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History of The Bitcoin Cash and its Journey

Author on Sunday, September 08, 2019 | No comments

Bitcoin Cash.

History of The Bitcoin Cash

Bitcoin Cash - For many newcomers in the crypto world, cryptocurrencies are quite confusing because there are currently more than 2,100 coins and tokens in circulation, both original and derivative coins. Bitcoin itself which incidentally is the first cryptocurrency already has a wide variety of variations, including Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, and Bitcoin Private. From these variations, BTC biggest competitor is Bitcoin Cash (BCH).

Definition of Bitcoin Cash

The definition of the official Bitcoin Cash website says:
Bitcoin Cash is peer-to-peer electronic cash for the Internet. Fully decentralized, does not involve (the role of) the central bank and does not require a third party to operate.
The emphasis on the "peer-to-peer electronic cash" section is done because the main benefits of Bitcoin Cash are solely focused on the ability to carry out more transactions that are free of network delay constraints. Bitcoin Cash does offer a way to adjust the difficulty level of work faster than the normal difficulty adjustment interval on Bitcoin.

Bitcoin Cash (BCH)

Created Because Bitcoin Transactions Are Too Expensive

Bitcoin Cash (BCH) is the result of Hardfork Bitcoin which aims to solve scalability problems through the use of larger blocks. Constraints related to scalability in Bitcoin arise when the number of BTC transactions which is rapidly increasing starts to fill the network. This causes the Bitcoin network to be slower and the cost of conducting transactions even more expensive than before. At that time, the cost per transaction on the Bitcoin network reached more than $ 5, regardless of how much BTC was traded.

To overcome this, there are two options which are then debated by the developers; increase the size of Bitcoin blocks or second-tier solutions like Lightning Network. When both parties cannot reach a compromise, a dispute occurs and leads to the creation of a new coin which they consider more perfect, namely Bitcoin Cash.

Supported by Roger Ver, mining giant Jihan Wu, crypto industry leaders, and other experts, Bitcoin Cash was made after hard forking was quite difficult on the Bitcoin Blockchain, by implementing a block size that increased to 8MB. The aim is to overcome transaction bottlenecks and confirm faster transactions into each block.

Larger blocks allow more transactions to occur within a block. However, this is accompanied by a worrying weakness. Those who are still in favor of the BTC argue that the larger blocks will ultimately lead to the centralization of mining.

On the other hand, supporters of BCH argue that through Moore's Law-based technology that is implemented, mining crypto Bitcoin Cash will not be centralized even though it allows the application of larger blocks.

Difference between Bitcoin Cash and Bitcoin

Bitcoin Cash (BCH) at a glance is similar to Bitcoin, but basically has some very striking differences:
  • The block size is 8MB.
  • Will not have Segwit.
  • It will not have the acceleration feature at an additional cost.
  • Has replay and wipeout protection.

As such, Bitcoin (BTC) and Bitcoin Cash (BCH) are two different and independent currencies. Bitcoin Cash may not be sent to Bitcoin addresses, and vice versa.

Anti Replay Attack

One of the best features of Bitcoin Cash is how it is able to withstand one of the biggest problems facing any cryptocurrency after Hardfork, the replay attack.

What is a replay attack? Replay attacks are repetitive data transmissions. This kind of transmission takes transactions that occur on one Blockchain and repeats them on another Blockchain. Thus, a replay attack is able to issue or use the same coin more than once, and this can totally damage the Blockchain network due to supply disruptions.

Bitcoin Cash can protect itself from replays because it uses a redefined sig hash algorithm. This algorithm is only used when the sig hash flag has 6 sets of bits. In this case, the use of OP_RETURN output which has a unique string as additional data is able to ensure the security of Bitcoin Cash. Any transaction that contains a unique string will be considered invalid by the Bitcoin Cash node up to the 530,000th block. Basically, before the block appears, you can divide coins by transacting on the non-UAHF chain first with the OP_RETURN output, and then transacting on the second UAHF chain.

The Bitcoin Cash Hash War

Recently, there was a war that occurred in the Bitcoin Cash community and was nicknamed the Hash War. The Hash War is basically a civil war between two competing factions in the Bitcoin Cash community:
  • Bitcoin ABC (Adjustable Blocksize Cap): is led by Roger Ver and Bitmain's CEO, Jihan Wu.
  • Bitcoin SV (Satoshi's Vision): is the party chaired by Craig Wright and billionaire Calvin Ayre and the owner of CoinGeek.

The two Bitcoin Cash factions above used the power of the Hash to mine the longest chain. Whoever has the longest and more efficient chain, will be the dominant Bitcoin cash chain. According to coin.dance, 71.8% of the community supports Bitcoin ABC, while Bitcoin SV only holds 28.2%.

Conclusion

There are many strong supporters of Bitcoin Cash who believe that on-chain scaling is the main solution to the current scalability problem. Although it hasn't succeeded in overtaking the original Bitcoin chain in terms of popularity, trust in Bitcoin Cash has not diminished.

While many people deride Bitcoin Cash, there are arguments that argue that testing an on-chain scaling solution is a good test for all cryptocurrencies. If it refers to the development of faster adoption of cryptocurrencies, then it does need Blockchain space that is large enough to prevent network slowdown problems.

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