Bitcoin vs Bitcoin Cash is a battle that has been raging for over a year now. What was once a community of one — Bitcoin — split into two via a hard fork in The debates surrounding these coins often get heated and tribal.
This article will explore what led to such division and the key differences between Bitcoin and Bitcoin Cash. How did we get here? Bitcoin was set up to handle block sizes of 1MB. As more and more people use the network, these block sizes can fill up the memory pool, causing transactions to be delayed.
To increase the speed of transactions, people could choose to pay a more expensive fee to fast-track their transaction. This can mean that Bitcoin transactions can become expensive relative to what they used to be. Solutions to this issue for Bitcoin split into two camps. One was focused on an off-chain second-layer solution. This became known as the Lightning Network.
The other solution was on-chain, through an increase in the block size. Debates, discussions, and arguments raged between the community about the best path to follow. A solution was supposed to have been found in the New York Agreement at Consensus in The New York Agreement was signed by 50 companies who agreed to introduce SegWit, a small scaling solution that also allowed for the Lightning Network and a doubling of block size to 2MB.
This became known as SegWit 2X. A block size increase had to be incorporated through a hard fork. Hard forks can be extremely risky to the survival of the network. However, the bigger argument against a bigger block size is the fear of losing decentralisation.
Larger blocks can make full nodes more expensive and harder to operate, which means that centralised entities can gain more power over the network. This leads to a lot of trust being placed within these centralised entities.
If a single miner controls too much of the hash rate, then the whole network can be figuratively placed under their thumb. For many Bitcoin Cash supporters, the Lightning Network is a complicated and convoluted solution that is entirely unnecessary. Another key criticism that comes from Bitcoin Cash supporters is that the Lightning Network will never work and leads to more centralisation. Lightning Network supporters have often said that the technology is around two years away and there is still much work to be done.
Clearly, the biggest difference between the two is the way they plan to scale in the future. Bitcoin has taken the approach of a second-layer solution and Bitcoin Cash has chosen to increase the block size. This has led to a split in the development teams as well. Bitcoin is supported by Bitcoin Core, a group of unpaid developers who throughout the years have consistently made improvements to the underlying code.
There is plenty of bad blood between the two camps, with smears and arguments being thrown about constantly. It is unlikely that either will ever break bread with each other again. On the other side, many of the Bitcoin Cash camp have claimed that Bitcoin is under the rule of Blockstream. There is a conspiracy theory that Blockstream is in the pockets of major banks and organisations who want to see it fail. For new people entering the cryptocurrency industry, it can be confusing to see why there are now multiple versions of Bitcoin.
This confusion is increased when trying to analyse the differences between them. Simply put, Bitcoin and Bitcoin Cash both have different ideas on how to make Bitcoin usable for increased traffic. Bitcoin has chosen a second-layer solution in the Lightning Network, and Bitcoin Cash has chosen a block size increase. Time will tell who is right.
No matching results for ''. Tip: Try a valid symbol or a specific company name for relevant results. Finance Home. Markets open in 5 hrs 23 mins. Ross Chalmers. Coin Rivet April 22, How was it resolved? Why are people against increasing the block size? Arguments against the Lightning Network For many Bitcoin Cash supporters, the Lightning Network is a complicated and convoluted solution that is entirely unnecessary.
Key differences between Bitcoin vs Bitcoin Cash Clearly, the biggest difference between the two is the way they plan to scale in the future. Bad blood There is plenty of bad blood between the two camps, with smears and arguments being thrown about constantly. Story continues. Bitcoin vs Bitcoin Cash: Conclusion For new people entering the cryptocurrency industry, it can be confusing to see why there are now multiple versions of Bitcoin. Recently Viewed Your list is empty.
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How is Bitcoin Cash different than Bitcoin?
Bitcoin Cash was launched in Augustcreated by a group of Bitcoin miners, that were opposing to the implementation of SegWit. Both cryptocurrencies are open source, using the same Proof-of-Work algorithm SHA and have the same scarcity 21 million coins will ever be created. Bitcoin Cash endeavors to be used as a means of micropayments currency, while its predecessor Bitcoin, is treated more as a value storage. The core difference between the two cryptocurrencies is scalability. Bitcoin consists of 1Mb size blocks, that can fit up to seven transactions and its growth, made the transactions in the Blockchain slow, turning Bitcoin into an inconvenient payment method.
Like pancakes and waffles, these two cryptocurrencies share many ingredients but are different. Bitcoin Cash comes from the same mill as Bitcoin. They share the same white paper, the same supply, same mining algorithm and even have the same reward system. Both Bitcoin and Bitcoin Cash aim to be a worldwide accepted digital currency, but there are some important technical differences as both communities have differing views on their solution to scalability. Although Bitcoin and Bitcoin Cash may share the same mining algorithm, they do have a different adjustable level of mining difficulty. The Bitcoin BTC community strongly prioritise being censorship-resistant, decentralised, permissionless, and trustless. Price charts Bitcoin price Ethereum price Bitcoin Cash price.