<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 that emerged in **August 2017** via a **hard fork** of Bitcoin. The fork resulted from debates about how to scale Bitcoin for increasing transaction volumes, leading advocates like **Haipo Yang** and **Roger Ver** to push for **larger block sizes**—initially **1 MB to 8 MB**, and later up to **32 MB**—to enable **faster transaction throughput** and **lower fees**. This approach aims to establish BCH as a **peer-to-peer electronic cash system**, emphasizing speed and affordability over Bitcoin’s more conservative scaling strategy.

### **How does Bitcoin Cash work?**
Bitcoin Cash uses a **Proof-of-Work (PoW)** blockchain with the **SHA-256** hashing algorithm (like Bitcoin), but it supports blocks of up to **32 MB**, allowing more transactions per block at reduced fees. In addition to straightforward payments, BCH supports **smart contracts** through the **Simple Ledger Protocol (SLP)**, enabling custom tokens and on-chain applications. It also uses the **Adaptive Block Limit Algorithm (ABLA)** to dynamically adjust block sizes, maintaining efficiency even as the network grows.

### **What are the potential use cases for Bitcoin Cash?**
Thanks to its **quick transaction speeds** and **low fees**, Bitcoin Cash is an attractive option for a variety of real-world scenarios:
- **Online and In-Store Payments:** Merchants such as **TravelbyBit** and **BitPay** accept BCH, while many businesses in **Japan** and **Australia** integrate it for fast, low-cost sales.  
- **Charitable Efforts:** Organizations like **EatBCH** in Venezuela use BCH for grassroots fundraising and food distribution.  
- **Tokenization and DeFi:** Through SLP, BCH enables **token creation**, **asset management**, and potential **DeFi** applications.  
- **Micropayments and Tipping:** Low fees allow practical uses like tipping on social media and **IoT integrations**.  
- **Privacy-Enhanced Transactions:** Tools such as **CashFusion** increase anonymity for users who need enhanced privacy.

### **What is the history of Bitcoin Cash?**
**Bitcoin Cash** debuted at **Bitcoin block height 478,558** in August 2017. Beyond the initial block size upgrades, key milestones include:
- Launch of the **Simple Ledger Protocol (SLP)** for token creation.  
- Introduction of **CashFusion** to enhance transaction privacy.  
- A **chain split in November 2020** that produced **Bitcoin Cash Node (BCHN)** and **Bitcoin Cash ABC (BCHA)**, with BCHN gaining the most community and miner support.

BCH reached **over $4,000 USD** in December 2017 at its price peak. The network continues to evolve by refining its **smart contract** capabilities and improving **scalability**, striving to be a widely accepted, **global electronic cash** solution—evidenced by merchant adoption and its use in regions with **high inflation**, such as Venezuela.


Bitcoin Cash (BCH)

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