What is Bitcoin Cash? It is a cryptocurrency known as peer-to-peer electronic cash.
In a short time, this cryptocurrency could become one of the most valuable and important currencies for investors.
The purpose of creating Bitcoin Cash was to solve some of the problems of Bitcoin.
Bitcoin had a slow transaction speed.
Also, to update the protocols of a blockchain, these protocols cannot be changed.
Therefore, soft fork or hard fork is used to update.
A soft fork is actually an update to the blockchain.
There was a lot of opposition to using a soft fork to fix Bitcoin’s problems.
Therefore, the hard fork method was chosen as a solution.
In a hard fork, the goal is to make fundamental changes in the blockchain network of the desired cryptocurrency.
These changes are such that they are no longer compatible with older versions.
On the other hand, a new cryptocurrency should be created in the same network that can support the new changes.
How does Bitcoin Cash work?
The main goal of Bitcoin Cash is to be used as a daily payment system by people.
This cryptocurrency seeks to enable people to send and receive their crypto assets easily and quickly.
At first, new blocks were mined in Bitcoin Cash every 10 minutes.
But developers changed this process to motivate miners more.
They used Emergent Hardness Adjustment Algorithm (EDA) to reduce the difficulty of mining.
So that if the extraction time of 6 blocks exceeds 12 hours, this algorithm reduces the difficulty of extraction by about 20%.
This algorithm created other problems in the network and the developers were forced to make further changes to it.
Extraction
This currency runs on the decentralized network.
Decentralization means that the network is not controlled by any individual or organization.
To create a decentralized system to validate transactions, we need nodes.
Miners use powerful computing hardware to find solutions to difficult mathematical problems on the blockchain.
A transaction on the block is confirmed when the computational problem is solved by a node in the network.
Next, the node receives Bitcoin Cash as a reward.
usage
The main use of Bitcoin Cash is to perform transactions in a decentralized manner.
Bitcoin Cash is an option to invest and maintain asset value over time.
Of course, it should be noted that this cryptocurrency is not at all comparable to Bitcoin from the point of view of many market participants.
Bitcoin has a much stronger psychological support than this cryptocurrency.