What Is Bitcoin Cash?
Bitcoin Cash is a coin that came into existence after a user activated hard fork (UAHF) split the Bitcoin blockchain into two branches. The UAHF was a contingency plan against the user activated soft fork (UASF) that was announced by Bitmain Technologies.
So far, several of the biggest Bitcoin mining pools have stated that there is the possibility that they will direct hashrate towards the Bitcoin Cash chain to mine Bitcoin Cash. This includes Bitmain’s Antpool, BTC.top, Viabtc, and Connect BTC. Bitmain has stated through the company’s blog that, for now, they intend to focus their efforts on segwit2X.
There are a few of big differences between Bitcoin and Bitcoin Cash. Here is a list of just some of the differences:
- Block Size Limit Increase – Bitcoin Cash will have an immediate increase of the block size limit to 8MB.
- Replay and Wipeout Protection – In the instance where two chains persist, Bitcoin Cash will minimize user disruption, and have safe coexistence of the two chains through the use of replay and wipeout protection.
- New Transaction Type – Bitcoin Cash introduces a new transaction type through replay protection, that has additional benefits such as input value signing for improved hardware wallet security, and elimination of the quadratic hashing problem.
The developers of Bitcoin Cash have added a “slow” mining difficulty reduction algorithm if there is not enough hashrate to support the chain. This will allow the chain to exist even without significant hashrate support.
Bitcoin Cash, initially Bitcoin ABC, was set to fork on August 1st 12:20PM UTC. Starting right at Bitcoin Block 47,558 was found around 12:35 PM UTC, Bitcoin miners and Bitcoin Cash miners started looking for a different kind of block, each following its own protocol. This caused the split to occur. The first Bitcoin Cash block was found at 6:15 PM UTC by the Chinese Mining Pool ViaBTC.