With the increase in Bitcoin popularity, the amount of time that it can take to process a transaction has become much slower. Therefore, the cost of each transaction has also got more expensive for the sender. To improve the current system of Bitcoin, Bitcoin Cash was introduced.
So far, Bitcoin cash has been doing an excellent job; although it was released in August 2017, it has become one of the top 5 cryptocurrencies. It can be quite obvious when we look at how it is traded among the popular exchanges.
What is Bitcoin Cash?
Bitcoin cash started during the agreements and disagreements about how to improve the technology of Bitcoin. A big issue with Bitcoin is that the more people use it, the longer the network takes, and the longer a transaction is processed. This means that the transaction fee becomes more expensive.
It started to become a big problem for the Bitcoin enthusiasts, especially now that the cryptocurrency is getting very popular among people. To find the solution, the developers suggested two different ideas, i.e., change in each block’s format or increase the block size. So, in the end, the concept of change in each block’s structure was adopted.
What does Bitcoin cash do?
People who held Bitcoin on the day Bitcoin Cash was created could automatically receive free Bitcoin cash. Those who were holding Bitcoin received Bitcoin cash at the ratio of 1:1. The main idea of Bitcoin cash is to be used as a payment system, which means that people can send and receive funds just like the original Bitcoin client.
Many thought that people who received Bitcoin cash for free would sell it as soon as possible, but this was not the case, and since the release of Bitcoin cash, it has performed very well. As cryptocurrency is still in its early days, therefore, not many merchants may accept it, especially when compared to Bitcoin. However, the popularity of Bitcoin cash is increasing, and therefore, new merchants have started to accept it as a payment method.
How is Bitcoin cash mined?
Bitcoin cash is also decentralized, just like the majority of cryptocurrencies. This means that not a single person or authority controls the network. However, a decentralized system requires nodes to verify the transactions. People known as miners use the computing power to solve any mathematical equations on the blockchain. Once the node on the network solves a mathematical equation, it then verifies a transaction block and receives a reward.
Nowadays, it is becoming much harder to earn money from mining because there is a lot of competition. Only the ones who can generate vast amounts of computing power are rewarded. Therefore, one needs to invest a lot of money to create enough computing power to become a successful miner.
There are multiple independent teams of developers that are working on providing software implementations. These teams are making significant innovations and upgrades to make Bitcoin cash the best cryptocurrency in the world. The decentralized development also keeps Bitcoin cash resistant to any political and social attacks on the protocol development.