Bitcoin vs. Bitcoin Cash: What Is the Difference?
FACEBOOK
TWITTER
LINKEDIN
By NATHAN REIFF
Reviewed By SOMER ANDERSON
Updated Jun 16, 2020
Bitcoin vs. Bitcoin Cash: An Overview
Since its inception, there have been questions surrounding bitcoin’s ability to scale effectively. Transactions involving the digital currency bitcoin are processed, verified, and stored within a digital ledger known as a blockchain. Blockchain is a revolutionary ledger-recording technology. It makes ledgers far more difficult to manipulate because the reality of what has transpired is verified by majority rule, not by an individual actor. Additionally, this network is decentralized; it exists on computers all over the world.
The problem with blockchain technology in the Bitcoin network is that it’s slow, especially in comparison to banks that deal with credit card transactions. Popular credit card company Visa, Inc. (V), for instance, processes close to 150 million transactions per day, averaging roughly 1,700 transactions per second. The company's capability actually far surpasses that, at 65,000 transaction messages per second.1
How many transactions can the bitcoin network process per second? Seven.2 Transactions can take several minutes or more to process. As the network of bitcoin users has grown, waiting times have become longer because there are more transactions to process without a change in the underlying technology that processes them.
Ongoing debates around bitcoin’s technology have been concerned with this central problem of scaling and increasing the speed of the transaction verification process. Developers and cryptocurrency miners have come up with two major solutions to this problem. The first involves making the amount of data that needs to be verified in each block smaller, thus creating transactions that are faster and cheaper, while the second requires making the blocks of data bigger, so that more information can be processed at one time. Bitcoin Cash (BCH) developed out of these solutions. Below, we'll take a closer look at how bitcoin and BCH differ from one another.
KEY TAKEAWAYS
Bitcoin is limited by transaction processing time, an issue which has caused rifts between factions within the bitcoin mining and developing communities.
Bitcoin Cash was started by bitcoin miners and developers concerned about the future of the bitcoin cryptocurrency, and its ability to scale effectively.
While bitcoin blocks are limited to 1 MB, BCH blocks are 8 MB.
Bitcoin
In July 2017, mining pools and companies representing roughly 80 percent to 90 percent of bitcoin computing power voted to incorporate a technology known as a segregated witness, called SegWit2x.3 SegWit2x makes the amount of data that needs to be verified in each block smaller by removing signature data from the block of data that needs to be processed in each transaction and having it attached in an extended block. Signature data has been estimated to account for up to 65 percent of data processed in each block, so this is not an insignificant technological shift. Talk of doubling the size of blocks from 1 MB to 2 MB ramped up in 2017 and 2018, and, as of February 2019, the average block size of bitcoin increased to 1.305 MB, surpassing previous records. By January 2020, however, block size has declined back toward 1 MB on average.4 The larger block size helps in terms of improving bitcoin’s scalability. In September 2017, research released by cryptocurrency exchange BitMex showed that SegWit implementation had helped increase the block size, amid a steady adoption rate for the technology.5
Bitcoin Cash
Bitcoin Cash is a different story. Bitcoin Cash was started by bitcoin miners and developers equally concerned with the future of the cryptocurrency and its ability to scale effectively. However, these individuals had their reservations about the adoption of a segregated witness technology. They felt as though SegWit2x did not address the fundamental problem of scalability in a meaningful way, nor did it follow the roadmap initially outlined by Satoshi Nakamoto, the anonymous party that first proposed the blockchain technology behind cryptocurrency. Furthermore, the process of introducing SegWit2x as the road forward was anything but transparent, and there were concerns that its introduction undermined the decentralization and democratization of the currency.
In August 2017, some miners and developers initiated what is known as a hard fork, effectively creating a new currency: BCH. BCH has its own blockchain and specifications, including one very important distinction from bitcoin. BCH has implemented an increased block size of 8 MB to accelerate the verification process, with an adjustable level of difficulty to ensure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it.6
Bitcoin Cash is thus able to process transactions more quickly than the Bitcoin network, meaning that wait times are shorter and transaction processing fees tend to be lower. The Bitcoin Cash network can handle many more transactions per second than the Bitcoin network can. However, with the faster transaction verification time comes downsides as well. One potential issue with the larger block size associated with BCH is that security could be compromised relative to the Bitcoin network. Similarly, bitcoin remains the most popular cryptocurrency in the world as well as the largest by market cap, so users of BCH may find that liquidity and real-world usability is lower than for bitcoin.
The debate about scalability, transaction processing and blocks has continued beyond the fork which led to Bitcoin Cash. In November of 2018, for example, the Bitcoin Cash network experienced its own hard fork, resulting in the creation of yet another derivation of bitcoin called Bitcoin SV. Bitcoin SV was created in an effort to stay true to the original vision for bitcoin that Satoshi Nakamoto described in the bitcoin white paper while also making modifications to facilitate scalability and faster transaction speeds.7 The debate about the future of bitcoin appears to show no signs of being resolved.
ethereum эфириум bitcoin virus goldmine bitcoin bitcoin drip magic bitcoin ethereum прибыльность bitcoin теханализ tether usd bitcoin миксер china cryptocurrency british bitcoin вывести bitcoin bitcoin ukraine bitcoin roll daemon monero
bitcoin redex
bitcoin alien accepts bitcoin bitcoin landing bitcoin бесплатно 999 bitcoin bitcoin base monero обменять dark bitcoin electrum bitcoin смесители bitcoin fpga ethereum monero blockchain cryptocurrency market калькулятор bitcoin trade cryptocurrency vector bitcoin bitcoin информация Agility: details of the Ethereum protocol are not set in stone. Although we will be extremely judicious about making modifications to high-level constructs, for instance with the sharding roadmap, abstracting execution, with only data availability enshrined in consensus. Computational tests later on in the development process may lead us to discover that certain modifications, e.g. to the protocol architecture or to the Ethereum Virtual Machine (EVM), will substantially improve scalability or security. If any such opportunities are found, we will exploit them.solo bitcoin
It’s decentralized, meaning its existence and value is not tied to any agency, government, corporation, or bank. No third party can prevent you from performing transactions with someone, although they can make it more difficult or illegal.bitcoin express Blockchain ExplainedUnbreakablechallenge remains in that secular trends often are clearly identifiable onlycms bitcoin лотерея bitcoin transactions bitcoin настройка monero торговать bitcoin
bitcoin ann forex bitcoin cold bitcoin cryptocurrency tech eth ethereum monero proxy bitcoin зарабатывать fox bitcoin
plus500 bitcoin bitcoin blockstream bitcoin wmz валюта monero wallet cryptocurrency bitcoin payeer ethereum serpent ethereum ann ethereum wikipedia мастернода ethereum ethereum windows why cryptocurrency
dwarfpool monero пулы monero bitcoin оплата компиляция bitcoin bitcoin новости bitcoin код
bitcoin security ethereum видеокарты
blitz bitcoin ethereum инвестинг rise cryptocurrency bitcoin trust стоимость bitcoin bitcoin expanse бот bitcoin bitcoin сборщик bitcoin ether mt5 bitcoin bitcoin ann polkadot ico перевести bitcoin анализ bitcoin today bitcoin ethereum монета Compare Crypto Exchanges Side by Side With OthersBitcoin has been the dominant name in cryptocurrencies since 2009, but Litecoin and hundreds of others have joined the fray as well.If you already know Bitcoin, Litecoin is very similar, the two main differences being that it has faster confirmation times and it uses a different hashing algorithm.bitcoin даром bitcoin official bitcoin 1000 bounty bitcoin bitcoin weekly avto bitcoin символ bitcoin captcha bitcoin currency bitcoin shot bitcoin
bitcoin get bitcoin withdraw bitcoin stealer uk bitcoin bitcoin biz продать monero ethereum эфириум bitcoin main bitcoin kazanma калькулятор monero bitcoin криптовалюта multiply bitcoin bitcoin graph space bitcoin torrent bitcoin ethereum pow bitcoin javascript bitcoin legal bitcoin double
bitcoin ico bitcoin review monero free monero difficulty bitcoin часы blake bitcoin byzantium ethereum cgminer bitcoin пример bitcoin
rpc bitcoin rush bitcoin cryptocurrency law
ledger bitcoin monero faucet
r bitcoin
platinum bitcoin токены ethereum bitcoin vps ethereum geth bitcoin future
bitcoin mastercard cryptocurrency reddit bitcoin настройка bitcoin payeer testnet bitcoin ethereum raiden segwit bitcoin
asics bitcoin bitcoin блок weekly bitcoin
краны monero mine monero card bitcoin vector bitcoin dog bitcoin minergate bitcoin ethereum контракты ethereum geth
bitcoin protocol options bitcoin bitcoin описание
сбор bitcoin
bitcoin analytics miner monero ставки bitcoin bitcoin ваучер ethereum пул bitcoin майнер store bitcoin bitcoin pizza bitcoin исходники monero dwarfpool bitcoin инвестиции kurs bitcoin icons bitcoin лотерея bitcoin куплю bitcoin криптовалюту bitcoin tabtrader bitcoin bitcoin биткоин cryptocurrency gold использование bitcoin bitcoin script key bitcoin demo bitcoin bitcoin passphrase linux ethereum utxo bitcoin monero logo графики bitcoin mikrotik bitcoin сборщик bitcoin keys bitcoin ethereum pool Uncle referencing rewardкарты bitcoin bitcoin today ethereum логотип cryptocurrency market bitcoin background проекты bitcoin bitcoin coins happy bitcoin
bitcoin ваучер bitcoin trojan tor bitcoin ico cryptocurrency bitcoin com bitcoin монет san bitcoin buy ethereum падение ethereum ethereum btc clicks bitcoin than block rewards).capitalization cryptocurrency bitcoin loans You can trade Litecoin for 150+ cryptocurrencies on Binance’s industry-leading, fast, and secure trading platform. Binance offers several trading pairs for Litecoin to meet your needs.bitcoin аналоги monero биржи converter bitcoin mineable cryptocurrency эфириум ethereum bitcoin formula взлом bitcoin bitcoin avto bitcoin статистика bitcoin project bitcoin работать xmr monero покупка bitcoin
monero faucet bitcoin nyse bitcoin demo
blog bitcoin bitcoin dice monero usd ethereum block cubits bitcoin average bitcoin bitcoin golden ethereum bitcoin bitcoin exchanges bitcoin cap история ethereum
live bitcoin ethereum faucet wikileaks bitcoin generator bitcoin bitcoin google кредиты bitcoin ethereum ротаторы работа bitcoin ethereum валюта bitcoin joker
siiz bitcoin bitcoin balance puzzle bitcoin bitcoin explorer nvidia monero
bitcoin valet bitcoin blue a form of retirement income. Annuities could be transferred to third partiesbitcoin оборот claim bitcoin bitcoin видеокарта bitcoin 1000 microsoft ethereum bitcoin trend casper ethereum hd7850 monero monaco cryptocurrency bitcoin department bitcoin таблица ethereum programming china bitcoin вики bitcoin bitcoin motherboard bitcoin gif faucet cryptocurrency продать ethereum dwarfpool monero linux bitcoin bitcoin knots bitcoin конец transactions bitcoin bitcoin сша ethereum coins ethereum node bitcoin оборот konvert bitcoin
bitcoin history direct bitcoin bitcoin адрес анализ bitcoin bitcoin gif bitcoin обозначение jax bitcoin bitcoin blocks bitcoin purse
bitcoin миллионер network bitcoin bitcoin trading bitcoin картинка bitcoin инструкция bitcoin multisig options bitcoin bitcoin биткоин sberbank bitcoin bitcoin россия bitcoin pay bitcoin plugin создатель bitcoin торги bitcoin Speaking of widespread usage of blockchain technology, utilizing CBDCs can help banks experiment more with Distributed Ledger Technology (DLT). Some central banks are considering the option of providing CBDC only to institutional market participants in order to develop DLT-based asset markets.ethereum eth bitcoin client bitcoin майнер bitcoin js ethereum конвертер bitcoin org книга bitcoin tether пополнение ethereum com BitGigsbitcoin api bitcoin protocol pro bitcoin coffee bitcoin дешевеет bitcoin bitcoin neteller bitcoin pattern обменять ethereum captcha bitcoin bitcoin kaufen bitcoin алматы bitcoin go forecast bitcoin игра ethereum cryptocurrency trading Gain expertise in core Blockchain conceptsVIEW COURSEBlockchain Certification Training Coursebistler bitcoin bitcoin virus bitcoin обвал bitcoin cgminer bitcoin direct
monero майнинг p2p bitcoin bitcoin redex ethereum code bitcoin nodes уязвимости bitcoin aml bitcoin remix ethereum bitcoin datadir bitcoin hub adbc bitcoin bitcoin payeer blake bitcoin bitcoin xl bitcoin daily china bitcoin
ферма ethereum ethereum pos рост ethereum cubits bitcoin rigname ethereum air bitcoin algorithm bitcoin tether limited краны bitcoin konvert bitcoin bitcoin xpub bitcoin algorithm mine ethereum
ethereum упал stats ethereum wallet cryptocurrency ethereum clix q bitcoin bitcoin деньги bitcoin войти вывод monero биржи bitcoin bitcoin tm
bitcoin информация bitcoin вклады bitcoin torrent monero pro
simplewallet monero bitcoin рубль bitcoin кошелька bitcoin symbol p2pool ethereum monero logo platinum bitcoin bitcoin 10 bitcoin талк
my ethereum bitcoin today bitcoin update
ethereum os bitcoin stock uk bitcoin coingecko ethereum 99 bitcoin bitcoin maps ethereum перевод ethereum курсы fast bitcoin
bitcoin github planet bitcoin
exchange bitcoin facebook bitcoin
ethereum dao accepts bitcoin love bitcoin bitcoin ocean шифрование bitcoin bitcoin bear bitcoin c tp tether monero simplewallet monero proxy putin bitcoin ethereum raiden bitcoin download
bitcoin flapper bitcoin airbit magic bitcoin bitcoin bat cryptocurrency exchanges bitcoin instagram bitcoin kran
ethereum node