When Bitcoin was created, it had a block-size limit of 1MB making it process about 7 transactions per second. Initially, this speed of transaction was OK due to the lower number of people mining it or using it for transactions. As the years went by, more people became interested in owning and using Bitcoin. This led to an increase in the number of transactions resulting in very slower transaction speed which was quite displeasing to miners. In other to solve this problem, the Bitcoin Cash was created just as the popular adage goes “necessity is the mother of invention”.
In August 2017, Bitcoin Cash was created. It came as a fork from Bitcoin in other to allow more transactions to take place, hence, meeting the demands Bitcoin couldn’t catch up with. Just like Bitcoin, Bitcoin Cash shares the same codebase. The only difference being that Bitcoin Cash uses a block-size limit of 8MB. That means, in a day, about two million transactions can take place.
Created to meet the needs of Bitcoin, Bitcoin Cash has some advantages over Bitcoin in the sense that
- Bitcoin Cash is able to process more transactions in a given time at an affordable rate due to its Larger block-size limit.
- Its high rate of scalability paves way for a rise in the number of blocks, and may even go higher as the block-size limit increases.
- Merchant adoption of Bitcoin becomes rather hectic. Confirmation of payment is compulsory and takes minutes or even days to complete. Bitcoin Cash seeks to solve this problem. It has several tools that seek to make merchant adoption easier in a less amount of time.
- Bitcoin Cash has DAA ( Difficulty Adjustment Algorithm) with respect to mining. This regulates the number of blocks to be mined in a day. Mining DAA makes sure the specific number of blocks is mined and does not exceed the required number.
The Bitcoin Cash was created and made accessible to everyone who wants to invest in digital currency with less complications.