See the NEXT BITCOIN making waves in the crypto market.
Everything you need to know about the next Bitcoin – Bitcoin Cash (BCH).
Hello there, and welcome to HotNaija, your one-stop destination for the latest entertainment news, celebrity gossips and stories, lifestyle content, and cryptocurrency news. Today we'll be sharing everything you need to know about the next Bitcoin to break the crypto market. Without any further ado, let's get started.
WHAT IS BITCOIN CASH?
Bitcoin Cash is a peer-to-peer electronic cash system (just like many other cryptos out there) to become one of the soundest and groundbreaking global money, with swift payments, micro fees, complete privacy, and high transaction capacity (large blockchains).
Like similar digital currencies, Bitcoin Cash requires no third parties (financial institutions, banks, governments, etc.) in carrying out transactions. It's fully decentralized and doesn't require any form of permission to carry out transactions.
HOW IS BITCOIN CASH DIFFERENT FROM BITCOIN?
With the same performance identity, same blockchain technology, the same feature of creating only 21 million coins ever in history, Bitcoin and Bitcoin Cash are almost identical in every way, only that the two represent two different social experiments.
Today, many netizens, investors, and rich people predict Bitcoin (BTC) as the digital gold of the future. At the same time, according to its white paper, Bitcoin Cash is the digital cash of the internet.
This huge comparison between these two incredible e-cash systems wouldn't have occurred if, in 2017 (when BCH was created), the Bitcoin project and Its community didn't split up over concerns about Bitcoin's scalability.
Many even regard BCH as the legitimate continuation of Bitcoin's project, which subsequently led to the ownership of Bitcoin Cash by Bitcoin holders when it newly was released.
Note: Owners of BTC at the time BCH was forked (block 478,558) automatically became Bitcoin Cash owners too. So, Satoshi Nakomoto's Bitcoin is different from the Bitcoin Cash blockchain.
WHAT IS THE WHITE PAPER?
The popular white paper standard in the crypto market was first published in 2009 by Bitcoin's original creator – Satoshi Nakomoto. He described what Bitcoin was and what it was meant to do (its purpose of creation). He then titled it "Bitcoin: A Peer-To-Peer Electronic Cash System."
THE BITCOIN PROBLEM:
Since Bitcoin's inception, and when people started becoming familiar with the coin, as soon as it gained the required popularity through the help of those who shared their success story in Bitcoin, two things began to happen:
1). Volatility:
Bitcoin would go up to $10 and fall back down to a dollar, it would go to $100, and fall back down to $10, then it would go from $100 to $1,000 and back down to $100. It did this for a couple of years until some new and experienced engineers helped improve the original system of the now renowned blockchain technology.
2). Scaling Problem:
This wasn't a surprise, as it's something that usually occurs to everything in the tech industry once it gains the required popularity needed. This phenomenon was called the "Scaling Problem." Because, how do you scale a newly-released technology that's still trying to gain its ground, from just a few hundred people to millions of people to a billion people? Unfortunately, for Bitcoin to compete with world-famous payment processors like – "Visa," it has to make sure it can back it up, which it sadly can't.
According to Visa and expert researchers, it averages 1,700 transactions every second, while Bitcoin can only handle up to four transactions per second. This invariably means that for Bitcoin to scale globally, it has to be available for everyone in the world as a usable currency.
Fun Fact: Bitcoin had a fundamental disagreement with itself on fixing this problem, and in August 2017, Bitcoin Cash was born.
THE SCALING DEBATE:
How do you scale Bitcoin? Should we make the blockchain larger? Or should we scale off the blockchain? Well, there are pros and cons to both.SCALING ON CHAIN:
People in the camp of Bitcoin Cash (BCH) wanted to increase the block size from 1MB to 8 Megabytes (BITCOIN CASH POINTS TO HIMSELF). So instead of 4 transactions per second, it can do 32 transactions per second. This would allow more transactions to be included in the block and thus make them cheaper. The roadmap consists of continually scaling the blocks as needed.SCALING OFF-CHAIN:
People on the side of Bitcoin (BTC) wanted to scale off the chain with a second layer solution called the 'Lightning Network,' which theoretically allows millions of transactions per second for almost free.
THE DOWNSIDES:
Scaling on the chain is simple. Unfortunately, it comes at the expense of decentralization. If Bitcoin succeeds as a currency, the blocks will become so large that only wealthy individuals (corporations) could afford to run a node. If corporations are the only ones that can do that, they would be susceptible to regulations from the government.Scaling off-chain would give us virtually unlimited performance if it worked. The lightning network is already here, but it doesn't work at scale yet. It still carries risks. This is because scaling off the blockchain means creating entirely new technology. Other risks include privatization and/or recreating the fractional reserve banking system.
HOW DOES LIGHTNING WORK?
Lightning works by two people opening up a channel (paying on a chain fee) and depositing any amount of Bitcoin into a reserve wallet (ideally through a smart contract). The users are now free to exchange IOUs representing the original staked coins, but the actual coins are not moved until the channel is closed out and the transaction is settled on the blockchain. Think of it as gold (layer 1), issuing FIAT to represent that gold (layer 2), which we then transact with.CoinMarketCap
Current Market Rank – #19
Current Price – $671 (₦275k)
Current Market Cap – $12,742,526,324 (₦5.23 T)
Current Market Dominance – 0.45%
HOW TO BUY BITCOIN CASH:
The crypto is available for purchase on almost all verified exchanges in the market. Exchanges like Binance, Coinbase, Gate.io, OKEx, FTX, etc., all have Bitcoin Cash available for sale/trade.
EndNote: None of these is meant to be construed as investment or financial advice. These are just opinions, and we urge everyone to do more deep personal research before investing their money.
Make sure you check out our other blog posts for more information about the crypto market and trending entertainment headlines. Thanks for reading!