Bitcoin Cash (BCH)

A cryptocurrency originating from a hard fork of Bitcoin on August 1, 2017, increasing the block size limit from 1 MB to 8 MB to enable higher on-chain transaction throughput, faster confirmation times, and lower transaction fees.

What is Bitcoin Cash?

A Bitcoin fork that increased the block size limit to 8 MB as its primary scaling mechanism, designed to increase on-chain transaction capacity and maintain low fees without adopting Segregated Witness (SegWit).

Bitcoin is the first decentralized cryptocurrency, created in 2009 by an individual or group using the pseudonym Satoshi Nakamoto. It operates as a peer-to-peer electronic payment system that enables direct transactions between users without intermediaries such as banks or payment processors.

Bitcoin transactions are secured using the SHA-256 cryptographic algorithm and recorded on a distributed public ledger called a blockchain, maintained across thousands of computers worldwide. New blocks are added approximately every 10 minutes.

Bitcoin Hard Fork (August 2017)

Bitcoin Cash originated from a hard fork of Bitcoin on August 1, 2017. The fork was supported by developers and community members who advocated for a larger block size as the primary on-chain scaling solution.

Increased Block Size (8 MB)

The primary technical change introduced was an increase in the block size limit from 1 MB to 8 MB. This modification allows the network to process a higher volume of transactions per block without relying on second-layer solutions.

Higher Transaction Throughput

The larger block size enables Bitcoin Cash to process more transactions per second compared to Bitcoin, targeting faster confirmation times and the ability to support higher usage volumes on-chain.

Lower Transaction Fees

By increasing on-chain capacity, Bitcoin Cash was designed to maintain low transaction fees even under higher demand , addressing the fee pressure that emerged on Bitcoin as block space became constrained.

No SegWit , On-Chain Scaling

Bitcoin Cash maintains the original economic rules of Bitcoin while implementing larger blocks as its protocol upgrade mechanism, explicitly choosing not to adopt Segregated Witness (SegWit) as implemented by Bitcoin.

Bitcoin SV Fork (November 2018)

In November 2018, a protocol dispute within the Bitcoin Cash community resulted in a further hard fork, creating Bitcoin SV (BSV) as a separate cryptocurrency. The two chains diverged on technical specifications and development direction.

Adoption & Developments

Bitcoin Cash positions itself as a peer-to-peer electronic cash system focused on on-chain scalability, low-cost transactions, and merchant adoption.

Merchant Payment Adoption

Bitcoin Cash targets merchant and retail payment adoption by maintaining low transaction fees and fast confirmation times, positioning itself as a practical medium for everyday purchases in regions with growing cryptocurrency acceptance.

On-Chain Scaling Philosophy

Bitcoin Cash's development philosophy prioritizes on-chain capacity increases as the primary scaling mechanism, in contrast to Bitcoin's approach of using second-layer networks like the Lightning Network for small-value transactions.

Proof of Work Security (SHA-256)

Bitcoin Cash uses the same SHA-256 Proof of Work algorithm as Bitcoin, allowing miners to switch between the two networks. Shared mining infrastructure means BCH can draw on the broader Bitcoin mining ecosystem for security.

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