<h3><strong>What is Bitcoin Cash (BCH)?</strong></h3><p>Bitcoin Cash (BCH) is a peer-to-peer electronic cash system created in August 2017 as a hard fork of Bitcoin. It was developed to provide faster transaction speeds and lower fees, making it suitable for everyday transactions.</p><h3><strong>How does Bitcoin Cash work?</strong></h3><ul><li><strong>Underlying Technology:</strong> Operates on a blockchain similar to Bitcoin with an increased block size, allowing more transactions per block.</li><li><strong>Consensus Mechanism:</strong> Utilises Proof of Work (PoW), where miners validate transactions using the SHA-256 algorithm.</li><li><strong>Smart Contracts:</strong> Focuses on simple transactions rather than complex smart contract functionality.</li></ul><h3><strong>What are the potential use cases for Bitcoin Cash?</strong></h3><ul><li><strong>Everyday Transactions:</strong> Ideal for purchasing goods and services due to low fees and fast confirmations.</li><li><strong>Microtransactions:</strong> Enables tipping and small payments cost-effectively.</li><li><strong>E-commerce Integration:</strong> Accepted by various payment processors for online and in-store payments.</li></ul><h3><strong>What is the history of Bitcoin Cash?</strong></h3><ul><li><strong>2017:</strong> Created through a hard fork from Bitcoin, introducing an 8MB block size limit.</li><li><strong>2018:</strong> Block size increased to 32MB, and Bitcoin SV (BSV) split from BCH.</li><li><strong>2020:</strong> Implementation of privacy features like CashShuffle and CashFusion.</li></ul><p><br></p>

What makes BCH important?

### What is Bitcoin Cash?

Bitcoin Cash (BCH) is a cryptocurrency created as a result of a hard fork from Bitcoin in 2017. It aims to serve as a peer-to-peer electronic cash system with a focus on scalability, efficiency, and lower fees. Bitcoin Cash was designed to provide faster transaction processing and improved decentralised cash system utility by increasing the block size compared to Bitcoin.

### How does Bitcoin Cash work?

Bitcoin Cash operates on a blockchain, employing a Proof-of-Work (PoW) consensus mechanism similar to Bitcoin. It uses the SHA-256 hashing algorithm and has a larger block size of up to 32 MB, which allows for more transactions to be processed per block. Bitcoin Cash also supports smart contracts through the Simple Ledger Protocol (SLP) and has implemented the Adaptive Block Limit Algorithm (ABLA) to adjust block sizes dynamically.

### What are the potential use cases for Bitcoin Cash?

Bitcoin Cash can be used in various scenarios due to its rapid transaction speeds and low costs. It serves as a peer-to-peer electronic cash system and is suitable for everyday transactions, remittances, crowdfunding, decentralised finance (DeFi), and IoT integration. Additionally, it facilitates tokenization and asset management, cross-border trade, and supports DeFi applications and smart contracts. Its real-world applications extend to online microtransactions, international payments, and privacy enhancement.

### What is the history of Bitcoin Cash?

Bitcoin Cash was created in August 2017 following disagreements within the Bitcoin community over scalability and block size limits. The founding team included figures like Haipo Yang and Roger Ver. Key milestones in its history include increasing the block size limit to 32 MB, developing the SLP for token creation, and introducing privacy tools like CashFusion. In November 2020, Bitcoin Cash underwent another split creating Bitcoin Cash Node and Bitcoin Cash ABC, with most support swaying towards Bitcoin Cash Node. Over time, it has evolved by integrating smart contracts, enhancing scalability, and achieving significant market presence.

Bitcoin Cash (BCH)

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