Bitcoin Cash is the Cryptocurrency that was the result of the first Hard Fork of Bitcoin, where the main objective of this separation was for this new Crypto asset to be better when used as a means of payment and to be more scalable than its predecessor.
Bitcoin Cash was officially born on August 1, 2017 through the separation of the main branch or main chain of the Bitcoin Blockchain network, this process is known as Hard Fork. The reasons for this great change to be carried out were very varied and at the same time generated controversy within the community, since some were in favor of the separation and others were against it.
As we mentioned before, this separation from the main Bitcoin network was executed for different reasons presented by a part of the community, since Satoshi Nakamoto’s project was presenting some problems, which for the defenders of the fork should be resolved as soon as possible; Instead, the detractors of the separation claimed that the problems had to be solved without altering the original Bitcoin code, which led to a great debate that generated controversy within the Cryptocurrency community.
The defenders of the bifurcation proposed some ideas that would allow solving problems that had to be solved, since these problems derive from the same design of Bitcoin, among the most important problems we can find:
At the time of the Hard Fork, many of the characteristics that Bitcoin possessed were inherited by the Bitcoin Cash, including the mining process, since despite the fact that the bifurcation meant changing some things in the design, it was not necessary to change everything.
This is why we can find that Bitcoin Cash uses the same mining design as its older sister, uses the same Proof of Work protocol, and the same SHA-256 encryption model, allowing miners from the old coin to also mine the new one. At the beginning it was very profitable to mine in this Cryptocurrency since its mining difficulty was low, giving good profitability to the miners since they obtained more units for the same mining force; but this changed some time later since the profitability of mining dropped abruptly due to the same design that the defenders of the bifurcation had proposed, since the transactions were so cheap, the miners did not receive good returns for these commissions.
Although it is true that Bitcoin has a serious scalability problem, it is very likely that the Bitcoin Cash now has a problem of over scalability; since despite managing to implement its goal of increasing the block size by 8 MB, this new Cryptocurrency continued to increase this size.
And not only was it enough to be 8 times faster than its older sister, reaching a limit of 20,000 transactions, but a year later they made one more update to the block size, leaving it at a limit size of 32 MB, which would significantly increase its transaction capacity and therefore its scalability. But some studies of the Bitcoin Cash Blockchain have revealed that this transactional power is wasteful, even though its larger block sizes only occupy about 300KB of its maximum size, which means that almost most of them are empty.
Despite the fact that Bitcoin Cash has not positioned itself as one of the leading Cryptocurrencies, over the years it has managed to maintain itself constantly, even offering innovative ideas that enrich the ecosystem of Crypto assets, such as the implementation of the SLP project.
SLP or Simple Ledger Protocol is a protocol that will allow developers and users of the Bitcoin Cash web, the creation of Tokens, this project manages to add within this Cryptocurrency a programming model that is more advanced and easier to execute than its Bitcoin counterpart.
At the moment we do not have Bitcoin Cash within our platform, but we do plan to include it very soon in our catalog of Crypto assets, since Bitcoin Cash is a very solid currency with a very active community.
Yes, coming from a bifurcation and differentiating to a certain extent from the number 1 Cryptocurrency, Bitcoin Cash can be considered as an alternative currency to Bitcoin, where his desire to improve the problems that Bitcoin presents led him to be a newer and better digital asset.
Precisely because it wants to be a currency for commercial and exchange use, Bitcoin Cash has less market value than Bitcoin; since the latter obtained a different approach where it sought to be a store of value and not a Cryptocurrency for commercial use.