Download new multi-asset Bitcoin Cash wallet with built-in exchange. We support most of the blockchains. Only you control your funds. Receive, Store and exchange your cryptocurrency right in the interface.
Bitcoin Cash is a Bitcoin fork. In other words, it is a new cryptocurrency born from the original Bitcoin blockchain. Unlike Bitcoin, Bitcoin Cash has but a significant difference called "block size". In the Bitcoin Cash blockchain, the block size is 8 MB against 2 MB Bitcoin block size. The increased block size allows to handle over 2 millions transactions per day, whereas the Bitcoin blockchain capacity is only 250.000. High improvement, isn't it?
Nope, there are also some interesting innovations.
Fork means program code modification. The whole blockchain will be getting on the new rails with no backward compatibility to the older blocks/rules.
The blocks on the pre-forked blockchain are copied to the new network. That's it. You may ask, what happens to those who had funds on their addresses before the hardfork? They are lucky ones! Their accounts will be doubled.
The way a fork works is instead of creating a totally new cryptocurrency (and blockchain) starting at block 0, a fork just creates a duplicated version with the same history.
You have two ledgers: the old one and new one. All records will be copied and transferred from the old to the new one with one main rule: If you want to interact with the new chain, you must install the update.
The key reason is he scalability issues of the Bitcoin blockchain. The block stores transactions and when is filled, the other block is needed for a new record in the ledger. Hard fork appears because the Bitcoin community (stakeholders and miners) could not come up with a consensus.
How to increase the network capacity and make Bitcoin more scalable?
If you increase the block size, the transaction fees will be decreased. It affects miners that propagate the whole Bitcoin network all over the globe and want to keep their income level stable.
There also were discussions that SegWit (Segregation Witness) can store anaccount's data and slightly increase the block's capacity. SegWit is being largely criticized from the community for that reason. Would you trust another service to store some of your data if it fully contradicts the idea of decentralization in crypto?
Block mining is a complicated process which takes a lot of time and energy. Also, the miner, who found a block receives fee payments for each transaction. In 2017, Bitcoin was overloaded with transactions and sometimes the users waited for days to complete one. There also were speculations with fees, in case of making a transaction processing faster..
Bitcoin as a payment system was facing hard times with these situations, it shows that it isn’t fast, easily accessible and fully centralized.
As a reward is halved in every 210,000 blocks and block mining difficulties constantly increasing, the mining pools have been created, which are always interested in high fees and profits.
There were some attempts to implement changes in the Bitcoin protocol, to increase block size up to 2 MB, but they were not successful. Miner community wasn’t interested in making any changes in block rates, cause it may lead to lowering fee costs.
To solve the aforestated problem Bitmain presented Bitcoin ABS as a hard fork which would make necessary improvements in protocol saving the idea of transparency and decentralization. Soon the project received public acclaim and the name “Bitcoin Cash”.
All the data is stored in blockchain only. And no other parties have any access to it
The systems make changes in the block mining difficulty to attract miners and prevent blockchain from creating mining pools that may have control over the system. The Median Time Past which shows the time when the last 11 blocks were created to predict the time when the future block will be created. If the Median Time Past of the current block and the Median Time Past of 6 blocks before is greater than 12 hours then the difficulty reduces by 20% i.e. it becomes 20% easier for miners to find newer blocks.
Bitcoin Cash has a Replay Attack protection, sighash algorithm which helps to prevent users from sending transactions on the non-compatibility address. Like BTC instead of BCH for example. The problem is because the forks are working on the similar blockchain but with different protocols.
Try out new non-custodial solution. Via Atomic Wallet interface you can easily manage Bitcoin Cash and over 300 top assets. Only you have control over your funds. Private keys never leave your device.