Bitcoin Cash (BCH): A Faster, Cheaper Alternative to Bitcoin

In recent years, the significant growth of blockchain technology and the spread of digital currencies have led to the introduction and development of various cryptocurrencies, among which, Bitcoin Cash, as one of the most important branches of Bitcoin, is introduced as a special place for digital currency activists, focusing on increasing the speed of transactions and reducing commission costs. BCH was introduced in 2017 in order to solve the problem of Bitcoin scalability and create a more efficient platform for everyday payments, and since then, it has been able to attract the attention of users and developers with features such as larger blocks, high processing speed and decentralized structure. This article will examine the history, features, advantages, challenges and applications of Bitcoin Cash, with the aim of comprehensively introducing this digital currency.

What is the Digital Bitcoin Cash (BCH)?

BCH is known as an independent fork of Bitcoin and is peer-to-peer. This cryptocurrency, with the abbreviation BCH, was created in response to the limitations of the Bitcoin network, especially in terms of scalability and slow transaction processing speed. The starting point of Bitcoin Cash dates back to block number 478559 in the Bitcoin chain, where developers decided to separate and create a new path for this cryptocurrency. The main goal of this digital currency is to increase the speed and reduce the cost of transactions on the blockchain. If you plan to work professionally in the field of cryptocurrencies, using virtual server (VPS) services can provide you with a suitable infrastructure.

Bitcoin Cash Advantages and Disadvantages

Understanding the advantages and disadvantages of the BCH can provide a better understanding of how the cryptocurrency actually performs. In this section, we will examine things like transaction speed, fee levels, mining structure, and level of public acceptance to help you gain a more comprehensive understanding of the Bitcoin Cash currency and make a more informed decision about whether to use or invest in it:

1. Block size

One of the most popular cryptocurrency issues was that transactions were processed at a slow pace. The purpose of the SegWit2x protocol was to raise the block size limit to 2MB. Bitcoin Cash does not have SegWit and initially had an 8MB block size limit in 2017, which allows it to process transactions much faster. This limit was increased to 32MB in 2018.

2. Transaction fee

Bitcoin Cash offers a lower transaction fee of approximately $0.2 per transaction, allowing you to save money compared to using BTC when making transactions.

3. Transaction speed

BCH is much faster than Bitcoin. Therefore, you do not have to wait 10 minutes to confirm any transaction such as Bitcoin. Of course, the volume of Bitcoin Cash transfers is not as large as Bitcoin, and it is not clear whether if Bitcoin Cash has such a high volume, it can still have a high speed in confirming the transaction or not.

4. Algorithm

Bitcoin Cash has a different hashing algorithm than Bitcoin. This means that communication between the two blockchains is no longer possible.

5. Popularity

Despite some technical advantages, Bitcoin Cash has yet to gain the same level of global popularity and trust as Bitcoin. Although it is growing within the cryptocurrency community, its public acceptance rate and user awareness are still limited compared to established cryptocurrencies.

6. Number of Miners

Mining Bitcoin Cash is relatively similar to Bitcoin mining. This means that the person who mines Bitcoin Cash earns much less profit than the person who mines Bitcoin with the same equipment. Because of this, Bitcoin has many miners and is a completely decentralized network. However, Bitcoin Cash does not have many miners, so it has a more centralized network.

How to Buy and Sell Bitcoin Cash

You can buy Bitcoin Cash using one of the following methods:

• ➊ Direct purchase from an online digital currency exchange
• ➋ Buy from a trusted person
• ➌ Shopping through the P2P platform

You can use one of the following methods to sell BCH:

• ➊ Direct sales through an exchange
• ➋ Direct sales to individuals
• ➌ Sales to individuals through the P2P platform

How to create a Bitcoin Cash wallet

There are two primary methods for creating a Bitcoin Cash wallet:

• ➊ First install an app on your desktop or mobile device
• ➋ Open an account with a cryptocurrency exchange

There is a wide selection of Bitcoin Cash wallets available. However, not all are created equal. In some cases, the wallet provider actually controls your Bitcoin Cash and restricts your financial freedom. The following wallets support Bitcoin Cash digital currency along with other cryptocurrencies:

• ➊ Trust Software wallet
• ➋ Coinomi Software wallet
• ➌ Trezor Hardware wallet
• ➍ Ledger Hardware wallet

Conclusion

Given the scalability challenges and high transaction costs on the Bitcoin network, the introduction of BCH is an important step towards optimizing the performance of cryptocurrencies. Relying on a decentralized structure, low fees, and high transaction confirmation speed, this cryptocurrency has been able to provide a suitable alternative for everyday payments and fast transactions on the blockchain platform. Although Bitcoin Cash still faces challenges such as global adoption and competition with large cryptocurrencies, its technical capacity and development-oriented goals indicate a bright future for this cryptocurrency. Ultimately, it can be said that BCH, as one of the outstanding options among functional cryptocurrencies, plays an effective role in the evolution of digital financial systems.