Since the introduction of bitcoin, the investors of bitcoin have always tried to look for alternative coins or new inventions. Most of the bitcoin miners try finding ways to use bitcoin as an inspiration to start new ventures. This eventually led to most miners trying out new ideas with most of them failing. That was the birth of a separate cryptocurrency known as Bitcoin Cash.
In this article, we are going to talk about how the bitcoin cash was created and try to understand its technology. We will also touch on a few things that have contributed to its success. Moreover, by the end of the article, you will be able to differentiate between the Bitcoin Classic and the Bitcoin Cash since they are two different entities. Sit back and let’s gaze into the world of brilliant minds and latest technology.
Rise of Bitcoin Cash
There are a few limitations to bitcoin that most miners are always weary about. For instance, the scalability of this cryptocurrency. This is because bitcoin could only take a block size of 1 MB by 2010 which slowed down the transaction speed. Therefore, this was a limiting factor of the currency just before it started gaining popularity. The block size limitation was created in the bitcoin system in order to prevent the system from spam attacks at the time when the price of bitcoins was low.
By the end of 2015, bitcoin value had increased therefore the average block size was about 600 bytes. This proved to be quite a challenge since transactions were going to experience delays as more and more block chains reached their full capacity.
Over the years, people came up with a number of different proposals to deal with the situation by increasing the block size. This has been an uphill task because bitcoins are not managed by a centralized government. To reach a consensus, one had to lure the miners and the developers. However, such proposals ended up taking a longer time than expected. The end result was different groups coming together and forming a separate block chain called a fork. A number of forks have been created with none bearing fruits. For example, Bitcoin unlimited and Bitcoin XT. They both failed because they were not able to attract a large audience.
One of the forks managed to get a substantial amount of audience. This was the bitcoin cash which was released in 2017 as a fork of the bitcoin classic. The major difference between the bitcoin classic and the bitcoin cash is that bitcoin cash is able to handle a block size of 8 MB as compared to the normal 1 MB by the bitcoin classic. Additionally, bitcoin cash removes the SegWit (Segregated Witness) which is a code that is created to free up the space in block chains by removing a few parts of the transaction.
The main aim of the bitcoin cash is to increase the speed at which transactions are processed at the same time increase their numbers. The proponents of the bitcoin cash are hopeful that by the increase of the block sizes of bitcoin cash, it will be able to handle transactions the same way Visa and PayPal does. However, most people are worried about the emergence of the bitcoin cash. This is because; the bitcoin cash requires larger computer power as compared to the bitcoins.This will in turn get rid of the small miners. Therefore, the power of the bitcoin cash will be concentrated within a few elite groups of people who are able to afford better and faster equipment.
This is going to be dangerous to the bitcoin cash since the normal consensus required to make changes to bitcoins will now be concentrated to a limited elite group. This group as you can see will have control over the currency and its future. The success of any fork is to survive long enough and be able to attract a huge number of individuals. This will lead to its thrive. If bitcoin cash is able to survive, this will dictate the beginning of a new age where most investors will see an opportunity of creating their own altcoins. Eventually, this will put a lot of pressure on the bitcoin cash as it is doing the same on bitcoin classic.
Well, since scalability has been a big issue for quite some time, most developers have placed their priority on increasing transaction speeds and also increasing the size of their blocks. One of the major reasons for the success of this fork is its ability to prevent one of the biggest problems in forks; replay attack.
How Does Bitcoin Cash Prevent Replay Attack?
A replay attack is when a given transaction is unknowingly repeated. In cases of the block chain, a replay attack is when one transaction happening in a given block chain also happens to be repeated in another different block chain. Let’s say for example you send 10 BTC (bitcoin classic) to Brenda. If the replay attack is to take place, you will find that you also sent 10 BCH (bitcoin cash) even though you didn’t authorize the second transaction.
Bitcoin cash prevents such scenarios by:
- The use of sighash algorithm which is redefined. This algorithm is used when the sighash flag has six-bit set. The transaction therefore will be unable to continue on the chains of non-UAHF since the different algorithms will result to an invalid transaction.
- The use of OP_RETURN which has a defined string as data. This means that any transaction that has cash nodes below 530000 block, will be seen as invalid in the bitcoin cash. Therefore, before that you can transact in the non-UAHF and then later on the UAHF.
In conclusion, with time, more and more traders are accepting the use of the bitcoin cash. In the beginning most people were skeptical about this fork but this is slowly changing. As we all know, the success of any new cryptocurrency is solely based on patience. This might actually be the change most people have been expecting in the bitcoin classic.