Bitcoin Cash is attempting to remedy this by increasing the block size from 8MB to 32MB, allowing more transactions to be processed in a single block. When Bitcoin Cash was designed, the average number of transactions per Bitcoin block was between 1,000 and 1,500.
Leading proponents of Bitcoin Cash, such as Roger Wehr, often refer to Satoshi Nakamoto’s original vision for the payment service to justify increasing the block size. They argue that changing Bitcoin’s block size would allow it to be used as a tool for everyday transactions and help it compete with international credit card organizations such as Visa, which charge high fees for processing cross-border transactions.
Bitcoin Cash differs from Bitcoin in another way because it does not include SegWit, another proposed solution that allows multiple transactions per block. segWit only stores information or metadata about a transaction within a block. In general, all transaction data is stored within a single block.
Aside from ideological differences and differences in block size, there are several similarities between Bitcoin and Bitcoin Cash. Both use a consensus proof-of-work (PoW) mechanism to mint new coins. They also use Bitmain, the world’s largest cryptocurrency mining company. bitcoin cash has a cap of 21 million, the same as bitcoin.6 Bitcoin cash also began using the same mining difficulty algorithm – technically known as emergency difficulty adjustment (EDA) – which adjusts the difficulty every 2016 blocks, approximately every fourteen days.
Miners have taken advantage of this similarity by switching between mining bitcoin and bitcoin cash. This practice benefited miners, but impacted the growing supply of Bitcoin Cash in the market. As a result, Bitcoin Cash has redesigned its EDA algorithm to make it easier for miners to generate cryptocurrency.
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