Blockchain’s ideological battles often lead to hard forks, birthing new projects. Bitcoin Cash (BCH) emerged in August 2017 as a peer-to-peer electronic cash system, created by developers, investors, and miners dissatisfied with Bitcoin’s scaling limitations. Designed to enhance blockchain scalability and reduce fees, BCH was initially dubbed "Bitcoin ABC" (Adjustable Blocksize Cap).
The Birth of Bitcoin Cash
In 2017, Bitcoin faced criticism for slow transaction confirmations and rising fees, straying from its vision of instant, low-cost payments. The community split over increasing the 1MB blocksize limit, a debate that culminated in BCH’s creation. Unlike Bitcoin’s decentralized governance requiring broad consensus, BCH’s proponents prioritized practical scalability.
Key Differences from Bitcoin
- Blocksize Limit: BCH increased from 1MB to 32MB, accommodating more transactions per block.
- Transaction Speed: Faster confirmations and lower fees aim for everyday usability.
- Consensus Mechanism: Both use Proof-of-Work (PoW), but BCH adjusts mining difficulty per block (vs. Bitcoin’s 2016-block interval).
- No SegWit: BCH rejected Segregated Witness (SegWit), favoring larger blocks.
- Schnorr Signatures: Adopted in 2019 for enhanced privacy and scalability vs. Bitcoin’s ECDSA.
👉 Discover how BCH compares to Bitcoin
Bitcoin Cash’s Technical Upgrades
1. Difficulty Adjustment Algorithm (DAA)
BCH dynamically adjusts mining difficulty every block, ensuring stable block times. Earlier attempts like Emergency Difficulty Adjustment (EDA) were abandoned due to instability.
2. Schnorr Signatures
This upgrade streamlined digital signatures, improving transaction efficiency and paving the way for future smart contracts.
3. 32MB Blocks
Despite capacity for larger blocks, BCH’s average blocksize rarely exceeds 1MB (BitInfoCharts data).
Adoption and Challenges
Merchant Acceptance
While BCH is accepted by some businesses (e.g., via Bitcoin.com’s merchant map), adoption remains niche. Its low fees and speed suit microtransactions, but awareness lags behind Bitcoin.
Wallets
Recommended wallets include:
- Bitcoin.com Wallet
- Coinomi
(Note: BTC and BCH use separate blockchains—never mix addresses!)
The Bitcoin SV Fork
In 2018, a contentious hard fork created Bitcoin SV (BSV), pushing blocks to 2GB. Backed by Craig Wright (who falsely claims to be Satoshi Nakamoto), BSV gained minimal traction.
FAQs
1. Is Bitcoin Cash the same as Bitcoin?
No. BCH is a fork with larger blocks and no SegWit, prioritizing transaction speed.
2. Why was BCH created?
To address Bitcoin’s scaling issues, aligning closer to Satoshi’s original vision of a "peer-to-peer electronic cash."
3. How do I store BCH safely?
Use dedicated wallets like Bitcoin.com or Coinomi, and ensure you’re on the BCH network.
4. Can BCH surpass Bitcoin?
Unlikely. Bitcoin dominates in security, liquidity, and mainstream recognition, though BCH excels in low-cost transactions.
Conclusion
Bitcoin Cash remains a relevant Bitcoin fork, offering faster, cheaper payments. Yet, its trade-offs in decentralization and adoption highlight the enduring appeal of Bitcoin’s security model. For everyday transactions, BCH is a viable alternative—but Bitcoin reigns supreme in the crypto hierarchy.