around 10 minutes which means fewer transactions can be facilitated with the provided volume as per their block size.
- In bitcoin cash, if we compare to bitcoin, its transaction fee is much lower because of the block size, as it is bigger and can process more transactions than Bitcoin that is smaller in its block size with more time in processing a single transaction.
- The algorithm for both of these currencies is also different. They both use different algorithms if there is a further split of any of the currencies in near future.
- Bitcoin cash has more potential to transfer the data faster due to the less time taken by it to process the transaction.
- In terms of trading, Bitcoin is more preferred than bitcoin cash.
- If we talk about hash rate also, it is different and miners in bitcoin use it to secure their transaction. The Hash rate of a cryptocurrency also plays an important role and you must give it a thought before investing.
Therefore, the article shared above has given lucid information about these two currencies that are a kind of substitute for one another. I hope as a crypto trader it will give you the necessary information that you are looking for.
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