Bitcoin Cash (BCH) functions as a peer-to-peer electronic cash system, aspiring to establish itself as a robust global currency featuring rapid payments, minimal fees, enhanced privacy, and a larger block size. As a decentralized and permissionless cryptocurrency, Bitcoin Cash operates without the need for trusted third parties.
Emerging as an alternative to the original and highly valued
Bitcoin (
BTC), Bitcoin Cash came into existence in 2017 when its developers modified the BTC code. This modification led to the release of a distinct software version, creating a fully competitive product that resulted in the bifurcation of Bitcoin into two separate blockchains: Bitcoin and Bitcoin Cash. The emergence of Bitcoin Cash stemmed from a hard fork in the blockchain, prompted by disagreements within the community regarding Bitcoin's scaling and the SegWit upgrade. Additionally, another hard fork in the fall of 2018 resulted in the division of Bitcoin Cash into two entities: Bitcoin ABC and Bitcoin SV.
The scaling debate at the core of these developments involved two opposing factions. Supporters of small blocks resisted increasing the block size, expressing concerns about potential blockchain centralization and vulnerability, as it might become more challenging to host full nodes. Conversely, advocates for large blocks sought a swifter solution, apprehensive that escalating transaction fees could impede overall growth.
