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BTC and BCH have been around for a while and although they almost have the same name and they’re from the same origin, they do have some differences. Today we’ll be answering the question, What is the difference between Bitcoin and Bitcoin Cash?
But first, let’s talk about them briefly.
According to Wikipedia, Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
Bitcoin is the first-ever Cryptocurrency to be introduced into the market and is the most popular with the largest market capitalisation.
About Bitcoin Cash
It is an altcoin cryptocurrency that shares many similar characteristics to BTC. Some regard it as a “fork” of Bitcoin. It was created in 2017 but later in 2018, it was split into two cryptocurrencies; Bitcoin Cash and Bitcoin SV (Satoshi Vision).
Why was Bitcoin Cash Invented?
According to Bitcoin inventor, Satoshi Nakamoto, BTC was meant to be a peer-to-peer cryptocurrency used for daily transactions. Over time, as it gained mainstream traction and its price surged, Bitcoin became an investment vehicle instead of a currency.
Its blockchain witnessed scalability issues because it could not handle the increased number of transactions. The confirmation time and fees for a transaction on bitcoin’s blockchain increased rapidly.
BCH was brought about to solve these problems by increasing the size of blocks to between 8 MB and 32 MB, thereby enabling the processing of more transactions per block.
What is the difference between Bitcoin and Bitcoin Cash?
Below are some differences between BTC and BCH.
- The difference in Block Size:
While Bitcoin maintains its 1MB block size, Bitcoin cash has grown to 32MB.
This means that transactions on BCH now cost less than a penny and it can process as many as 200 transactions per second.
- Smart Contracts and DeFi (Decentralised Finance):
Bitcoin does not support smart contracts, although work is being done to help build decentralized finance (DeFi) services on top of it, Meanwhile, Bitcoin Cash has started using smart contract
languages like Cashscript to enable more complex functions on it.
- Issuance of Tokens:
You have to use the Omni layer, which is a platform for creating and trading custom digital assets and currencies, to be able to issue tokens on the Bitcoin blockchain.
Meanwhile, BCH created the Simple Ledger Protocol (SLP). The protocol allows developers to issue tokens on top of BCH, similar
to the way, tokens are issued on the Ethereum blockchain.
This is a feature on the Bitcoin network that allows someone to get a transaction that is “stuck” without being processed, replacing that unconfirmed transaction with a different version of it with a higher transaction fee attached.
BCH, on the other hand, does not have this feature which makes unconfirmed transactions irreversible on its network.
Although these two networks were both created by the same person, they still have their differences. BCH was introduced to make transactions faster, which was the initial plan of BTC.
We’re looking forward to seeing how BCH turns out.