Bitcoin Cash
| Bitcoin Cash | |
|---|---|
| Ticker symbol | BCH[1] |
| Precision | 10−8 |
| Development | |
| Implementation(s) | Bitcoin ABC, Bitcoin Unlimited |
| Latest release | / 1&#;September (4&#;months ago)&#;()[2] |
| Development status | Active |
| Project fork of | Bitcoin |
| Website | conwaytransport.com.au[citation needed] |
| Ledger | |
| Ledger start | 3&#;January (12&#;years ago)&#;()[3][4]:ch. 35 |
| Split height | # / 1&#;August (3&#;years ago)&#;() |
| Split from | Bitcoin |
| Split ratio | |
| Timestamping scheme | Proof-of-work (partial hash inversion) |
| Hash function | SHA |
| Issuance schedule | Initially 50 BCH per block, halved every , blocks |
| Block reward | BCH [a] |
| Block time | 10 minutes |
| Block explorer | conwaytransport.com.au |
| Supply limit | 21,, BCH[b] |
| |
Bitcoin Cash is a cryptocurrency that is a fork of Bitcoin.[5][6] Bitcoin Cash is a spin-off or altcoin that was created in [7][8][5]
In , Bitcoin Cash split into two cryptocurrencies: Bitcoin Cash and Bitcoin SV.[9]
Bitcoin Cash is sometimes also referred to as Bcash.[10]
History
The need to accommodate an increasing count of transactions per second contributed to a push by some in the community to create a hard fork to increase the block size limit.[11] This push came to a head in July when some members of the bitcoin community including Roger Ver felt that adopting BIP 91 without increasing the block-size limit favored people who wanted to treat bitcoin as a digital investment rather than as a transactional currency.[12][13] Bitcoin Cash supporters, compared to Bitcoin, were more committed to a medium of exchange function.[14] This push by some to increase the block size met a resistance. Since its inception up to July , Bitcoin users had maintained a common set of rules for the cryptocurrency.[12] Eventually, a group of bitcoin activists,[15] investors, entrepreneurs, developers[12] and largely China-based miners were unhappy with Bitcoin's proposed SegWit improvement plans meant to increase capacity and pushed forward alternative plans for a split which created Bitcoin Cash.[16] Segwit controversially would later enable second layer solutions on bitcoin such as the Lightning Network, and this controversy led to the split that created Bitcoin Cash.[14] The proposed split included a plan to increase the number of transactions its ledger can process by increasing the block size limit to eight megabytes.[12][13]
In June , hardware manufacturer Bitmain, described the would-be hard fork with the increased block size as a "contingency plan", should the bitcoin community decide to fork implementing SegWit. The first implementation of the software was proposed under the name Bitcoin ABC at a conference that month. In July , mining pool ViaBTC proposed the name Bitcoin Cash. The change, called a fork, took effect on 1 August As a result, the bitcoin ledger called the blockchain and the cryptocurrency split in two.[17]
A Hong Kong newspaper likened this to a new version of word processing software saying:[18]
Bitcoin cash is like a new version of Microsoft Word, which generates documents that can no longer be opened via the older versions.
Bryan Kelly, a stock analyst likened it to a software upgrade:[19]
Bitcoin cash is doing a “hard fork” or “effectively a software upgrade”, Kelly said on “Fast Money”. “When you do a software upgrade, everybody usually agrees. But in this particular case, everybody is not agreeing.”
At the time of the software upgrade (also known as a fork) anyone owning bitcoin came into possession of the same number of Bitcoin Cash units.[20][17] The technical difference between Bitcoin Cash and Bitcoin is that Bitcoin Cash allows larger blocks in its blockchain than Bitcoin which, in theory, allows it to process more transactions per second.[21] Bitcoin Cash was the first of the Bitcoin forks, in which software-development teams modified the original Bitcoin computer code and released coins with “Bitcoin" in their names, with "the goal of creating money out of thin air".[22] In relation to Bitcoin it is characterized variously as a spin-off,[5] a strand,[23] a product of a hard fork,[24] an offshoot,[25] a clone,[16] a second version[15] or an altcoin. On 1 August Bitcoin Cash began trading at about $, while bitcoin traded at about $2,[17]
A key difference of opinion between Bitcoin Cash and Bitcoin camps was over the running of nodes. Bitcoin supporters wanted to keep blocks small so that nodes could be operated with less resources, while some Bitcoin Cash supporters find it acceptable that (due to large block sizes), nodes might only be run by universities, private companies and nonprofits.[26]
In Bitcoin Core developer Cory Fields found a bug in the Bitcoin ABC software that would have allowed an attacker to create a block causing a chain split. Fields notified the development team about it, and the bug was fixed.[27]
Controversy
Andreas Antonopoulos, "The Verge"
In there were two factions of Bitcoin supporters: those that supported large blocks and those who preferred small blocks.[21] The Bitcoin Cash faction favors the use of its currency as a medium of exchange for commerce, while the Bitcoin-supporting faction view Bitcoin's primary use as that of a store of value.[21] Bitcoin Cash detractors call the cryptocurrency "Bcash", "Btrash", or "a scam", while its supporters maintain that "it is the pure form of Bitcoin".[21]
Samson Mow of Blockstream pointed to Bitcoin Cash's use of the "Bitcoin" name as a source of animosity between the Bitcoin and Bitcoin Cash camps.[21]Emin Gün Sirer, a professor at Cornell stated that Bitcoin Cash was focused on use and Bitcoin was "enormously" focused on store of value.[21]
Trading and usage
Bitcoin Cash trades on digital currency exchanges including Bitstamp,[29]Coinbase,[30]Gemini,[31]Kraken,[32]Bitfinex, and ShapeShift using the Bitcoin Cash name and the BCH ticker symbol for the cryptocurrency. On 26 March , OKEx removed all Bitcoin Cash trading pairs except for BCH/BTC, BCH/ETH and BCH/USDT due to "inadequate liquidity".[5] As of May&#;[update], daily transaction numbers for Bitcoin Cash are about one-tenth of those of bitcoin.[5] Coinbase listed Bitcoin Cash on December 19, and the coinbase platform experienced price abnormalities that led to an insider trading investigation.[33]
By November the value of Bitcoin Cash, which had been as high as $, had fallen to around $, much of that due to people who had originally held Bitcoin selling off the Bitcoin Cash they received at the hard fork.[11] On 20 December it reached an intraday high of $4, and then fell 88% to $ on 23 August [34]
As of August , Bitcoin Cash payments are supported by payment service providers such as BitPay, Coinify and GoCoin.[35]
Difficulty adjustment algorithm
Both Bitcoin, as well as Bitcoin Cash, use a proof-of-work algorithm to timestamp every new block. The proof of work algorithm used is the same in both cases. It can be described as a partial inversion of a hash function. Additionally, both Bitcoin and Bitcoin Cash target a new block to be generated every ten minutes on average. The time needed to calculate a new block is influenced by a parameter called the mining difficulty. If the total amount of mining power increases, an increase of the mining difficulty can keep the block time roughly constant. Vice versa, if the mining power decreases, a decrease of the mining difficulty can keep the block time roughly constant.[36]
To keep the block generation time equal to ten minutes on average, both Bitcoin and Bitcoin Cash use an algorithm adjusting the mining difficulty parameter. This algorithm is called the difficulty adjustment algorithm (DAA). Originally, both Bitcoin and Bitcoin Cash used the same difficulty adjustment algorithm, adjusting the mining difficulty parameter every blocks. Since 1 August , Bitcoin Cash also used an addition to the DAA, called an Emergency Difficulty Adjustment (EDA) algorithm. EDA was used alongside the original DAA and it was designed to decrease the mining difficulty of Bitcoin Cash by 20%, if the time difference between 6 successive blocks was greater than 12 hours.[36]
EDA adjustments caused instabilities in mining difficulty of the Bitcoin Cash system, resulting in Bitcoin Cash being thousands of blocks ahead of Bitcoin. To address the problem with stability, a change of the Bitcoin Cash DAA was implemented and the EDA canceled. The change took effect on 13 November After the change, the Bitcoin Cash DAA adjusts the mining difficulty after each block. To calculate the difficulty for a new block, the Bitcoin Cash DAA uses a moving window of last blocks.[36]
A group of researchers demonstrated that, as of June , Bitcoin DAA fails to generate new blocks at a constant rate as long as the hash supply is elastic. In contrast to that, the group demonstrated that Bitcoin Cash DAA is stable even when the cryptocurrency price is volatile and the supply of hash power is highly elastic.[37]
split to create Bitcoin SV
On 15 November , a hard fork chain split of Bitcoin Cash occurred between two rival factions called Bitcoin Cash and Bitcoin SV.[38][39] On 15 November Bitcoin Cash traded at about $, and Bitcoin SV traded at about $, down from $ on 14 November for the un-split Bitcoin Cash.[40]
The split originated from what was described as a "civil war" in two competing bitcoin cash camps.[19][41] The first camp, supported by entrepreneur Roger Ver and Jihan Wu of Bitmain, promoted the software entitled Bitcoin ABC (short for Adjustable Blocksize Cap), which would maintain the block size at 32&#;MB.[41] The second camp led by Craig Steven Wright and billionaire Calvin Ayre put forth a competing software version Bitcoin SV, short for "Bitcoin Satoshi Vision", which would increase the block size limit to &#;MB.[38][41]
See also
References
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