What is Bitcoin Cash(BCC)

Bitcoin cash has been announced on Saturday that they will go ahead with a fork on August 1 caught a lot of people.Bitcoin Cash is peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate.

Here is the project announcement on Bitcointalk. 

Here is the project website.  

What are the differences between Bitcoin and Bitcoin Cash?

Bitcoin Cash is the continuation of the Bitcoin project as peer-to-peer digital cash. It is a fork of the Bitcoin blockchain ledger, with upgraded consensus rules that allow it to grow and scale.And also there are three features about Bitcoin Cash.

  • Firstly, Block Size Limit Increase. Bitcoin Cash provides much needed relief to users with an immediate increase of the block size limit to 8MB.
  • Secondly, Replay and Wipeout Protection. Should two chains persist, Bitcoin Cash minimizes user disruption, and permits safe and peaceful coexistence of the two chains, with well thought out replay and wipeout protection. 
  • Finally, New SigHash Type. As part of the replay protection technology, Bitcoin Cash introduces a new way of signing transactions. This also brings additional benefits such as input value signing for improved hardware wallet security, and elimination of the quadratic hashing problem.

The price of Bitcoin Cash

On Jul 25, one unit of Bitcoin Cash was worth 0.177 bitcoins or about $460. Here is the Bitcoin Cash chart between Jul 23 and Aug 1.

What is the Timeline of Bitcoin Cash?

July 31

As you may have seen on social media, exchanges and merchants are currently scrambling to prepare for the fork.

At a minimum, these custodians of customer bitcoins will want to record customer balances right before the hard fork so they can untangle who’s entitled to what later. (Or risk facing accounting challenges).

More adventurous exchanges are preparing to list Bitcoin Cash as a separate asset, though this presents its own problems.

For one, listing a cryptocurrency that hasn’t launched could prove difficult. Also, once markets are live, trading is likely to be choppy. (Part of what caused crazy volatility during the Zcash launch was that so few exchanges supported it during the first few days).

August 1, 00:00 UTC

This is the expected time of the BIP 148 UASF launch.Because the bitcoin network is already enforcing BIP 91, this should be a non-event. That is, BIP 148 won’t split the network and bitcoin will continue as a single chain.

August 1, 12:20 UTC

Bitcoin Cash will launch.

At this point, miners that are mining Bitcoin Cash will create a transaction block greater than 1 MB in size and fork the bitcoin network.

There are a few scenarios here that depend on the percentage of hash power that the new blockchain attracts:

  • If less than 16% of bitcoin’s current hash power transitions to Bitcoin Cash, the first block will likely take over an hour. This won’t affect the bitcoin blockchain that much, though on average, blocks should take a little longer than 10 minutes.
  • If 17-50% of hash power moves to mining Bitcoin Cash, the first block will likely take between 20 minutes to an hour. This will slow down the bitcoin blockchain somewhat. Blocks on bitcoin will take between 12-20 minutes.
  • If more than 50% of hash power is mining Bitcoin Cash, the first block will likely take less than 20 minutes. This will slow down the bitcoin blockchain significantly. Blocks on bitcoin will take longer than 20 minutes on average.

During this time, users will likely begin sending Bitcoin Cash to exchanges that both list the cryptocurrency and that have vowed to continue operations through the fork.

August 3–7

If Bitcoin Cash has relatively low hashing power, we can expect some difficulty adjustments at this time. Most scenarios result in something close to 10-minute block times provided the hash power stays constant.

This is probably not a safe assumption as miners will likely be switching between Bitcoin and Bitcoin Cash depending on which one is more profitable.

Bitcoin Cash will be much easier to mine after the difficulty adjustments, and we may get some relatively fast blocks (2.5 minutes or less) until we hit block 479,808.

August 8–14

SegWit should lock in on bitcoin around this time.

Depending on how much mining power moves over to Bitcoin Cash, and how much new mining power shows up, lock-in on block 479,808 on bitcoin may take longer than expected.

Once lock in is achieved, the code will be activated later this month, effectively upgrading the main bitcoin blockchain to support larger-capacity transactions.

 

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