Bitcoin Cash (BCH) is a cryptocurrency that operates on a decentralized peer-to-peer network. Like other cryptocurrencies, it uses cryptography to secure and verify transactions and to control the creation of new units.
Bitcoin Cash was created in 2017 as a result of a hard fork in the Bitcoin blockchain. The main motivation behind the hard fork was to address the scalability issues of Bitcoin, particularly the limited block size of 1MB, which often resulted in slower transaction processing times and higher fees during times of high network activity.
Bitcoin Cash increased the block size to 8MB, which allows for more transactions to be processed per block, resulting in faster transaction times and lower fees. However, the larger block size also means that the blockchain requires more storage space, and full nodes require more computing power to operate.
Bitcoin Cash also implemented a modified difficulty adjustment algorithm called the Emergency Difficulty Adjustment (EDA). The EDA adjusts the difficulty of mining new blocks based on the total hashrate of the network, allowing for more consistent block times and reducing the likelihood of large fluctuations in the network's hashrate.
One of the key differences between Bitcoin and Bitcoin Cash is their respective visions for the future. While Bitcoin is seen as a store of value and a potential digital gold, Bitcoin Cash aims to be a fast and reliable payment system for everyday transactions.