Bitcoin experts disclosed that they had mined the world’s first 1GB block which is 1,000 times bigger than the normal size. So this is Bitcoin’s story which is different from Bitcoin Cash.
Since its inception, there have been many speculations revolving around the ability of Bitcoin to scale effectively. It is a cryptocurrency that lies within the computers and within the blockchain as well. It is a kind of ledge-recording technology that has revolutionized the way we conduct transactions. This technology has made the ledgers far more difficult to manipulate for many reasons. The reality of what has transpired is very simple but verified by the majority of the owners, not by an individual factor. Besides, this network is decentralized and it only exists only on computers across the world.
Although the technology has many benefits, there are some drawbacks as well. With each new invention and emergence of latest technology, there are chances for improvements. It is also quite slow when compared to other banks that deal with credit card transaction.
For example one of the prominent credit card companies Visa processes more than 150 million transactions per day which average out to around 1700 transactions per second. Their capability has far surpassed that number of 24,000 transactions per second. On the other note, Bitcoin is quite slow when it comes o number of the transaction. There are just seven transactions per second that are taking place in Bitcoin. Thus there should be average time of 10 minutes to process the transaction. As the network of Bitcoin uses grows, waking times will get longer, because there are more transactions to process without a change in the underlying technology that processes them.
Concerns Related to Bitcoin
As the new technology, Bitcoin is the highlight of many ongoing debates across the world. The financial experts have been concerned with the central problem of scaling and increasing the speed of the transaction verification process. There are two major solutions to this problem. One is to make the amount data that need to be verified in each block smaller which will make the transaction faster and affordable. The second option is to make the blocks of data bigger so that more information can be processed at a time.
The Difference Between Bitcoin and Bitcoin Cash
In July last year, the pools and mining companies presented the 90% Bitcoin computing power to create a technology called as Segregated Witness. This Segregated Witness was called as SegWit2x. The sole role of SegWit2x is that it transformed the amount of data that needs to be verified in each block smaller as compared to the original block. It removes the extra signature data from the block of the data that needs to be processed in each transaction by making it attached to the extended block.
It is estimated that the signature date is holding up accounts for more than 65% data processed in each block. It also doubles the size of a block from one MB to two MB in November 2017. This has opened significant ways to improve Bitcoin’s salability. Besides, in October, the Bitcoin experts disclosed that they had mined the world’s first 1GB block which is 1,000 times bigger than the normal size. So this is Bitcoin story which is far more different from Bitcoin Cash.
What’s the Bitcoin Cash Story?
On the other note, Bitcoin is completely different. Bitcoin cash was started by the Bitcoin developers and miners with the equal concerned with the future of the digital currency. These Bitcoin enthusiasts had their reservations about the early adoption of the segregated witness technology. They thought it as the SegWit2x which did not address the main problem of scalability in a meaningful way. It also did not follow the roadmap initially and outlined by famous developer Satoshi Nakamoto. He was the anonymous person who first proposed the blockchain technology that has emerged from the result of cryptocurrency. In addition to this, the process of incepting the SegWit2x as the road forward was anything but transparent and there were speculations that it should not introduce as undermined and the decentralized currency of the world.
After the inception of SegWit2x, some of the enthusiasts conducted a hard fork which effectively created a new currency named as Bitcoin Cash. It has implemented an increased block size of 8mb which accelerated the transaction verification speed irrespective of the number of miners supporting it. It has an adjustable level of difficulty which ensures that chain’s survival and verification process. This has raised various speculations about the security of the Bitcoin Cash.
The Future of Bitcoin Cash
The rise of Bitcoin Cash has opened various opportunities for the future digital currency. The current situation is very fluid and the market valuation is both constantly volatilizing. It is really going to be difficult to get a clear picture of Bitcoin Cash until it has been running for a while. And the impact of Bitcoin’s segregated witness technology is assessed and the size of Bitcoin blocks is doubled with the passage of time. According to the NYU Stern Professor Aswath Damodaran the future of cryptocurrency as a currency, as opposed to a speculative asset as it is so often treated, depends on cryptocurrency developers thinking of their technology as a “transaction medium and acting accordingly.” Thus, it is clear that these moves seem to be aimed at improving the cryptocurrency as the medium of exchange across the world.
The high level of security is the only aspect which can improve the Bitcoin as the medium of exchange. It has already ensured the security while improving the transaction speed. The most popular cryptocurrency Bitcoin will continue to be highly secure, but its transaction speed will improve is unclear. Once the difficulty of Bitcoin has adjusted, it could have processed in two minutes and 30 seconds. The security of Bitcoin Cash blockchain is still unclear.
The transaction speed is also depending on the miners and the user’s vision for the currency. If the Bitcoin really does undermine the decentralized nature of the network and the democratic probabilities of blockchain technology, people may look for a cryptocurrency as the exciting potential. Thus, Bitcoin Cash emerged from Bitcoin has a lot of hopes and possibilities to rise as the first cryptocurrency in future.