What Is Bitcoin Cash?

Ledger Nano S - The secure hardware wallet

Bitcoin Cash (BCC) is the first hard fork from the Bitcoin system. Think of it as a spin-off. With the split, Bitcoin Cash will start operating as an alternative digital currency similar to Zcash (ZEC), Ripple (XRP), Monero (XMR), Ethereum (ETH), and Litecoin (LTC).

Like Bitcoin, BCC will be a decentralised cryptocurrency that allows peer-to-peer transactions between users. It was originally proposed as part of the Bitcoin Improvement Proposal (BIP) 148.

To set up BCC, the miners and developers behind it have introduced an alternative node, Bitcoin Adjustable Blocksize Cap (ABC), in the existing network. Because Bitcoin ABC contains a different structure and an entirely different set of rules, its introduction has caused the chain to cleave into two competing digital assets i.e. the original Bitcoin and Bitcoin Cash.

Nevertheless, Bitcoin Cash will carry the entire history of the older blockchain, including records of all transactions that have taken place. Therefore, Bitcoin users will be issued the same number of Bitcoin Cash tokens, provided both the exchange and the wallet support the new technology. While the majority of established exchanges will be integrating SegWit2X, a few Bitcoin exchanges have come forward to support Bitcoin Cash. Among these are Canada-based Kraken and Hong Kong-based Bitfinex.

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