- What is Bitcoin Cash?
- Why Bitcoin Cash make a surprise to Market?
- Why Bitcoin Cash Need To Be Concerned?
- What information do I need to know?
- I Thought That Bitcoin Solved the Problem Expanding the Block Size Scale. Why This Thing Happen?
- What are the characteristics of Bitcoin Cash?
- What does this mean with Bitcoin?
What is Bitcoin Cash?
Bitcoin Cash is a Electronic money peer network on the Internet. Bitcoin Cash is completely decentralized, no central bank and third party intervenes.
Emphasis should be placed on the concept of “peer-to-peer electronic money” here. The goal of Bitcoin Cash is to become a kind of Crypto Currency focused solely on transaction performance.
Why Bitcoin Cash make a surprise to Market?
Everyone thinks that splitting occurs only when BIP 148 is activated. In other words, they claim that Bitcoin Cash (and its client Bitcoin ABC) was created to prevent UASF. Bitmain also said that SegWit2x (also known as New York Agreement) would be the best choice
So when BIP 91 (phase 1 of SegWit2x) was activated and locked in front of BIP 148 as scheduled on August 1, most people thought that the probability of the reserve fund UAHF would not be met.
Why Bitcoin Cash Need To Be Concerned?
Because Bitcoin Cash is a permanent Bitcoin version of Bitcoin.
Yes, Bitcoin Cash is a continuation of the Bitcoin Digital Currency Project. It is a branch of the Blockchain Bitcoin ledger, with an upgraded consensus rule that allows it to grow and expand.
This means that if you own Bitcoin (as proven by private key ownership) before the Hard Fork date of 01/08/2017 12:20 UTC, you will receive Bitcoin Cash and Bitcoin in the amount equal to together.
However, if you think Bitcoin Cash has no value, look at the Bitcoin Cash futures contract described below.
What information do I need to know?
First, you should know that many trading floors, including Coinbase, will not accept this event.
“If I own Bitcoin, do I own Bitcoin Cash?
Yes, Bitcoin Cash is a branch of the Blockchain Bitcoin ledger, which means you will receive a Bitcoin Cash equal to the amount of Bitcoin you own before Hard Fork. However, if your Bitcoin is hosted by a third party like a trading platform, you need to contact them about your money”
It should be noted that third party wallets or third party wallet providers may or may not be able to provide Bitcoin Cash. But it seems that third parties will try to do the right thing for their users, but there is no way to be sure they have provided Bitcoin Cash to the end user.
Second, all Hard Forks carry two risks: Wipe Out and Replay Attack. Wipe Out is not a risk, as this is a permanent subdivision (there is a situation where a miner on this chain performs an attack on other miners on the chain, this has never happened.) And Replay Protection is part of Bitcoin Cash as mentioned.
“How to handle repetitive transactions on both old and new Blockchain?
Bitcoin Cash transaction uses the SIGHASH_FORKID flag – this flag does not exist on the old string. This prevents transactions from being repeated on Bitcoin’s Blockchain and vice versa”
Rest assured that when you have complete control over your private key, you can use that private key to safely perform transactions on both strings.
I Thought That Bitcoin Solved the Problem Expanding the Block Size Scale. Why This Thing Happen?
This is a good question. After many years of debate, everyone agreed to lock-in BIP 91 on Thursday 20 July, 2017. Although SegWit is capable of solving the problem of block size, it does not perform in the way that the vast majority are satisfied.
Bitcoin Cash creates attractive for those who do not want SegWit. The fact that SegWit was activated lost a large percentage of users.
“Why need to branch to create Bitcoin Cash?
Old Bitcoin source code limits up to 1MB of data per block, handling about 3 transactions per second. On the technical side, it is easy to tackle this critical mass, but the community has not reached consensus after years of debate. “
What are the characteristics of Bitcoin Cash?
Bitcoin Cash offers 3 new features:
Firstly, a Bitcoin block larger than 8MB.
Second, Replay Protection and Wipe Out ability. The signature of the transaction will be different and the new block must be larger than 1MB.
Third, it is possible to adjust the difficulty of the Bitcoin Proof of Work algorithm every 2016 blocks as seen in Bitcoin.
What does this mean with Bitcoin?
This is a difficult question to answer. Bitcoin Cash does not really mean much, so much more when you ask yourself the following questions:
- Who will dig Bitcoin Cash?
Which side will have larger hash rate when both types of coin use SHA-256 PoW
- What will the exchange rate be?
- What will the transaction volume of the two coin types be?
Hash rate and how will the price correlate?
Will it affect Phase 2 of SegWit2x?
- How does the Omni and CounterParty work on any string?
Unfortunately, the birth of Bitcoin Cash brings more questions than answers. But one thing is for sure: “If you want to maximize your profits, you need to get Bitcoin from a third-party purse on your wallet before August 1.”