The very trending issue in the network market nowadays is THE SPLIT. Split in the major cryptocurrency Bitcoin finally took place on Tuesday, 1 August. Though the discussion was going over a year but finally the event has taken place. Bitcoin splits into two when a minority of developers decided over to carry an alternative upgrade proposal. Bitcoin’s blockchain was forked, i.e. instead of starting from zero, a duplicate version was created. Basically, fork creates a duplicate version that shares the same history. So all the past transactions on Bitcoin’s core blockchain have been exactly duplicated on Bitcoin Cash’s new blockchain, with future transactions and balances being totally independent from each other.
On Tuesday, Bitcoin split into Bitcoin and Bitcoin Cash, one of its kind, after a years-long battle in the cryptocurrency community.
The legacy Bitcoin code had a maximum limit of 1 MB of data per block. With time, Bitcoin turned out to the first and still most fastest growing currency. Millions and billions joined the same platform to carry out the trade. But as been said earlier the blocksize started having issues as the capacity hit the “invisible wall”. As a result, some of the users started facing transactional issues. Most of them turned their back on Bitcoin and hence its market share among other cryptocurrencies quickly plummeted from 95% to 40%.
To resolve the issue, developers and miners came over with various solutions in order to avoid the split. But a group of developers decided to choose their way and thus the split took over the rules that should guide Bitcoin’s network.
Bitcoin Cash is new to the market. Price is being artificially inflated because most exchanges aren’t accepting deposits yet. The only Bitcoin cash (BCC) available to trade is the currency that was credited by exchanges after the fork.
Bitcoin Cash might be new to many and may take time to grab a good position. But it resolved the issue as it raises blocksize limit to 8MB, as part of a massive on-chain scaling approach. Consequences of such currency may lead to low fees and fast confirmations over the transactions.
Bitcoin Cash is grabbing a lot of attention for the reasons:
Blocksize Limit Expansion: The users feel more satisfied with the fast confirmations as an outcome of Blocksize expansion. Many more who turned their backs are coming back to the fields.
Transaction Replay Protected: With two chains in the market, BCC transactions exercise a new flag SIGHASH_FORKID, non-standard to the legacy blockchain. SigHash is a new way of signing transactions. Thus preventing BCC transactions from being replayed on the Bitcoin Blockchain and vice versa.
Forked: BCC provides the complete history. It has not been created from scratch. Bitcoin Cash is just another modified cryptocurrency in the market.