Bitcoins are a type of digital currency in which units of currency are generated using encryption techniques. It can be traded for good or services with vendors who accept Bitcoin as payment transactions. Moreover, it is also used to verify the transfer of funds, operating independently in a central bank. ‘
- The Bitcoin came into existence on January, 2009 with the release of the first open source Bitcoin client and the issuance of the first bitcoins.
- The presumed creator, Satoshi Nakamoto integrated many existing as well as new ideas from the cypherpunk community when creating bitcoin.
- A paper was posted to a cryptography mailing list in November, 2008 under the name of Satoshi Nakamoto titled —> BITCOIN: A Peer-to-Peer Electronic Cash System.
- During mid July 2017, companies and mining pools representing roughly 80 to 90% of Bitcoin computing power voted to incorporate a new technology known as a SEGREGATED WITNESS, called SegWit2x.
- The new technology makes the amount of data that needs to be verified in block smaller. By removing signature data from the block of data that is usually used in the processing of each transaction.
- Bitcoin Cash was started by Bitcoin Miners and developers equally concerned with the future of the cryptocurrency. And also its ability to scale effectively.
Bitcoin Cash Objective:
- The old Bitcoin could process only 7 transactions per second of the Bitcoin Network. Transactions take about 10 minute to process.
- And as the network of Bitcoin users grows, waiting time increases or gets longer. Because there are more transactions to process without a change in the underlying technology that processes them.
- Therefore, some miners and developers initiated what is known as a hard fork, effectively creating a new currency. Bitcoin Cash, on the 1st of August, 2017.
- The Bitcoin Cash has helped to increase the block size from 2mb to 8mb, to accelerate the verification process.
- It has also helped in adjusting th level of difficulty to ensure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it.
- A major drawback to this new technology is number of concerns it has raised about the security of Bitcoin Cash.
Content credits : Pravsaran Singh Arora