Did you know? Bitcoin cash is originated from bitcoin itself, Bitcoin cash nodes were once the part of the bitcoin blockchain, bitcoin cash is the fork of bitcoin.
In this post, we will understand what is the difference between bitcoin and bitcoin cash, and which flaw of bitcoin encourage the birth of new coin called bitcoin cash.
Bitcoin is the cryptocurrency lies among the network of the computers on the top of blockchain technology. But there is a problem with this technology, the Bitcoin network is very slow.
It takes 10mins to complete one transaction. It means you have to wait for 10mins to complete your transaction. On the blockchain, transactions are stored into the block. Then the computer in the network get the entire block and verify at once. Once it is verified it is added into the blockchain. This process is called mining.
Bitcoin block size is 1MByte. There is a total of 21 million bitcoins. When a new block is added into the blockchain then new bitcoins are created as a reward to theses minner who are performing transactions. But this reward cut to half every 4 years.
Block Size Limit in Bitcoin
A block consists of a bundle of transactions in the blockchain network. Bitcoin block size is 1Mbyte. It means there will one only 1Mbyte of transactions in a block. A block with more than 1Mbyte transaction will be rejected by the network.
Slow Down in the network
Limiting block size could result in a slow network. As the bitcoin users are growing and more people will transact daily. Because bock size will remain fixed of 1Mbyte. but the number of transactions is increasing making the network slow down as the block size limit is reached.
Higher Transaction Fee
When the transaction near to the block size limit, everybody wants his transaction to be processed fast. Bitcoin network is greedy, the transaction which has a high transaction fee will be processed faster. All low fee transactions will take time to be processed may be it will take a few days to confirm.
There a lot of bitcoin fork like Litecoin, zcash, bitcoin cash and many more. They copied the code of bitcoin and did some changes in it and launched as a new coin, all the coin after bitcoin are called altcoins. Any altcoin somehow overcomes the flaw in bitcoin like transaction speed, increase in the volume of transactions, etc you can read flaws in bitcoin here.
Increasing block size in Bitcoin cash
Bitcoin cash (BCH) is one of the most famous fork of bitcoin. Bitcoin block size is 1Mbyte, Bitcoin cash increased the transaction speed by increasing the block size up to 8MByte. it means you don’t have to wait for 10min to complete your transaction.
By the increase in size, it processes more number of transactions with very low fee, because it can now process more number of transactions per block.
Cryoto World is still encourages new idea to increase transaction speed, stable price, easy to scale.