Guides to Cryptocurrencies
Founder: More than 1 founder
Date Created: 1 August 2017
Protocol: Proof-of-Work (PoW)
Speed: Around 277 TPS (Reported by Newconomy)
Chinese Name: 比特币现金
4. Bitcoin Cash (BCH)
Bitcoin Cash (or BCH) is a decentralized Peer-to-Peer electronic cryptocurrency cash that uses the Proof of Work (PoW) consensus protocol. it was created as a direct result of a Bitcoin (BTC) fork that occurred on 1st August 2017. Bitcoin blockchain has a 1 megabyte block size limit and transaction fees was $28 on average by the end of year 2017. Transactions sometimes took up to four days to complete in May 2017, hence it is impractical to use BTC for small purchases and everyday use.
Disputes on Bitcoin Scalability Solution
Part of the Bitcoin community called for the development team to increase the block size which will increase transaction speed significantly. Bitcoin core team refused the above proposal and decided instead to persue development of an unproven third party software, called the Lightning Network. Their objective is to use the lightning system to create another payment channel and layer that bypass the Bitcoin blockchain for two parties to transact BTC cryptocurrencies between each other. Lightning enables users to conduct many transactions outside of the Bitcoin blockchain and then record them as a single one.
The Hard Fork that created BCH
Because of the bypass, not every single cryptocurrency transaction will be recorded on the blockchain. Hence, Bitcoin core team hopes the lightning network can be successfuly developed to solve the scalability issue but this caused some members and groups of the community to hard fork and broke away from the Bitcoin blockchain. A new cryptocurrency, Bitcoin Cash (BCH) was created from the hard fork with block size limit of eight megabytes as compared to BTC's one megabyte size.
An anticipated Bitcoin Cash hard fork was implemented on 15 May 2018 and the block size was increased to 32 MB along with the capability to add basic smart contracts on its blockchain. BCH reached cryptocurrency market cap of more than $6.8 billion USD and a total coin circulating supply of around 17.8 million as of 22nd May 2019. Bitaddress.org is an open-source wallet generator that can create brain wallet and paper wallet that traders can use for transacting BCH cryptocurrency. Prominent leaders of Bitcoin Cash are Jihan Wu and Roger Ver.