The word “bitcoin” seems to be on everyone’s lips in the last year thanks to its meteoric rise. however, what is bitcoin and why is the word often combined with other nouns like “cash” and “gold”?
where bitcoin is now universally regarded more as a store of value than a payment network (at least currently) due to its slow transaction speed limitations, the others are positioned as digital currencies for everyday use, thanks to its largest block size. .
Reading: What is bitcoin sv and bitcoin cash
what are bitcoin forks?
Most forks are community-driven and aim to add more functionality to mainstream bitcoin, or stem from disagreements over critical features like speed, transaction fees, and block size.
what is the difference between a hard fork and a soft fork?
More importantly, after a hard fork, two decentralized networks cannot send messages to each other natively, as they do not have backwards compatibility, unlike a soft fork. once a platform forks, the new network is free to set its own course and set its own rules.
bitcoin (btc) history
However, before its release, its white paper appeared on the internet in October of the previous year. the bitcoin whitepaper outlines the key spheres of the digital currency. while mining the genesis block, nakamoto enshrined a message in the code that read: “the times jan/03/2009 chancellor on brink of second bailout for banks.”
eventually, many clones of the btc project were released, each promising a better result. To date, BTC remains the largest cryptocurrency in existence and is recognized by most as the only true Bitcoin network.
bitcoin cash (bch) history
Among the significant differences between the spin-off platform and the main one is the size of the block. bitcoin has a block size of 1mb, while blocks on the bch network can reach a maximum of 32mb.
bitcoin satoshi vision (bsv) history
bitcoin split (halving)
Mining is the process of confirming network transactions and finding new blocks in a power network, which uses intensive computational power to solve a mathematical puzzle.
therefore, the more computational power a miner has, the higher the chances of finding a new block faster than other miners in the network, consequently, the higher the chances of receiving mining rewards.
when does each halving take place?
Bitcoin automatically halves block rewards approximately every four years, or after 210,000 blocks are mined.
However, the implication of the bitcoin split encompasses the entire bitcoin ecosystem, not just mining revenue. for example, a halving also affects the number of new coins that enter active circulation in a given period, which is a smart way to deal with inflation.
also, since bitcoin has a limited supply of 21 million coins, controlling its scarcity can have a positive impact on its price.
Bitcoin’s first halving occurred on November 1. 28, 2012, cutting mining rewards from 50 btc per successfully mined block to 25 bitcoin. the second bitcoin split took place in july. 9, 2016, further reducing miners’ income by half (12.5 btc). In May 2020, the most recent btc split took place, reducing miners’ incentives to 6.25 btc for each new block.
split of bitcoin cash and bitcoin sv
fees and transaction speed
bitcoin vs bitcoin cash transaction fees
One of the visible differences between bitcoin and bitcoin cash is the transaction fees. Although costs fluctuate depending on blockchain congestion, the bitcoin network suffers from high transaction processing fees compared to bitcoin cash. however, this may not be a major selling point for the bitcoin cash platform as its transaction volume is only slightly higher than that of btc as of March 2021.
Speed-wise, bitcoin is capable of handling seven transactions per second (tps), while the bch-powered platform averages 116 tps. In theory, the Lightning Network outperforms BCH by allowing up to billions of transactions per second, but it’s nowhere near its final stages that would allow that many transactions.
Another key metric to compare between the two platforms is the mempool. a mempool is a virtual place where a decentralized protocol like bitcoin or bitcoin cash stores valid but unconfirmed transactions waiting to be added to a block.
Note that the higher the number of transactions in the memory pool, the higher the network congestion. To decongest the network, network nodes set a transaction cost threshold. all transactions below this mark are removed from the group.
bsv rates and speed
Bitcoin has kept the adoption wheel turning since the start of the 2020 pandemic, which is evident in the number of major corporations and institutions like tesla, microstrategy, and square that have added btc to their balance sheet as a security asset. safe haven that protects us against a weakening. dollar.
bitcoin cash adoption
the token eliminates the need for bch users to pay transaction costs using bch. In particular, SLPS reduces transaction processing fees while improving transaction speed and reliability.
bitcoin sv adoption
The three major implementations of the bitcoin protocol continue to thrive and compete for dominance in the cryptocurrency industry, but the competition is gone. btc has clearly won the brand and price battles, considering it is worth 70 times more than the other two chains combined, but there is plenty of room for more payments-focused cryptocurrencies like its rival brethren in the burgeoning and still nascent digital asset sector.