In today’s fast-paced digital world, crypto enthusiasts and traders need a reliable and user-friendly cryptocurrency exchange app. KoinBX, a leading cryptocurrency exchange platform, offers a mobile app that allows trading on the go. In this article, we will explore what is Bitcoin Cash and how to buy on the KoinBX crypto exchange app. We will also explore how it simplifies cryptocurrency trading and enhances the overall user experience.
Bitcoin Cash (BCH) is a Peer-to-Peer (P2P) digital currency system that intends to be a global currency with a rapid payment facility, lowest fees, high privacy, and huge block size. As a permissionless, decentralized crypto, BCH requires no trusted third parties.
BCH was created as an alternative to Bitcoin (BTC). In 2017, Bitcoin Cash developers modified the Bitcoin code and released their software version. Then, they created a viable product splitting Bitcoin into two blockchains: BTC and BCH.
Bitcoin Cash is a result of a hard fork in the blockchain due to differences in the community over Bitcoin scaling and the Segregated Witness (SegWit) upgrade. Furthermore, another hard fork divided Bitcoin Cash into two parts, Bitcoin ABC and Bitcoin SV, in 2018.
Small block supporters opposed increasing block size leading to blockchain centralization and vulnerability by making it harder to host full nodes. Large block supporters advocated for a faster solution, concerned that increasing transaction fees could hinder growth.
Founders
Satoshi Nakamoto, an anonymous creator of Bitcoin, published the whitepaper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008. In 2009, the first Bitcoin software went live.
The transaction fees were low and the transactions were reliable for several years. By 2016, with the increase in the popularity of Bitcoin, there is a growth in the number of transactions on its network, leading to slow processing times and higher fees. Bitmain, a manufacturer of mining hardware proposed the hard fork for increasing the block size limit to allow more transactions per block. This went live on August 1, 2017, resulting in the creation of Bitcoin Cash (BCH). It received support from the Bitcoin community.
Since its inception, BCH has experienced its own set of challenges and milestones. One notable event was another hard fork in November 2018, which led to the creation of Bitcoin SV (BSV), a separate crypto. The split was caused by disagreements within the BCH community regarding proposed changes to the protocol. As a result, there is the emergence of two contending implementations — Bitcoin ABC and Bitcoin SV. Bitcoin ABC continues as BCH and Bitcoin SV become their own distinct crypto.
How does BCH work?
Due to the bigger block size, BCH works quicker and charges lower transaction fees while supporting smart contracts and ecosystem apps.
With a limited total supply of 21 million coins, BCH is provably rare and easily spent like physical cash. Transactions are rapid, with fees typically less than a tenth of a cent.
In addition to P2P payments between individuals, BCH can be used to pay participating merchants for goods and services both in-store and online. Low fees enable new micro-transaction markets such as rewarding content creators and app users. BCH also reduces the expenses and settlement times for remittances and cross-border trade. Additional use cases include tokens, simplified smart contracts, and private payments with tools.
How does BCH differ from Bitcoin?
Bitcoin Cash was considered to be the legitimate continuation of Satoshi Nakamoto’s vision of Bitcoin as a P2P electronic cash. All Bitcoin holders at the time of the hard fork automatically became owners of BCH.
From a technical perspective, BCH is similar to the Bitcoin algorithm. The BTC and BCH projects use Proof-of-Work (PoW) consensus framework and validator nodes to verify transactions. The hard cap of both BTC and BCH is 21 million coins.
Unlike BTC, BCH aims to scale for satisfying the growing demands of a global payment system. The block size of BCH was increased from 1 MB to 8 MB during the split.
An increased block size means BCH can now handle significantly more Transactions Per Second (TPS) at low transaction fees, solving the issues of payment delays and high fees experienced by some users on the BTC network. As of 2023, BCH has a block size of 32MB, compared to Bitcoin’s block size of 1 MB.
BENEFITS:
Rapid and Less Expensive Transaction — BCH requires less transaction cost and holds the capability of processing more than 100 transactions per second. Hence, it can be considered the most viable payment platform.
Accessible — Among the thousands of cryptos existing in the market, BCH is considered the most popular crypto and is purchased from the basic crypto exchanges.
Highly Scalable — Larger BCH blocks enable the blockchain to increase its scalability, leading to numerous transactions and lower fees.
Decentralized Money — Investors are often concerned about the centralized nature of the financial system. Hence, they opt for BCH as it offers a decentralized currency system that is not controlled by a single entity.
Future of BCH
When it comes to the future of cryptos, BCH is certainly finding its own space in the crypto market. While BTC has the mindshare, BCH grabs more attention as more traders accept the crypto assets. BCH is a rapid and cheaper network.
Conclusion
BCH is faster and requires lower transaction fees when compared to BTC, but is used less often as daily crypto payments have to be adopted. It is a major belief that better awareness and technological improvements and innovations will pave the way for BCH to serve as a frontrunner in crypto payments.
How to Buy BCH?
Follow the below steps to buy BCH coins,
1. Signup with KoinBX.
2. Fill in the needed details to create an account.
3. Complete your KYC verification process.
4. Add your bank account.
5. Deposit Fiat to your KoinBX account.
6. Click Buy to start buying BCH with INR & BCH with USDT.
To make your BCH trade anywhere, anytime with the great trading experience with KoinBX Android and iOS app.
