Many uninformed and potential newbies do not know that there are other forks of Bitcoin.
When the right knowledge is applied, it is powerful. This is why people are expected to do some research before leapfrogging to a superficial or half-baked piece of information.
What is a Bitcoin fork?
Bitcoin forks occur when "two or more blocks have the same block height" or when changes are made to the Bitcoin protocol. Generally, the validity of the rules is affected by a fork.
Typically, the miners who determine the block rewards examine the blockchain to add new features, restore functionality, or fix bugs caused by hacking. Forks must be resolved by a consensus, or else a permanent split could occur that may result in the creation of multiple versions of Bitcoin.
Different perspectives on transaction history are at the root of these forks. As Bitcoin became more popular, the size of the blockchain it was built on eventually slowed down. Due to this, the transaction fees are becoming more expensive and the system itself has become unreliable. The slowdown forced Bitcoin to come up with a solution that could scale since users tend to use it more frequently because of its popularity.
There are two types of Bitcoin forks—soft forks and hard forks.
In simple and clear terms, a soft fork is a change to the Bitcoin protocol, rather than a change to the end product. The big difference between a soft fork and a hard fork is that a soft fork is backward-compatible where it can be applicable to a new fork.
This means that the new protocol will be recognized by old nodes within the system. It also means that there is not a new product being launched.
Hard forks are a result of new versions of Bitcoin that are completely split from the original version. There are no transactions or communications between the two types of Bitcoin after a hard fork. They are separate from each other, and the change is permanent.
So what then is Bitcoin Cash?
When the hard fork happened in 2017, there was much controversy over which Bitcoin was the true Bitcoin. Bitcoin Cash was developed by Bitcoin miners and developers who were equally concerned about the future of cryptocurrency. They felt as though SegWit2x (also referred to as segregated witness) did not address the fundamental problem of scalability in a meaningful way, nor did it follow the roadmap initially outlined by Satoshi Nakamoto, the anonymous party that first proposed the blockchain technology behind cryptocurrency.
Bitcoin Cash has its own blockchain and specifications, including one very important distinction from Bitcoin. BCH has implemented an increased block size of 8 MB to accelerate the verification process, with an adjustable level of difficulty to ensure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it. Bitcoin Cash is thus able to process transactions more quickly than the Bitcoin network, meaning that wait times are shorter and transaction processing fees tend to be lower.
The Bitcoin Cash network can process many more transactions per second than the Bitcoin network. However, the faster transaction verification time comes with downsides as well. One potential issue with the larger block size associated with BCH is that security could be compromised relative to the Bitcoin network. Similarly, Bitcoin remains the most popular cryptocurrency in the world as well as the largest by market capitalization, so users of BCH may find that liquidity and real-world usability is lower than Bitcoin.
However, the perception of everyone is still fixated on the main Bitcoin which was originally developed with a white paper showing the ideals associated with the original creation of Bitcoin.
Klever would ensure that its users were properly engaged so that they could better understand the differences between Bitcoin Cash and Bitcoin. The world is transforming at a very fast pace and all those who are sitting on the sidelines should endeavor to create their own Klever Wallet and Klever Exchange (for trading).