Bitcoin vs Bitcoin Cash – Since the beginning, there were questions about bitcoin’s ability to scale effectively. Transactions involving digital currency bitcoin processed, verified and stored in the digital book known as a blockchain.
Blockchain book-recording technology is revolutionary. It makes a great book is much more difficult to manipulate. Because of the reality of what has happened verified by a majority vote, rather than by an individual actor. Also, this network is decentralized that exists on computers all over the world.
Problems with blockchain technology that the Bitcoin network is so slow. Especially compared with the banks related to credit card transactions like credit card company Visa Inc. (V).
For example, the process is close to 150 million transactions per day, averaging about 1,700 transactions per second. The company’s ability really way beyond that, at 65,000 transaction messages per second.
How many transactions can process per second bitcoin network? Transactions can take several minutes or more to process. As a bitcoin user’s network has grown.
The waiting time becomes longer. Because there are more transactions to process without a change in the underlying technology that processes them.
The ongoing debate around this bitcoin technology has been concerned with this central problem. That problem is scaling and increasing the speed of the transaction verification process.
Developers and cryptocurrency miners have come up with two main solutions to this problem. The first involves making the amount of data that needs to be verified in each of the smaller blocks. These creating more transactions are faster and cheaper.
While the latter requires making larger data blocks so that more information can be processed at one time. Bitcoin Cash (BCH) developed from this solution. Below, we will look more closely at how bitcoin and BCH different from each other.
KEY Doctrine Bitcoin Vs Bitcoin Cash
- Bitcoin is limited by the processing time of the transaction, The problem that has caused divisions between the factions in bitcoin mining and developing societies.
- Bitcoin Cash started by bitcoin miners and developers are concerned with the future of cryptocurrency bitcoin, and its ability to scale effectively.
- While the bitcoin block is limited to 1 MB, BCH block is 8 MB.
In July 2017, the mining pond and companies representing approximately 80 percent to 90 percent of the computing power bitcoin. To incorporate the technology known as a separate witness, called SegWit2x.
SegWit2x makes the amount of data that needs to be verified in every block smaller. By removing the signature data of the data block to be processed in each transaction and after it is installed in an extended block.
Signature data has been estimated to account for 65 percent of the processed data in each block, so this is not a significant technological shift.
Talk of doubling the size of a block of 1 MB to 2 MB ramped up in 2017 and 2018 and, In February 2019 the average block size bitcoin increased to 1,305 MB, surpassing the previous record.
In January 2020, however, the block size has dropped back to 1 MB in size average.4 larger blocks help in increasing the scalability of this bitcoin.
In September 2017, a study released by the exchange cryptocurrency SegWit BitMex shows that implementation has helped increase the size of the block, during a steady rate of adoption for technology.
If you still confuse about Bitcoin technology, you can watch the explanation at this video.
About Bitcoin Cash
Bitcoin Cash is a different story. Bitcoin Cash started by bitcoin miners and developers alike are concerned with the future of cryptocurrency and its ability to scale effectively.
However, these people have their reservations about technology adoption, separate witnesses. They feel as if SegWit2x did not address the fundamental problem of scalability in a meaningful way. Nor did it follow the roadmap that was originally outlined by Satoshi Nakamoto. An anonymous party who first proposed blockchain technology behind cryptocurrency.
Furthermore, the process of introducing SegWit2x as the way forward is anything but transparent. And there is concern that the decentralization and democratization introduced undermined the currency.
In August 2017, some miners and developers begin what is known as a hard fork, effectively creating a new currency called Bitcoin Cash. BCH has its blockchain and specifications, including the very important distinction of bitcoin.
BCH has implemented the block size increases from 8 MB to speed up the verification process. The difficulty level is adjusted to ensure the survival and transaction verification chain speed. Regardless of the number of miners support it.
Technical differences Bitcoin Vs Bitcoin Cash
Bitcoin Cash recognizes the flaw and adds protection adjustment to close this gap and create a new currency that is safer for all to use.
What factors affect the price of BCH and why it was a spike in November 2017?
Bitcoin Cash announced in August 2017. But RocketJump that happened in November of the same year. On 12 November, prices rise twice in one day and the official cash Bitcoin took second place, behind Bitcoin.
So, what factors are causing this spike?
Bitcoin has the weekend was really bad. Because hashing lowering power about 10,000 transactions pending in the network. As a result, the buyer moved to buy Bitcoin Cash.
Bitcoin Cash comes as a solution to the problem of speed is also known that Bitcoin suffers and offers a better solution than this Bitcoin SegWit2X. Today it is the only technology that offers solutions scale – which is a killer feature.
Another feature of the original Bitcoin does not have is the EDA algorithm – which makes the network more stable during periods of high prices.
Bitcoin hash rate vs. Bitcoin Cash
The main difference between the BTC and BCH is the size of the block. The Bitcoin block size is limited to 1 MB, whereas Bitcoin Cash offers a block size of 8 MB.
A Bitcoin block holds approximately 2500 transactions, while for the first BCH block, this number reached 7000. Thus, the prospects Bitcoin Cash in terms of scalability initially looked much better.
However, most of the infrastructure Bitcoin (wallet, payment services, etc.) do not support Bitcoin Cash. Also, consider it just another altcoin and not “new Bitcoin.” This means that its use is limited to speculation in the stock market.
All this leads us to the question of the real value of BCH. If it is not ready to be used and accepted by the buyer and seller. Why BCH increase in value?
Profitability mining of BTC vs. BCH
In its latest edition, the crypto-oriented research startup Diar revealed that mining revenues in a proof-of-work (POW) popular blockchains have exceeded more than $ 21.3 billion. As expected, Bitcoin is responsible for the largest part of this amount ($ 11.3 billion).
Bitcoin Cash miners have earned only $ 911.6 million.
Bitcoin vs Bitcoin Cash: Transactions Speed
BCH block can accommodate more transactions at once, which means that transactions are more likely to get into blocks without the need to wait for the next one.
However, it should be noted that the BCH is not used nearly as much as the BTC. Bitcoin Cash has not been tested to the same level in terms of network traffic.
In any case, the BCH is further ahead when compared with the high block BTC. A clear indicator that BCH is a mining block and confirm transactions faster.
That’s the difference between Bitcoin and Bitcoin Cash, I personally prefer Bitcoin cash because of the excess I’ve outlined above.