What is Bitcoin Cash, a virtual currency? Thorough explanation of features and usage
Bitcoin Cash is a virtual currency created by hard forking (splitting) from Bitcoin. If Bitcoin Cash is a new model, it is easy to imagine that Bitcoin is an old model.
Bitcoin Cash is a virtual currency created by being split, so Bitcoin still exists, but they are not compatible and Bitcoin Cash is used instead of Bitcoin Cash. On the other hand, the technologies used for the two virtual currencies are basically the same. So why did we need to split into two? It is said that the relationships between Bitcoin developers and users who have Bitcoin have a great influence on this.
Why was Bitcoin Cash (BCH) born?
How was Bitcoin Cash born? One of the updates that led to the birth of Bitcoin Cash is the reduction of the time required for money transfer transactions. Bitcoin is block chains are operated by using a technology called, there is a cause that led to the bit coin cache is born in this block chain.
Mechanism of the blockchain that caused it
The blockchain is not managed by one server at a time, but is managed as a P2P network in which participants of the Bitcoin network manage it in a distributed manner. By adopting this management method, Bitcoin is not a centralized type where a specific group or individual manages and operates centrally, but a decentralized type that does not require a group that manages or operates. It is possible.
When a virtual currency transaction is performed on the blockchain, which is a mechanism that supports the features of Bitcoin, work to confirm (approve) whether the transaction is really correct is performed. The transaction data of virtual currency is encrypted by a certain formula, and it is a confirmation work to decrypt the encryption. The work of deciphering is done by applying the appropriate numbers to the formula used for encryption using the computing power of the personal computer. Check the work to solve this cipher is mining is called; the person performing the mining minor is called. If mining is successful, the miner will be rewarded with newly issued Bitcoin.
By deciphering, the data that has been confirmed to be the correct transaction data will be collected and grouped together. Collected transaction data is called a block, and the formed blocks are linked together with the past blocks like a chain. Bitcoin creates a block about every 10 minutes, but the amount of transaction data that can be stored in one block (block size) is fixed, and if there is a lot of transaction data, the portion that did not fit in the block will be in order. For this reason, due to the increase in the amount of Bitcoin transactions, the transaction data waiting to be queued also increased, and as a result, there was a jam of remittances that took a long time for transactions.
Advantages and disadvantages of Bitcoin Cash (BCH)
Advantages of Bitcoin Cash (BCH)
Bitcoin Cash is a relatively new cryptocurrency, and apart from the remittance speed and remittance cost, Bitcoin Cash is not much different from Bitcoin yet. With the aim of being used by many users in 2017 when it was born, Bitcoin Cash was granted to users who own Bitcoin in the same number as Bitcoin. Therefore, it has more trading partners and more liquidity than many virtual currencies. In other words, it has the advantage that it is suitable for exchange and trading.
Disadvantages of Bitcoin Cash (BCH)
Bitcoin Cash is a relatively new virtual currency, and there are not many services and stores available. Although it is a virtual currency that is hard forked from Bitcoin, Bitcoin Cash cannot be used in places where you can make payments with Bitcoin. From a speculative perspective, Bitcoin Cash is a virtual currency that was created to solve the practical issues of Bitcoin, so if the number of situations where it can be used in real life increases, the price will rise. However, there are other virtual currencies created aiming to solve the problems of Bitcoin besides Bitcoin Cash, so it can be said that there is a possibility that the price increase will be higher than other virtual currencies. Click on btc loophole official site to know more.
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