All of it began with the development of Bitcoin in the year 2009. The first cryptocurrency of its kind, and the notion of decentralization in the currency, which was popular with many. It soon became popular and its value grew to 20K by the year 2017.
It usually takes around 10-minutes to create one block (it has a maximum capacity of 1 MB) which has made the process slow and limited the number of transactions per second to just 10. It has now become a major scaling issue, and it is apparent that it could have happened to any of the coins that are widely accepted.
The Blocksize debate
There are two different perspectives on this issue The big and the small blockers.
The first would like the block size to be increased and thus the issue can be solved.
The latter prefer using off-chain transactions believing that an growth in the block size will be a temporary solution , and it could make it harder to join and aid in centralization.
This is the reason Bitcoin Cash was invented. A variety of opposing parties took part in the creation process.
The primary authors of the project were Roger Ver, Jihan Wu and Deadal Nix.
What makes Bitcoin Cash and Bitcoin different?
Its size is the same as that of a block.
Bitcoin has a limit of 1 MB per block, whereas with Bitcoin Cash, it is adjustable , starting from 8 MB. This allows for greater transactions, however it also requires greater storage capacity, which stops some from taking part. It will require more powerful hardware and a larger storage and this will cost more than it did before.
The algorithm used for mining
The other major difference is due with the algorithms. The one used for BCH is simpler, meaning that more miners will be eager to join. But, it did not work, and resulted in miners moving and leaving and creating block times that were not forecasted. This is the reason why the Difficulty Adjustment algorithm was added. In order to increase certainty mining difficulties were made more adaptable.
Pros and cons
To choose the best alternative, be aware of your goals. With Bitcoin you’re focusing on decentralization, the public status as well as the lack of necessary permissions. But, it’s also expensive and slow.
When it comes to Bitcoin Cash it’s the opposite There aren’t any scaling issues, it’s quick and inexpensive. However, it’s not possible to discuss real decentalization as there are just three pools that hold half BCH’s power of hashing. BCH even has an “CEO” in the form of Rick Falkvinge.
It is evident each has advantages and disadvantages therefore it is up to you which primary concern is.
What does the future hold?
There is a war between these two technologies right now. They are both trying to gain more miners to bring down the other.
There was a huge disagreement following the time that BCH was described as”the “real Bitcoin”.
The government was also involved in the propaganda that surprised a lot of people and made the conflict between the two even more intense.
There is no way to predict what the future will bring for cryptocurrency. The answer to the question about which technology is better is also a mystery.
It is recommended to avoid any person who makes safe predictions regarding the future of crypto. We can conclude that BCH has assisted in solving the issue of scalability and the costs are low and transactions are fast.
But, with Bitcoin 10 times more, there are more transactions being made in the present. It is normal for fees to rise as the transaction size increases.
Can BCH become number 1?
There is no way to know if both will continue to coexist or if only one will prevail at the final.
There are numerous thoughts that pop into your head whether it’s an appropriate idea investing in Bitcoin Cash as well as Bitcoin What will happen with regard to the value of these coins, as well as a lot more.
Always do your own research prior to making a decision and determine your primary goals, then pick the one which is best for you.
It will be fascinating to see what’s going to happen in the near future, as it is not predictable.