A Short Overview: Bitcoin vs Bitcoin Cash

The heated debate between the community members of the Bitcoin network will definitely go down in history as one of the turning points of the Bitcoin network. The argument was based upon the best way to solve the scalability problem of the Bitcoin network. While some of the community members accepted the Segwit proposal that was presented by Pieter Wuille, others blocked this proposal and this led to the creation of the Bitcoin Cash.

When a disagreement arises within a cryptocurrency community, developers can branch the asset into two separate protocols. This is called a hard fork. Bitcoin cash came into existence through the use of a hard fork and interestingly it was able to steal about 10% of the Bitcoin value. This makes the network worth over $13 billion currently. We will take a look at the difference between the Bitcoin (BTC) and the Bitcoin Cash (BCH).

The Block Size

Let’s start with the block size, which in layman’s terms is simply a composition of recent transactions batched together into a block. While the Bitcoin network has a block size of 1 MB, the Bitcoin Cash network has an 8 MB block size which makes the Bitcoin Cash network arguably faster and more scalable than it’s predecessor Bitcoin. Recently, the community members of the Bitcoin Cash network have proposed an upgrade of the block size to about 32 MB, if this proposed upgrade is done, this would make the Bitcoin Cash network the most scalable cryptocurrency.

This increased block size of the Bitcoin Cash network means that only strong and efficient mining gears are capable of mining on the network.

Their Algorithms

Basically, the Bitcoin and Bitcoin Cash networks make use of the proof of work algorithm, the main difference being that the Bitcoin Cash network was initially running a less difficult algorithm to attract miners to the network. This move although attracted miners but it backfired and the network had to adopt another algorithm called the DAA (Difficulty Adjustment Algorithm). This made the mining process flexible and at the same time adjustable to ensure that predictable block time is created.

Security

The Bitcoin network happens to be a much more secure network than the Bitcoin Cash. This was because certain infrastructures and technologies have been adopted and put in place. Also, the Bitcoin network happens to have about 4 times the nodes on the Bitcoin Cash network, thus making the Bitcoin network a much more distributed network.

Cost

When it comes to the transaction cost, the Bitcoin network charges more for transactions than the Bitcoin Cash network. This gives the Bitcoin Cash a network upper hand as it is not just faster but less expensive.

Also, the Bitcoin Cash network happens to carry out more transactions per second when compared to the Bitcoin network. This means that more people are able to use the Bitcoin Cash network simultaneously than the Bitcoin network.

Although the Bitcoin is of far more value than the Bitcoin Cash, the Bitcoin Cash has experienced massive global adoption because of its scalable, fast and cheap transactions. Another valuable point that should be looked at is that the Bitcoin Cash, unlike the Bitcoin network, has been existence for just a year while the Bitcoin network for over 9 years.


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