Hi all, this post is going to be short and about Bitcoin Bitcoin Cash and Bitcoin SV for dummies like myself 🙂 Enjoy
In 2008, bitcoin was created, and it has become the starter of a new era of money, payments, and store of value. Thanks to blockchain, you do not need the middle man to make deals, bank to control your money, government proof to transfer value. The whole idea of blockchain is to create a system of transformation of information in a decentralized manner. It also created a value of each transaction as cryptocurrency, bitcoin.
Think of a bank account and you need to withdraw money or send it on your app to a friend or family member, they will charge you, they will limit the amount, or even block your account.
Like everyone else out there, you need a fearless access to your money at the time you need it. Think about investing in stock market, and you want to invest in a company based on a news at the middle of the night. With current banking system, you can’t. Cryptocurrency and blockchain are there to remove all the borders that centralized payment systems build between you, your money, and people.
You can skip the need for banks to trust or any other organization to control your savings, identity, or YOU. You can have 100% total control on your information thanks to cryptography.
Even with blockchain technology, peer-to-peer transactions needs updates and community grows and demand increases. For example, bitcoin has 7 major hard forks. Let’s see what we have done in name of BCH…
In 2017, bitcoin and its community decide to split their direction and differ each one with their unique ticker, BTC and BCH. So why bitcoin cash over bitcoin?
Bitcoin had a unique way of verification for each transaction on blockchain. These each transaction was recorded in a block of chain. The size of block for bitcoin was 1MB. Developers and miner agreed on increasing block size to be 2MB to increase scalability and they introduced SegWit2x protocol. However, this action did not worked as expected. In August 2017, some miner and devs decided to go through a hard fork as knows major updates to create another chain from original. This makes previously invalid blocks/transactions valid (or vice-versa). As a result, bitcoin cash, BCH, was created within its own blockchain having a block size of 8 MB to accelerate the verification process. This feature made bitcoin cash verification and transaction speed faster and fees lower than bitcoin.
Due to some debates among community, in 2018, BCH also ended in a hard fork to create Bitcoin SV. Developers believed to stay true to Satoshi’s original bitcoin white paper and to facilitate scalability and faster transaction speeds.
All these hard forks on bitcoin blockchain has occurred as community cared future of the bitcoin cryptocurrency, and its ability to scale effectively. As crypto community gets bigger and more demands created on blockchain technology more updates or hard forks will appear. For sure, future will be defined as we unleash from our chains and borders. Crypto community has started it with bitcoin. Let’s continue…
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In this post, we have mentioned about bitcoin, bitcoin cash, and bitcoin SV as hard forks. Read more about cryptocurrency here.
Let us know what you think about bitcoin’s future fork updates.