Is Bitcoin Cash actually Bitcoin's sibling network?
Bitcoin Cash (BCH) is a cryptocurrency that was originally developed from Bitcoin. Bitcoin Cash is a result of splitting the network and creating its own blockchain (Hard Fork), separating itself from Bitcoin, which happened in 2017 on block no. 478,558. The reason for the Hard Fork originated from the rising fees in Bitcoin’s network, which was unsolvable by its nodes. As a result, it developed a desire to separate from the original Bitcoin network within the community, while also increasing the block size to accommodate more transactions.
Currently, Bitcoin can handle only 7 transactions per second due to the block size that is limited to 1 MB per block, while Bitcoin Cash can increase the block size to 8 MB to 32 MB, which allows more transactions per block to be processed.
As same as Bitcoin, Bitcoin Cash’s supply is limited to a maximum of 21 million coins, and has a Proof-of-Work consensus algorithm. In addition, Bitcoin Cash also has Halving events like Bitcoin which result in reducing the block reward once every 4 years.
Pros of Bitcoin Cash
1. Transaction speed
As mentioned above, Bitcoin Cash solved the problem regarding the limited block size, further speeding up the transaction verification process. By increasing the block capacity up to 32 MB, Bitcoin Cash can handle a much larger set of transactions.
2. Lower Fees
Due to the fact that Bitcoin Cash has increased its efficiency of supporting transactions, the process of handling will not be as crowded as Bitcoin, which resulted in lower fees.