What is Bitcoin Cash (BCH)?

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17 Jan 2024

Bitcoin is the father of the cryptocurrency world and many people believe in this project. However, it also has many disadvantages. The development team can solve these problems, but on one condition: they have to ignore some principles of the system. And since they did not want to do this, some groups created a huge opposition and started working on a hard-fork of BTC. As a result, Bitcoin Cash emerged. While this money was being created, all the forms asked "What the hell is Bitcoin Cash?" He was full of questions like these. What advantages can it provide? Will it dethrone Bitcoin?

Nowadays, BCH has been trading in the market for 7 years now and many cryptocurrency users know everything about it. However, if you are new to the market, you may not have any knowledge about this topic. Therefore, we will tell you about the most important and basic information about this entity.

What does Bitcoin Cash mean?

Just like Bitcoin, Bitcoin Cash is a distributed and p2p payment system. However, there is an important difference: Bitcoin was created from 0, while BCH is a hard-fork. This means that there have been significant changes in the code of the cryptocurrency, with the result that old and new versions of the blockchain cannot exist in a single system. That's why Bitcoin Cash was created based on Bitcoin.

Bitcoin has 6 forks. BCH is the most successful among them. So, Forks are a normal phenomenon in the cryptocurrency world. However, 90% of the community accepted this change. Bitcoin Cash was born when a group of developers had some ideas to improve BTC, while another group opposed these ideas.

The Bitcoin community was very large at that time, so it was impossible for everyone to leave this network and move to the new network. Just as there are many disagreements in the cryptocurrency community, BTC and BCH also co-exist.

Who created BCH?

Amaury Setchet is the main developer of Bitcoin Cash. One of the most interesting information is that the hard-fork idea did not come from him. He actually got this idea from one of the members of the Bitmain team. When he received resources from the Bitcoin Development Team, he started doing research. Before venturing into the cryptocurrency world, Amaury was a member of the Facebook development team but had a keen interest in digital currencies.

Jian Wu is one of the co-founders of Bitmain and one of the most famous supporters of the Bitcoin Cash idea. Some say that Jian Wu told Amaury to start working on BCH. Jian provided the first hashrate for BCH mining.

Amaury worked with a group from the Bitcoin Development Team that wanted to modify the BTC blockchain. These have helped him overcome many problems associated with this cryptocurrency. Also, one of them had the idea of increasing the block size.

When was it released?

Bitcoin Cash was launched on August 1, 2017. However, development work began much earlier than that, in the spring of 2017, when Bitcoin was facing increasingly serious problems. There was a soft fork SegWit before, but it did not solve the problem.

August 1, 2017: It was launched and became one of the best cryptocurrencies by market value.
August 2, 2017: Its value increased by 100%.
August 19, 2017: The first jump in BCH value, the price went up to $1,000.
August 30, 2017: Almost 1,500 blocks were found.
November 13, 2017: EDA algorithm started to be used. This solved some of the problems by changing the complexity of mining.
December 5, 2017: It started trading on Bitstamp.
December 19, 2017: It started trading on Coinbase.
December 20, 2017: It reached its highest value – $4,091.
January 10, 2018: Block Explorer switched from BTC to BCH.

How is Bitcoin Cash different from Bitcoin?

As mentioned before, a hard fork refers to significant changes in the cryptocurrency code. So, Bitcoin Cash has some similarities and some differences with Bitcoin.

First, BCH emission is 21 million coins. New coins are produced by mining and also use the SHA-256 algorithm and Proof of Work protocol. Block duration is 10 minutes.

The main difference is the block size. While Bitcoin has a permanent block size of 1MB, BCH's block size is currently 32 MB. At launch, the block size was only 8MB, but the developers had foreseen the possibility of this increasing. You ask why? This was because BTC transactions were becoming slower and more expensive due to the small block size.

What are your thoughts about BCH, Amaury Setchet and Jihan Wu? Share them in the comments section below.

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