What is bitcoin cash?

Why was Bitcoin Cash Created?

Bitcoin Cash was created to bring back the essential qualities of money inherent in the original Bitcoin software. Over the years, these qualities were filtered out of Bitcoin Core and progress was stifled by various people, organizations, and companies involved in Bitcoin protocol development. The result is that Bitcoin Core is currently unusable as money due to increasingly high fees per transactions and transfer times taking hours to days. This is all because of the problems created by Bitcoin Core’s blocks being full.

Basically speaking, “blocks” are groupings of new transactions that are brought to the blockchain. In Bitcoin, transactions are processed block via block. Bitcoin used to be designed to target 6 blocks per hour, or one each ten minutes. Years ago, an synthetic restrict to the size of blocks was delivered to the Bitcoin Core code to prevent a viable attack vector the place a mass variety of transactions should weaken the network. At the time, transactions have been free to make, so an attacker may want to send a massive quantity of transactions between his own wallets, forcing every body else on the community to down load and save large amounts of data. The block dimension restriction was arbitrarily set at 1MB (i.e., the size of storage provided by means of a floppy disk from the mid-1980s). At the time, this was nevertheless thousands of instances higher than the genuine usage of the network demanded. It is clear that the block size restriction was never intended to stifle boom of the network, but in basic terms to shield in opposition to a theoretical attack vector.

When the club (block) is full at 2,500 people (transactions), the bouncer is instructed to form a line and start charging an increasingly high cover charge (transaction fees) for entry. More and more people keep coming to the hottest club in town, and as of today, the situation has become so bad that the line of people waiting outside is approximately 270,000 people long and the average cover charge is as high as $140. You’ve been waiting patiently for hours to get in, but people willing to pay more than you keep jumping to the front of the line and are keeping the club full. Even worse, each person (transaction) is only allowed to bid on their cover charge once. When you first got in line, you thought that paying $20 would be enough to get you in quickly, but now several thousand more people have joined the line and said they would pay more than you. There is nothing you can do but wait until everyone paying more than you gets in and the bouncer gets around to letting you in.

Is Bitcoin Cash Cheaper to Use than Bitcoin Core?

Yes. Because transaction fees in both versions of Bitcoin are measured in satoshis-per-byte (a unit of Bitcoin is divisible to 8 decimal places and the smallest unit is called a “satoshi”) the way you have to accurately measure Bitcoin fees is not in dollars, but in satoshis.

Because Bitcoin Core blocks are always full and there’s a large line up of people, currently, the bouncer is charging more than 900 satoshis per byte for inclusion into a block. At the time of writing, it costs more than $30 to make a single Bitcoin transaction.

By comparison, Bitcoin Cash’s average fee is 19 satoshis per byte. With Bitcoin Cash, you can also set your fees manually as low as 2 satoshis per byte and be included into the next block, because there is plenty of room for everyone who wants to send a transaction.

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