Bitcoin vs. Bitcoin Cash
Proceso offers an ASIC cryptocurrency mining operation focusing on Bitcoin and Bitcoin Cash. What are the main differences between Bitcoin vs. Bitcoin Cash?
The Bitcoin network is known for being slow, especially in comparison to banks that deal with credit card transactions. Popular credit card company Visa, Inc. (V), for instance, processes close to 150 million transactions per day, averaging roughly 1,700 transactions per second. The company’s capability actually far surpasses that, at 65,000 transaction messages per second.1
Bitcoin is too slow. We mean the Bitcoin network and the number of transactions per second. If we compare it with traditional banking methods, we’ll see a huge difference. And, in this case, Bitcoin loses. Visa, Inc. (V), for instance, processes close to 150 million transactions per day, averaging roughly 1,700 transactions per second while Bitcoin processes only 7 transactions per second. Bitcoin has become extremely popular, and that is the reason one transaction takes so much time. The technology just can’t process them.
Developers and cryptocurrency miners have come up with two major solutions to this problem. The first involves making the amount of data that needs to be verified in each block smaller, thus creating transactions that are faster and cheaper, while the second requires making the blocks of data bigger, so that more information can be processed at once. That’s how Bitcoin Cash (BCH) appeared.
The key difference between BTC and BCH is the block size. Bitcoin’s block size is limited to 1 MB, while Bitcoin Cash offers an 8 MB block. If a Bitcoin block contains about 2500 transactions, BCH contains 7000. It seems that the prospects for Bitcoin Cash are much better at first glance, but it’s not so simple in reality.
Most Bitcoin infrastructures (wallets, payment services, etc.) do not support Bitcoin Cash and consider it as another altcoin, not a “new bitcoin”. This means that its use is still limited to speculation on exchanges.
In any case, both of them are perspective and haven’t lost their high popularity all over the world. We’ll see what happens next!
