Some smart people invented Bitcoin in 2009. In the beginning, there were only a few enthusiasts showing interest in this new currency, but soon people began to realize its potential. Thus, the number of miners and users holding Bitcoin and paying with it started to grow exponentially. On the other hand, Bitcoin cash is also increasing its popularity. Let’s take a look at their advantages and disadvantages over each other: Bitcoin vs Bitcoin Cash.
Bitcoin network can handle 7 transactions per second
Bitcoin in general is a great invention, except of course its big problem that goes unnoticed… The Bitcoin network can only handle 7 transactions per second at most, so it’s very slow. For comparison, Visa can process 24,000 transactions per second. Making bitcoin trading this slow has become a problem for the community to solve. When the calendars showed 2017, it was clear that there was too much to overcome and some reforms had to be done to increase Bitcoin’s scalability.
The sheer number of transactions to handle has divided the Bitcoin community into two groups. One group argued that reducing the amount of data that needs to be verified in each block, the other group argued that the scaling problem should be resolved.
Because neither group gave up, a “hard fork” transaction took place in Bitcoin in August 2017. Thus, a new version of Bitcoin appeared called Bitcoin Cash. Although Bitcoin Cash uses the same code base as Bitcoin, its block capacity has increased to 8 MB. This increasing capacity made it possible to handle about 2 million transactions every day.
Bitcoin
Mining pools and companies representing almost 90 percent of bitcoin computing power voted to include a technology Segwit in July 2017. With this fix, it reduces the amount of data that needs to be validated in each block by removing signature data from the data block that needs to be processed in each transaction and adding it to an expanded block. Signature data is large enough to constitute 65 percent of the data processed in each block, so it is an important technological development. In 2017 and 2018, there was growing talk about doubling the block size from 1 MB to 2 MB. In February 2019, bitcoin surpassed previous records with a block size of 1,305 MB. However, in January 2020, the block size comes back to an average of 1 MB.
Bitcoin Cash
Bitcoin Cash is a cryptocurrency created in 2017 by splitting off the Bitcoin blockchain and is denoted by BCH. With Bitcoin Cash, it is aimed to prevent the limit problem that causes transactions to slow down and to overcome the difficulties in sending and receiving money. When Bitcoin Cash was first launched, users’ accounts were defined as Bitcoin Cash as much as the amount of Bitcoin. Bitcoin Cash has become a faster confirmation system by increasing the capacity of the traded blocks to 8 MB separately from the Bitcoin system. Bitcoin Cash has increased both its block capacity by removing the SegWit protocol in the Bitcoin system. With the advantage of being one of the most traded crypto currencies, it is traded on many stock exchanges.
Difference between Bitcoin and Bitcoin Cash
- Bitcoin Cash, created by separating from the blockchain used by the Bitcoin system, is a new and up-to-date cryptocurrency value.
- While the Bitcoin block limit is limited to 1MB, Bitcoin Cash blocks are 8MB in size.
- Bitcoin uses the SegWit protocol, Bitcoin Cash has removed the SegWit protocol from the system.
- Bitcoin Cash has a faster and cheaper transaction system.
Disadvantages of Bitcoin Cash
There are many mining pools in Bitcoin. Everyone has a say, but nobody is strong enough. In other words, it is almost impossible for a single miner to reach the 51 per cent majority. Bitcoin Cash, on the other hand, is almost centralized. Three mining pools currently handle more than 51 per cent of transactions. This can be a dangerous situation because the future of the currency is heavily dependent on these three mining pools.
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