Since the dawn of its advent, Bitcoin has been slow in terms of scaling effectively. The transactions comprising Bitcoin are processed, verified, and kept on a digital ledger known as Blockchain.
The Blockchain is a distributed database that shares and transmits information through the computer network. They tend to conserve a safe and steadfast record of the digital transaction. The advantage of using blockchain tech is that it maintains the consistency of securing the data without the need to depend on a trusted third party.
The main issue with the Bitcoin Blockchain is its feeble transaction rate. The famous credit card company Visa can make an average of 24,000 transactions per second, while BTC can only make seven transactions per second. Due to the prevalence of BTC, its transaction time has been increasing simultaneously.
The creation of Bitcoin Cash was a solution to this issue. Let’s look further into BCH and whether it is effective against bitcoin.
Bitcoin (BTC) VS Bitcoin Cash (BCH)
As proposed by the bitcoin inventor(s) Satoshi Nakamoto, the size of a bitcoin block is to be fixed to 1MB. This is the main reason for the slow processing of transactions. It allowed approximately seven transactions per second.
Bitcoin Cash expanded the storage of the block to 8MB and later to a whopping 32MB, which accelerated the transactions to 100 tps.
The advent of BCH resulted from a hard fork experienced by the BTC. Some miners wanted to expand the storage of the bitcoin block, but the opposing miners didn’t approve of the idea. So, the miners who favored the expandable storage created Bitcoin Cash.
Bitcoin cash works on the same principles and terms as Bitcoin. The main difference is the storage and the cost of the transaction. You will have to pay $59 for a BTC transaction, while the BCH transaction costs less than a penny.
Benefits of Bitcoin Cash
- Ease in Transactions: Due to its increased storage, Bitcoin Cash can perform more transactions per second in significantly less money.
- Versatile than BTC: As it has more popular options, it tends to scale more than bitcoin, allowing more people to transact at any given time.
- Easy to Decode: The simplified design of Bitcoin cash allows swift decoding without the need for expensive or fancy equipment.
- No Fear of Stolen Identity: You can transfer bitcoin without providing personal information, making it much safer than traditional payment methods.
- The rise in Popularity: Though it is still new and less known among people, BCH has been gaining preference over BTC and will continue to do so in the future.
Downsides of Bitcoin Cash
- Decreased Security: With the increment of storage, its security has been depleted. It is much easier to hack, or double-spend BCH as the algorithm related to it is much easier to decode. The the-bitsoft360app.com gives more protection to its database and is impenetrable.
- Computing Complexity: BCH has an automated system of processing the data. It depends on the speed of extraction of the new data. The miners get inadequate data for a certain period, and then the complexity drops.
- Branding: Bitcoin Cash is often indistinguishable from Bitcoin, making it difficult to stand out. Though the inventor has hopes for BCH to make its name, that possibility still doesn’t seem to happen soon.
Ending Statement
Without the transaction issues, BTC is a well-made system on its own. But the fast-paced environment might make users move towards adopting BCH. However, we are unsure exactly when it will occur.