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Are you new to Bitcoin Cash and don't know what currencies exist and how they work? In this article, we will explain what it is and how it works.
What is Bitcoin Cash?
As Bitcoin becomes more popular, the time it takes to complete a transaction is increasing. Bitcoin was created by an anonymous person or group of people named Satoshi Nakamoto. Because of the reason that bitcoin miners and developers were worried about the future of cryptocurrency, they launched bitcoin cash. It was created to address the transaction latency problem that Bitcoin has already begun to face.
As we mentioned above, the idea of creating bitcoin cash only came about when some miners and developers noticed the delay in bitcoin transactions. This technology was released in 2017. Like BTC, bitcoin cash is used to send and receive money, with the only difference being that transactions with bitcoin cash are faster than bitcoin.
How does Bitcoin Cash work?
The main reason for creating any product is that a problem has been identified and this product offers a solution to it. Bitcoin Cash was created for a reason, but before we talk about how it works, it’s important to have some understanding of the Bitcoin downturn.
At some point, Bitcoin became relatively slow. The blockchain for a block could only be created once every ten minutes because the block size is limited to 1MB. As the number of users on the network increased, the network became more and more congested. We started to experience problems with scaling.
Bitcoin Cash, on the other hand, operates using a larger block size, significantly larger than BTC, to process transactions faster. Transactions are so fast that you can make a purchase quickly with BCH (Bitcoin Cash).
Bitcoin Cash (BCH) mining is a complex process of solving certain mathematical problems that allow miners to control transactions and make networks of blocks from them. It is implemented using a special SHA-256 algorithm. To get Bitcoin Cash without investing fiat money you can use such methods as mining with video cards (the most effective), mining coins with the help of CPU power, and cloud mining. Video card mining is the most productive and efficient. To get even more coins, several modules can be installed on a farm. The equipment pays off quickly, after which you get a good profit. Mining BCH coins with the help of a processor involves less profit, but this method has its advantages such as minimal heat of the system, lower energy costs. If you do not have the opportunity to purchase your own equipment for mining cryptocurrency, you can use an alternative solution – cloud mining. Large companies purchase installations and sell their power to users. It is enough to connect to the system to start mining Bitcoin Cash.
Difference between Bitcoin (BTC) and Bitcoin Cash (BCH)
BCH and BTC have different functions. Let’s list some of the differences between them. The first is that because of the difference in block sizes, transactions in BCH are faster than in BTC. With BTC, a transaction can take several minutes or more. This has resulted in a longer waiting period as more transactions need to be processed without changing the underlying technology that processes them. And the next is that the cost of processing BCH is lower than BTC.
In conclusion, despite the advantages that BCH has over Bitcoin, there are still many people who have yet to master the use of BCH for transactions. It just means that BTC stays on top. Well stay tuned with us for further developments.