What is Bitcoin Cash (BCH) and how does it work?
Bitcoin Cash (BCH) is arguably the most famous hard fork of Bitcoin, claiming to be a more “true” version of Bitcoin itself. Its goal is to become a genuine digital currency, focusing on faster transactions, lower fees, and better scalability, using of course blockchain technology.
Bitcoin Cash is a payment network and an altcoin cryptocurrency whose main transaction unit is the BCH token. It was created in 2017, following the long-standing dispute among Bitcoin community members on how to introduce changes to the original technology to accelerate transactions and reduce the cost in fees. In addition to this, both miners and developers from the BCH faction have expressed concerns about Bitcoin’s real potential to scale effectively with a growing number of users.
The inability to resolve these issues created a bitter rivalry between two factions: one in favor of intervening on Bitcoin’s original code to increase the block size limit and make it easier to manage a growing number of transactions, and the other that wanted to keep things as they were. The division caused the hard fork, and the “reformist” faction created Bitcoin Cash, a peer-to-peer (P2P) electronic cash solution designed to address the alleged shortcomings of the parent platform Bitcoin.
What is the purpose of Bitcoin Cash (BCH)?
As can be seen from the lack of a true White Paper, the Bitcoin Cash BCH platform adheres to the original goals set by the Bitcoin platform from which it originates. To Satoshi Nakamoto’s original work, BCH adds its own technological touch to achieve these goals.
For Bitcoin Cash, achieving the goal of “electronic cash” is indispensable to improving transaction speed. The creation of a true “digital currency” justifies any technological intervention on Bitcoin’s code to make it a daily payment tool, even suitable for paying for a beer and a kebab. For this reason, transaction times with Bitcoin Cash had to be reduced compared to those of Bitcoin. This highlights the change in perspective regarding the purpose of BCH compared to BTC, with the Bitcoin Cash faction favoring the use of its cryptocurrency as a daily exchange medium rather than primarily as a platform for accumulating value, that is, as a form of investment.
The Bitcoin Cash team has increased the original Bitcoin block size limit from 1MB to 8MB in order to speed up the verification process and provide adjustable calculation complexity levels. This increase in limit was supposed to allow Bitcoin Cash to offer performance levels equivalent to about two million transactions processed per day.
Is Bitcoin Cash an accessible platform for everyone?
Bitcoin Cash presents itself as a more accessible platform than its older rival, as its supporters believe that at some point the Bitcoin environment had become too prohibitive for newcomers.
Today, Bitcoin Cash boasts of allowing its users to send money at transaction fees described as more acceptable than Bitcoin and other cryptocurrencies, as BCH wants to “subsidize” transactions using large blocks. At the same time, lower fees should help both merchants and regular users promote global adoption of BCH in general.
Finally, the increase in block sizes should theoretically allow for higher transactions per block, thus benefiting miners with higher fees for block extraction.
Plans for the future
The four main areas where the Bitcoin Cash community and developers see room for improvement and are focusing their efforts on are: scalability, usability, extensibility, and security.
Changes to the protocol are expected to support mass parallelization and a higher level of performance in transaction processing. Payment with BCH should be instant and secure, with the goal of ensuring transaction completion within three seconds. Bitcoin Cash also plans to implement an extensible protocol, which would make future updates less disruptive to daily operations. There are some proposals to make Bitcoin Cash more secure by coupling it with the Avalanche protocol.
The use of Bitcoin Cash (BCH) in online casinos
All the best crypto casinos we review also accept Bitcoin Cash BCH and players are very keen on exploiting the advantages these alternative payment methods bring. Thanks to the use of this cryptocurrency, gaming is allowed and you can also take advantage of fantastic welcome bonuses for new users. We also suggest using it because the fees are cheaper and faster than Bitcoin BTC.