Bitcoin Cash is a cryptocurrency which was created via a fork of the Bitcoin Network. Anyone who had Bitcoins with them before 1st August,2017 had an equivalent amount of Bitcoin Cash with them after the forking took place. People usually refer to Bitcoin Cash as BCH (or BCC). In this article, we'll be using the abbreviation BCH for Bitcoin Cash and BTC as an abbreviation for Bitcoin.
This article will talk about the wallets which one can use for trading BCH, the transaction fees for BCH, similarities and differences between BCH and BTC transactions and how to send or receive money using these wallets.
Bitcoin Cash Wallet
Not all wallets can be used for BCH transactions. Companies are still creating their BCH wallets for users to use and perform transactions but there are a few who are already ready with it. Some of the major full node wallets are:
(1) Bitcoin Unlimited Cash Edition : Validates blocks faster and safer using Parallel Validation and saves bandwidth while downloading new blocks.
(2) Bitcoin ABC : First full node wallet software for BCH. It's also the most popular wallet for BCC.
(3) Bitcoin Classic : It Has two versions (one for BCH and the other for BTC) and both can be run parallel without any conflicts. Code is much cleaner.
(4) Bitcoin XT : Faster and bandwidth cheaper for downloading new blocks. Least used full node software for no reason.
Bitcoin Cash Transaction
BCH has a transaction fee which is levied on every transaction. The transaction charge is levied when the bitcoins are transferred from one wallet to another. This can be related to the gas charges on the Ethereum network. The average transaction fee is between $0.05-$0.1 currently. This value keeps depends on many factors but a few of them are:
the volume of transactions,
the difficulty to mine a block,
list itemthe hashpower, etc.
One reason why the BCH has a small transaction fee as compared to that of BTC is that, it has a bigger block size(8mb) as compared to that of BTC(1mb). This results in more volume of transactions taking place efficiently without any congestion. As a result, the transaction fee is much lesser as compared to that of BTC.
BCH Vs BTC
The similarities between BCH and BTC transactions are:
Proof of Work
Same block times and reward system.
The differences lie in the block size limits.
BCH proposes 8 MB blocks compared to BTC's 1MB block size
Also, BCH will adjust difficulty every 6 blocks as compared to BTC's 2016 blocks
You might wonder how the transaction replay is being handled between the new and old blockchains?
So basically, BCH transactions use a new signature hashing algorithm which is indicated by SIGHASH_FORKID. These signatures are not valid on the Bitcoin Legacy Network. This helps BCH transactions from being replayed on the Bitcoin blockchain and vice versa.
Right now, BCH might not really seem to be profitable but it surely is a wise idea to go with BCH as the price of BCH is low right now and the transaction fee is low too. On the long run, BCH is definitely going to be much more profitable as compared to BTC for those who start buying it now.
For news, technical blogs and project updates on Blockchain Technology, please join us at our Website, Facebook, Medium and follow us at Twitter. Please feel free to share this post, and email us with your suggestions.
#Bitcoin #BitcoinCash #cryptocurrency #blockchain #wallet #eli5