The majority of cryptocurrency enthusiasts may believe that both Bitcoin and Bitcoin Cash are the same cryptocurrencies. However, both have contrasting features an are highly dissimilar from each other. In this post, let’s get to find out what is the difference between Bitcoin and Bitcoin Cash.
The Difference Between Bitcoin and Bitcoin Cash
Before we move on with explaining the difference between Bitcoin and Bitcoin Cash, we must understand what made Bitcoin undergo a hard fork to create a new cryptocurrency known as Bitcoin Cash.
The Shared History
Since Bitcoin came into being, there have been concerns surrounding its ability to scale effectively. We all know that Bitcoin is a decentralized cryptocurrency existing within the blockchain system. The major problem with Bitcoin’s technology is that it’s really slow and lethargic, especially when compared to the banks and financial institutions dealing with financial transactions.
Bitcoin’s network can process only seven transactions per second compared to a Visa that can process up to 1700 transactions per second. With time, the Bitcoin network is bound to expand, making the waiting times increase as there are abundant of transactions that need to be processed without any change in the underlying technology in the Bitcoin’s current network.
The main problem of scaling and increasing the speed of the transaction verification process has been troubling since Bitcoin’s inception. Two opposing parties came up with two different solutions: one party wanted to implement Segregated Witness (SegWit) upgrade in order to compress transaction data, so more transactions could fit in each block and the other party wanted to make the blocks bigger in size so that more information could be processed at one time.
Despite their aims being similar, neither of the party was ready to compromise on how to reach the goal. Eventually, in July 2017, Bitcoin underwent a hard fork, resulting in Bitcoin Cash which exists on a blockchain supporting the miners who wanted larger blocks to hold more data.
The Major Differences
Even though there is very little difference between the two cryptocurrencies, still we’d like to explain them to you. Bitcoin Cash will tend to have lower transaction fees compared to Bitcoin. However, since it doesn’t have much acceptance in the crypto community as yet, there are only a few wallets and exchanges that support Bitcoin Cash. On the other hand, every other cryptocurrency exchange and wallet is supporting Bitcoin.
Speaking of Bitcoin, it offers greater stability and security compared to Bitcoin Cash and comes with more mining support and a bigger infrastructure behind it. Currently, Bitcoin has about 4.5x more full nodes compared to Bitcoin Cash and thus, it has a more distributed network.
However, the major tradeoff has to be time. Transactions tend to take much longer time to process and validate in the Bitcoin network and also have greater transaction fees but on the other hand, Bitcoin Cash takes less time to confirm the transactions and also charge fewer fees.