Bitcoin cash is a cryptocurrency created in August 2017, arising from a fork of Bitcoin, the classic/original cryptocurrency. The most significant difference between Bitcoin and Bitcoin Cash has to do with the size of blocks on the blockchain.
By increasing the block size from 1MB up to 8MB, Bitcoin Cash allows many more transactions to be processed in one block. The idea is to process larger transaction volumes faster and for lower fees.
Bitcoin Cash offers lower fees and a purportedly, more reliable transaction rate than Bitcoin. In terms of development, Bitcoin Cash and Bitcoin share a majority of code. Having so much code in common makes developing software or altering existing software to support Bitcoin Cash quite simple.
Bitcoin Cash differs from Bitcoin Classic in that it increases the block size from 1 MB to 8 MB.
Bitcoin Cash attempts to increase the number of transactions that can be processed in a given interval of time. Bitcoin Cash supporters hope that this change will allow Bitcoin Cash to compete with the volume of transactions that PayPal and Visa can handle by increasing the size of blocks. Since the issue of scalability tends to be at the forefront of cryptocurrency debates, developers have made increasing block size and improving transaction processing speeds their top focus areas.
Despite the many vocal Bitcoin Cash advocates, as of early 2019, Bitcoin cash is used in exchanges at far lower rates than Bitcoin. In fact, with so little traffic that as of yet in the Bitcoin Cash network, the block size increase hasn't been necessary to process transactions more quickly than Bitcoin.
Since the beginning, there have been questions surrounding bitcoin's ability to scale effectively. Bitcoin is a cryptocurrency that exists within a decentralized network of computers all over the world. Payment transactions are verified by majority rule, not by an individual actor.
The problem with this technology is that it's slow, especially in comparison to banks that deal with credit card transactions. For example, Visa processes 150 million transactions per day, averaging roughly 1,700 transactions per second. The company's capability far surpasses that, standing at aproximately 24,000 transactions per second.
How many transactions can the bitcoin network process per second? Seven.
Transactions take about 10 minutes to process. As the network of bitcoin users grows, waiting times will become longer since there are more transactions to handle without a change in the underlying technology that processes them. Ongoing debates around bitcoin's technology have graviated around this central problem of scaling and increasing the speed of the transaction verification process.
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