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Another solution is to make the process of verifying a transaction, i. There are two parts of a Bitcoin transaction: the input and the output though there can be multiple of each. The input and output represent data about the sender and the receiver, respectively. At a conference in , Bitcoin developer Pieter Wuille suggested that that the Bitcoin network separate the signature from the input and shift it to the end of the transaction.
This process is called Segregated Witness. It theoretically increases the size of Bitcoin blocks from 1 MB to 4 MB by redistributing transaction data. After August , transactions looked a little different. Not everyone agreed with SegWit—a Bitcoin soft fork. Specifically, they wanted Bitcoin blocks to be 8 MB. By comparison, a soft fork like SegWit was still compatible with the older blockchain.
Bitcoin mining pool ViaBTC created the first 1. The old Bitcoin network did not accept it. Thus Bitcoin hard forked into Bitcoin vs Bitcoin Cash. Though originating from the same blockchain, Bitcoin and Bitcoin Cash are ideologically distinct. Bitcoin Cash came from the belief that Bitcoin should be used like cash. By comparison, Bitcoin can function as an investment, though it can also be a means of exchange.
For Bitcoin Cash to function more like cash than Bitcoin, its network needed to validate more transactions quickly. This meant bigger blockchain blocks and easier mining work. As noted in the Bitcoin vs Bitcoin Cash table above, this led to some key distinctions:.
In , Bitcoin Cash further increased the max block size to 32 MB. However, this does not mean that the average Bitcoin Cash block needs to be bigger. Though the network allows for the creation of bigger blocks, the Bitcoin Cash network does not have enough demand to merit anything close to the max block size. The bigger the block, the more computational power is needed to add it to the blockchain.
This is because there are more Bitcoin miners than Bitcoin Cash miners. This means that there is a lower bar to entry when it comes to Bitcoin vs Bitcoin Cash mining. Though there is speculation that some Bitcoin mining pools secretly own others, no single mining pool owns close to half of Bitcoin mining today. Bitcoin had , active accounts in the past 24 hours and averaged 9, transactions per hour.
Bitcoin has a much higher market cap, is used by many people, and is mined much more, though they came from the same original blockchain. What makes Bitcoin Cash different from Bitcoin? Keep in mind that cryptocurrency mining does not directly create value. Mining puts more currency into circulation. Therefore, it technically devalues a currency.
However, when Bitcoin miners receive Bitcoin as a reward for creating blocks, they can put it back into the system. In other words, more mining can mean more engagement with a currency. Keep in mind that Bitcoin Cash is only a little over a year old. Big Bitcoin blocks encourage large, powerful mining pools.
Not only would this mean that a single organization has control over the Bitcoin Cash network, but it would be easy for hacks to take down the entire network. Fellow developer Sondre Bjellas tweeted back with this visualization of just how centralized Bitcoin Cash could be:. The blue and the grey represent Alibaba-controlled nodes. These altcoins took the obvious step of increasing their blocksize limit, thus enabling the processing of more transactions per block and so easing fee pressures.
Many wondered why Bitcoin refused to follow suit, as the fee situation was causing disruption and uncertainty for many users. The fact is that the Bitcoin developers and community had reached consensus around an entirely different approach to scaling.
Instead of increasing blocksize, they would instead decrease the size of transactions! That way, more transactions could fit into a block, for an effective blocksize increase without any hardfork read: backwards-incompatible code change required. As an added bonus, SegWit also made it far easier to implement the Lightning Network and other improvements , thus enabling cheap and rapid low-value transactions, greater privacy, and other benefits which are still in the future.
However, SegWit was also new, complex, and a bit scary. Many miners were against it; the dominant miner and ASIC manufacturer at the time, Bitmain, hated it for economic reasons related to their formerly-secret mining advantage. SegWit would also take time to roll out to users, and in the meantime, low-value transactions were unaffordable.
Thus Bitcoin Cash was launched around the same time as the SegWit upgrade, as an immediate and direct solution to the block size problem. There was no need to wait for unproven code changes and the biggest miner was backing them up! Indeed, the Bitcoin community had to come together to force through SegWit adoption against the wishes of most miners, thus breaking the multiyear scaling deadlock.
Bitcoin and Bitcoin Cash represent different approaches to solving the same scaling problem. Ideological differences aside, here are the differences which will probably have the most impact for average users. For this reason, anyone who sends a lot of low-value transactions with a time constraint may find it preferable to buy BCH or any other major altcoin instead of Bitcoin.
Lightning looks set to become the industry standard for transaction speed and economy. It must also be said that BCH is harder to spend, as it enjoys far less adoption than Bitcoin. While most major exchanges and several payment services support BCH, there are way fewer BCH options when it comes to buying goods or services. Bitcoin has the advantage of time, having had seven or so years more to build up its user base and economy.
Another important difference between Bitcoin and BCH is the relative security of their blockchains. While both coins use the same algorithm SHA for mining, meaning that the same ASIC mining hardware can be dedicated to either coin, Bitcoin has substantially more mining power dedicated towards its chain. In other words, Bitcoin is a lot more secure perhaps 50 times or more? That Bitcoin mining power could be easily switched over to BCH to either support or attack it perhaps serves as a caution to both coins against reckless actions.
Obviously, Bitcoin and BCH are priced very differently. As an outsider, it might be hard to understand this conflict. After all, both communities share many principles. As with religious schisms however, the small differences tend to outweigh the commonalities. If you want to branch out, try buying BCH. One important thing to remember is that BTC and BCH have different blockchains, and therefore will require different wallet addresses.
If you want to buy Bitcoin BTC , knowing how much it costs is a must. Checking the Bitcoin price is as easy as breathing, and something many. Understanding Bitcoin BTC vs.
В чем разница между хард-форком и софт-форком? История; История Bitcoin (BTC); История Bitcoin Cash (BCH); История. Bitcoin Cash — криптовалюта, форк биткойна, отделившийся от него. Разветвление от основной ветви произошло 1 августа года. В ноябре года произошло. года от сети биткоин (BTC) отделилась новая криптовалюта Bitcoin Cash/Bcash (BCH). Когда часть крупной компании становится.