As everyone already knows, yesterday August 1, the Bitcoin network was split with the appearance of Bitcoin Cash (BCH). We will talk here about what this means.
What is Bitcoin Cash?
Bitcoin Cash is point-to-point electronic cash for the Internet. It is “totally decentralized, without a central bank and does not require trusted third parties to operate.” Bitcoin Cash is aiming to be a cryptography that focuses on direct and effective transactional capacity between individuals.
In practical terms, Bitcoin’s cash transactions will use a new SIGHASH_FORKID flag, which is not standard for the legacy blockchain, and prevents Bitcoin’s Cash transactions from being replayed in the Bitcoin block chain and vice versa. This means that you should be able to perform transactions safely in both blockchains. But users are warned beforehand to test transactions with a few satoshis first before sending large amounts, and thus avoid some bad time.
Bitcoin Cash will appeal to users who disagree with SegWit. Bitcoin Cash aims to overcome a problem that the community has failed to reach a consensus, namely increasing the block size limit.
Bitcoin Cash will offer a block size greater than 8MB, compared to 1MB Bitcoin.
Already in operational terms, one of the big exchangers, Bitstamp, the first fully licensed bitcoin exchange in the EU, as a safety precaution, deactivated deposits and withdrawals of bitcoin from July 31, 2017 at 23:00 UTC To ensure that all BTC funds stored in Bitstamp remained secure. Commerce in theory was not affected. Deposits and withdrawals would only be restarted when Bitstamp considered it safe and prudent.
Bittrex also announced its support for BCC in recent days. The hardware portfolios Trezor and Ledger also gave their users the opportunity to access Bitcoin Cash, and BCC could be sent from the hardware portfolios to any exchanges supported by BCC, such as Bittrex and Kraken, for bitcoin. Most Bitcoin exchanges in Asia also adopted the position that BCC is an asset of altcoin or new block chain, where Bithumb, BTCChina, Huobi, Korbit and OKCoin support.
We still observe the behavior of this bifurcation, where there is a driving force for both currencies to gain in value until it is clear that one of them may present a higher scaling solution.
We invite you to follow the day by day about the cryptocurrencies, blockchain and bitcoin world at Crypto-economy.