Bitcoin (BTC) – Bitcoin Cash (BCH) and Forking

Last Updated on December 17, 2021

Bitcoin is a global payment system that could be used by anyone in the world, without needing transactions to be confirmed by a third party. It is the original cryptocurrency, and uses the Proof-of-Work consensus mechanism .

Bitcoin Cash is a hard fork that increased the maximum block size from 1MB to 8MB (now handling 32MB as of this writing) to reduce fees and increase transaction volume.

FORKING (Software)

  • Hard Fork: A major upgrade that are not compatible with previous versions.
  • Soft ForK: Backward-compatible — old nodes can still add new blocks to the blockchain, as long as they adhere to the new rules.