Bitcoin Cash, which arose four years ago because of a debate between two organizations over scaling, has evolved dramatically.
Bitcoin Cash has become more mature than ever, supporting thousands of merchants globally and introducing Smartbch, a development that attempts to attach smart contract functions to the system. But there have been setbacks.
On August 1st, 2017, Bitcoin Cash (BCH) was born out of a series of arguments among programmers and Bitcoin influencers over achieving optimal blockchain scaling. Some proponents choose to scale on-chain by expanding the block size, resulting in Bitcoin Cash.
Since then, Bitcoin Cash has evolved into a solid blockchain with a defined upgrade process that attempts to reduce the turmoil involved with upgrades and forks in the past. It is vital because most of the chain’s updates stem from planning, standards, and procedure improvements every six months.
Aside from Binance, Huobi, Upbit, Coinbase, Okex, and even Paypal accept Bitcoin Cash as a payment method. And millions of cryptocurrency users worldwide get it.
Despite some setbacks and being a minor chain, Bitcoin Cash has managed to achieve its primary purpose of offering more economic freedom to people who need it globally. From technological innovations like Schnorr Signatures and a new difficulty algorithm to social initiatives like aiding communities in Venezuela, South Sudan, and Argentina, Bitcoin Cash has it all.
The Evolution of BCH
The Bitcoin Cash community has had an eventful year, with a blockchain split on November 15th, resulting in a new chain, Bitcoin Cash ABC. The event grew out of debates over Bitcoin ABC, the primary node implementation at the time, and a new DAA (Difficulty Adjustment Algorithm).
The community mostly rejected the original chain’s ruleset to help finance development costs. This split led to Bitcoin ABC’s secession from the Bitcoin Cash project, led by Amaury Sechet.
This year another essential project for Bitcoin Cash arose from the funding debate: Flipstarter. Flipstarter, a noncustodial BCH crowdfunding tool, demonstrated the BCH community’s ability to support worthwhile environmental projects on its own. More than a dozen projects have raised over $1 million since August, and the number continues to climb.
BCH had several notable institutional wins
Grayscale has the approval to offer institutional investors shares of its Bitcoin Cash Trust last August. It eases concerns about custody for many interested parties. Cashfusion, a switchable system to hide crypto transactions in the Bitcoin Cash chain, reached a $3.2 billion anonymized milestone.
Bitcoin Cash is also decentralizing finance. Last year, General Protocols secured $3 million from shareholders after unveiling Anyhedge and Detoken. These are the first two decentralized finance (defi) applications built on top of the BCH protocol. Recently, a new sidechain called Smartbch was established to run EVM-compatible content and use Bitcoin Cash as its primary token. It would theoretically make Bitcoin Cash compatible with Ethereum.
During this time, the currency continued to evolve. Devs jointly took over the protocol development work when several nodes joined a new node named Bitcoin Cash Node. On May 15th, 2021, the BCH chain received a successful update. This update added an infinite number of unconfirmed chained transactions. Also, new methods like CHIPs (Cash Improvement Proposals) enhance transparency. These manage what is upgraded and when to minimize future confrontations.
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