Cryptocurrency Bitcoin Cash (BCH) is gaining tremendous popularity. Bitcoin Cash is maintained by a team of experienced developers and enthusiasts. It is based on Bitcoin’s inherited mechanism and principles. The main difference from the first cryptocurrency is the speed of transactions and the commission on the network. A lot of investors in BCH are looking for a Bitcoin Cash wallet.
History of Bitcoin Cash (BCH)
Bitcoin Cash emerged as a result of a split in the Bitcoin community over the introduction of new mechanisms. Because of the ever-increasing popularity of cryptocurrencies, more and more people were using Bitcoin. Therefore, the number of transactions on the network was steadily increasing, which, at peak times, ran for long periods of time. The reason for this was a technical feature of the blockchain, which kept the block size below 1 MB. Transactions quickly filled the blocks, which were not capable of being generated faster than the scheduled time.
To solve the problem, community members proposed solutions — Bitcoin Unlimited and Segregated Witness. The Bitcoin Unlimited solution involved keeping Bitcoin’s source code intact while increasing block sizes. This would have facilitated more transactions per block. But due to the increase in transactions per block, the profitability of mining increases too.
Bitcoin developers abandoned this idea due to the high growth of the blockchain over time. Blockchain growth will only make mining more difficult and force little miners to leave the network. After that, the management of the network will fall into the hands of large miners who will centralize it. Therefore, the developers proposed Segregated Witness (SegWit). The protocol called for some data from each transaction and block to be moved outside the blockchain. The plan was that the space saved would also allow more transactions to be stored in the block.
Later, SegWit2x was created, which retained the terms of SegWit but increased the block size from 1 to 2 MB. Despite this, conservatives and fans of the source code did not compromise. Former Facebook engineer, Amaury Sechet and cryptocurrency enthusiast Roger Ver were the main ideologues of the concept.
On 1 August 2017, the Bitcoin network was hard-forked and split into two chains. One supported SegWit2x and stayed on the Bitcoin network. The other left things as they were, increasing the block size to 8 MB, thus triggering a separate Bitcoin Cash chain. On 15 May 2018, the community updated the Bitcoin Cash protocol and the block was increased to 32 MB. Half a year later, the network split again for the same reason. On 15 November 2018 was launched Bitcoin SV.
What is Bitcoin Cash (BCH)?
The Bitcoin Cash project is a payment ecosystem that operates on a peer-to-peer distributed network. To use BCH cryptocurrency you need a non-custodial BCH wallet like Sapien Wallet. This network originated as a result of Bitcoin hard fork, so it performs the same tasks. The operating principle is the same, except for the block size, which is larger than that of the first cryptocurrency. Due to that, more transactions can fit in one block, which affects the speed of the network and makes the transaction fee cheaper. This means that miners earn more because of the larger number of transactions per block.
Where to store Bitcoin Cash (BCH)?
The Bitcoin Cash project is a payment system, within which the digital currency BCH operates. BCH is primarily designed to pay for services, goods, and remuneration to miners. Miners keep the network running by validating user transactions. Some traders, funds, and companies use BCH as a savings tool.
The question of how to create a BCH wallet is the most popular among other questions about this cryptocurrency. Specialists do not recommend using exchanges for storing Bitcoin Cash (BCH), because it deprives the owner of the possibility to manage their funds. It is better to store BCH in a special Bitcoin Cash wallet like Sapien Wallet. The main advantages of Sapien wallet are:
- Non-custodial multi-currency crypto wallet
- User-friendly interface
- Built-in rating system
- Possibility of in-app correspondence
- Low cryptocurrency exchange fees
- Ability to buy and withdraw cryptocurrencies using Visa and Mastercard
- Fully decentralized cryptocurrency wallet
Sapien Wallet accepts a lot of different cryptocurrencies. The system does not contain any hidden information, which causes the trust of a huge number of users. Anytime you want to sell or buy Bitcoin Cash (BCH), you can be sure that no one else can track the transactions. Everything is stored only in your Sapien wallet.
Bitcoin Cash (BCH) blockchain
The digital backbone of Bitcoin Cash is built on a distributed network and blockchain with open and free software. Bitcoin Cash’s blockchain architecture replicates that of Bitcoin. User transactions are conducted by miners and written into blocks that are stacked into the chain.
A copy of the blockchain resides on each miner’s hardware and is synchronized for updates. Each transaction and block is written in order and has its own unique number. The Scrypt algorithm is responsible for this process. The block generation is called hashing. SHA 256 algorithm is responsible for hashing.
Each hash is computed from the previous hash and the last transaction. All transactions are authenticated with unique digital signatures and are sequentially stacked into blocks. Also, the Bitcoin Cash blockchain has larger blocks than Bitcoin, which affects the complexity of mining. To address this, a special mechanism was introduced whereby the level of mining complexity depends on how many miners are working on the Bitcoin Cash network.
Bitcoin Cash (BCH) Consensus
Bitcoin Cash’s blockchain is stored in a distributed network of nodes that use a Proof-of-Work consensus. The PoW consensus algorithm is the mechanism that is responsible for ensuring that nodes comply with network rules. Using this algorithm, nodes prove work and conduct transactions, extending the blockchain.
The proof-of-work of each block is incorporated into the subsequent block to form a consistent blockchain structure. This process is called mining, and the owners of the nodes are the miners. During mining, a node collects information from existing network transactions. Based on this information, through computation, the node conducts the transaction.
PoW has a strict rule that only the node that hashed the block first can form the block and conduct the transaction. Each hash of the transaction is synchronized with the other nodes and written to the blockchain.