REVIEW

CRYPTO REVIEW Bitcoin Cash

October 25, 2017 |

REVIEW - BITCOIN CASH

What Is Bitcoin Cash?

After two years of stormy discussions on the future of the currency, Bitcoin, the most popular cryptographic currency in the world, has split into two currencies. So, what is the meaning of this split and what are the implications for users?



What is divide?



Division- or fork in English - is a situation where the blockchain, the software that forms the infrastructure of the cryptographic room, created two versions of the same piece that share a common "story". The division may be temporary and may take up to a few hours or as in our case, a regular division and the creation of a new cryptographic currency.



The currency is going well in this moment. Why divide?



As we know, the Blockchain technology on which the Bitcoin is based uses data blocks, which are checked by the various computers on the network, and added to the database of all monetary transactions. However, since the Bitcoin network is limited to a block size of 1 MB, only 7 transactions per second (tps) can be verified. By way of comparison, Visa Worldwide validates about 2,000 transactions per second on average, with a maximum of 56,000 transactions per second. The result is a bottleneck that results in delays in Bitcoin's transactions.



And when we say delay, we hear, for example, a user of Bitco...