BCH

Bitcoin Cash (BCH) is a cryptocurrency created in 2017 as a fork of Bitcoin. It is designed to be a peer-to-peer electronic cash system that enables everyday, low-fee, fast transactions on-chain. The project emphasizes a larger on-chain block size to increase throughput and reduce costs for users.

History and development: On August 1, 2017, BCH split from the original Bitcoin blockchain in a hard fork, starting a separate chain while preserving the prior transaction history. The split reflected a disagreement over scaling, with BCH supporters arguing that increasing the block size would allow more transactions per block without relying on second-layer solutions. In 2018, a rival faction split away to form Bitcoin Cash Satoshi Vision (BSV), leaving the main BCH chain as Bitcoin Cash.

Technology and economics: BCH uses the same proof-of-work consensus as Bitcoin, based on the SHA-256 algorithm, and follows a UTXO transaction model. The block size limit is designed to be larger than Bitcoin’s, enabling more transactions per block and potentially lower fees. BCH is maintained by multiple organizations and developers, with reference implementations such as Bitcoin ABC and Bitcoin Cash Node. The supply is capped at 21 million BCH, with a halving schedule similar to Bitcoin, and BCH is traded on many exchanges for use in payments as well as investment.

Impact and usage: BCH has been adopted by some merchants and users seeking faster confirmation times and lower on-chain costs relative to Bitcoin, though it remains one of several competitive networks centered on on-chain digital cash and has experienced community fragmentation and market competition.