#PAXG# #BCH# #BTC# BCH Core Introduction

Bitcoin Cash (BCH) is a hard fork of Bitcoin (BTC), born in August 2017, with the core goal of solving the problems of transaction congestion and high fees on the Bitcoin network, positioning itself as a "cryptocurrency more suitable for everyday payments."

1. Background of Core Birth

The Bitcoin network, due to the initially designed "1MB block size limit", can only process about 3-7 transactions per second (TPS), often experiencing congestion and skyrocketing fees (which once reached dozens of dollars per transaction) during peak times. In 2017, the Bitcoin community had a divide over whether to "expand the block"; the camp supporting the expansion created Bitcoin Cash through a hard fork (modifying the blockchain code and generating a new chain).

2. Key Technical Features

- Larger block capacity: Initially increase the block size to 8MB, and further support dynamic adjustment (up to a maximum of 32MB), raising TPS to approximately 100-200 transactions per second, significantly reducing the probability of transaction congestion.
- Lower transaction costs: Due to the more abundant block space, transaction fees are significantly lower than Bitcoin, typically only a few cents to a few dollars (depending on network congestion), making it suitable for small, high-frequency payments.
- Compatible with Bitcoin's underlying design: Utilizing Bitcoin's SHA-256 encryption algorithm and decentralized ledger structure, early holders of Bitcoin can receive an equivalent amount of BCH at a 1:1 ratio during the fork.

3. Main Application Scenarios

- Daily Payments: Focuses on the "peer-to-peer electronic cash" feature, with some merchants (such as offline retail stores and online platforms) supporting BCH payments, which can be directly used to purchase goods or services.
- Value storage and transfer: As a crypto asset, it can be used for cross-regional transfers (especially in cross-border scenarios, without going through banks, with faster transaction speeds than traditional remittances), and it is also seen by some investors as an "alternative storage option to Bitcoin."

4. Market and Ecological Status

- Market Ranking: Has consistently ranked in the top 10-20 cryptocurrencies by market cap (as of May 2024), with liquidity lower than Bit and Ethereum, but possesses a stable trading market.
- Community and Development: The core development team continues to maintain the network, supporting technology upgrades such as "zero-knowledge proofs" to enhance privacy and scalability, but the community's size and influence are far smaller than that of Bitcoin.

5. The core difference with Bitcoin (BTC)

Comparison Dimension BitCash (BCH) BitCoin (BTC)
Block size dynamic adjustment (maximum 32MB) 1MB (indirectly expanded through "Segregated Witness")
Transaction speed (TPS) approximately 100-200 transactions/second approximately 3-7 transactions/second
Core positioning Daily payment tool (electronic cash) Value storage ("digital gold")
Transaction fees low (a few cents - a few dollars) high (tens - hundreds of dollars during peak periods) Core Introduction to Bitcoin Cash (BCH)

Bitcoin Cash (BCH for short) is a hard fork of Bitcoin (BTC). Launched in August 2017, its core goal is to address issues of transaction congestion and high fees on the Bitcoin network, positioning itself as a "cryptocurrency more suitable for daily payments".

1. Core Background of Its Inception

Due to the "1MB block size limit" in Bitcoin's original design, the Bitcoin network can only process approximately 3-7 transactions per second (TPS). During peak periods, it often experiences transaction congestion and a sharp surge in fees (which once reached dozens of US dollars per transaction). In 2017, the Bitcoin community was divided over the "whether to expand the block size" debate. The camp that supported block expansion created a new blockchain by hard forking (modifying the blockchain code), giving birth to Bitcoin Cash.

2. Key Technical Features

- Larger Block Capacity: Initially increased the block size to 8MB, and later further supported dynamic adjustment ( with a maximum of 32MB ). This raises the TPS to approximately 100-200 transactions per second, significantly reducing the probability of transaction congestion.
- Lower Transaction Costs: Thanks to the more sufficient block space, transaction fees are much lower than those of Bitcoin, usually ranging from a few cents to a few US dollars ( depending on network congestion ), making it suitable for small-value and high-frequency payments.
- Compatibility with Bitcoin's Basic Design: It inherits Bitcoin's SHA-256 encryption algorithm and decentralized ledger structure. Users who held Bit in the early days could receive BCH in a 1:1 ratio at the time of the fork.

3. Main Application Scenarios

- Daily Payments: Focusing on the function of "peer-to-peer electronic cash", some merchants ( such as offline retail stores and online platforms ) accept BCH payments, which can be directly used to purchase goods or services.
- Value Storage and Transfer: As a cryptocurrency asset, it can be used for cross-regional transfers ( especially in cross-border scenarios, without going through banks, and with faster settlement speed than traditional remittances ). It is also regarded by some investors as an "alternative storage option to Bitcoin".

4. Current Market and Ecosystem Status

- Market Capitalization Ranking: It has long been ranked among the top 10-20 cryptocurrencies by market capitalization ( as of May 2024). Although its liquidity is lower than that of Bitcoin and Ethereum, it has a stable trading market.
- Community and Development: The core development team continues to maintain the network and supports technical upgrades such as "Zero-Knowledge Proofs" to enhance privacy and scalability. However, the scale and influence of its community are far smaller than those of Bitcoin.

5. Core Differences from Bitcoin (BTC)

Comparison Dimension Bitcoin Cash (BCH) Bit (BTC)
Block Size Dynamically adjustable (max. 32MB) 1MB (indirectly expanded via "SegWit")
Transaction Speed (TPS) Approximately 100-200 transactions/sec Approximately 3-7 transactions/sec
Core Positioning Daily payment tool ( "electronic cash" ) Value storage ( "digital gold" )
Transaction Fees Low ( a few cents - a few US dollars ) High ( dozens to hundreds of US dollars during peak periods )