Bitcoin Cash is a cryptocurrency created on August 27, 2017, from Bitcoin’s fork. It increased the size of blocks allowing more processed transactions improving scalability.
The cryptocurrency split into Bitcoin Cash ABC and Bitcoin Cash SV after undergoing another fork in November 2018.
Bitcoin Cash is referred to as Bitcoin Cash because it uses the original Bitcoin Cash client.
Bitcoin Cash and Bitcoin share several technical similarities. Both cryptos use the same consensus mechanism and capped their supply at 21 million.
What’s the difference?
Bitcoin inventor Satoshi Nakamoto created a peer-to-peer cryptocurrency that was used for daily transactions.
However, the traction gained over the years created a surging price, and Bitcoin became an investment vehicle instead of a currency.
The blockchain was not designed to handle the increased number of transactions. Bitcoin had scalability issues because of that.
Bitcoin Cash proposed to solve Bitcoin’s situation by increasing the size of blocks to between 8 MB and 32 MB. The increase permitted the process of more transactions per block.
The average number of transactions per block generated by Bitcoin Cash was between 1,000 and 1,500.
The number of transactions on Bitcoin Cash’s blockchain during a stress test in Sep. 2018 surged to 25,000 per block.
Bitcoin Cash doesn’t incorporate Segregated Witness. SegWit only retains information or the metadata relating to a transaction in a block, restoring them in a block.
Bitcoin and Bitcoin Cash block sizes are different. Both use Proof of Work to mine new coins and share the services of Bitmain, the world’s biggest cryptocurrency miner.
However, miners took advantage of this similarity by alternating their mining activity between Bitcoin and Bitcoin Cash.
Bitcoin Cash has revised its EDA algorithm to make it easier for miners to generate the cryptocurrency.