What is Bitcoin Cash (BCH)?

TLDR
Bitcoin Cash (BCH) is a cryptocurrency created in 2017 as a fork of Bitcoin to prioritize fast, low-cost transactions through larger block sizes.

1. Peer-to-peer cash system – Designed as a practical payment solution with faster speeds and micro fees.
2. Bitcoin fork – Resulted from a blockchain split over scaling debates, favoring on-chain scalability.
3. Technical evolution – Upgraded to support smart contracts and DeFi via protocol improvements like CashTokens.

Deep Dive

1. Purpose & Value Proposition

Bitcoin Cash emerged to address Bitcoin’s scalability limitations. While Bitcoin (BTC) focused on decentralization via smaller blocks and Layer 2 solutions like Lightning Network, BCH increased block sizes (now 32MB) to handle 100+ transactions/second with sub-penny fees. This made it viable for everyday payments, remittances, and merchant adoption. The 2017 hard fork split the Bitcoin community, with BCH proponents prioritizing Satoshi Nakamoto’s original vision of “electronic cash” over BTC’s store-of-value narrative (CoinMarketCap).

2. Technology & Architecture

BCH retains Bitcoin’s SHA-256 Proof-of-Work consensus but diverges technically:
- Block size: 32MB vs. BTC’s 1MB, enabling higher throughput.
- Smart contracts: The May 2025 Velma upgrade introduced VM Limits and BigInt, expanding programmable functionality for decentralized apps (dApps) and DeFi.
- Low fees: Transactions cost under $0.001, appealing for microtransactions.

3. Key Differentiators

BCH distinguishes itself through:
- On-chain scaling: Avoids reliance on secondary layers, maintaining simplicity for users.
- Developer activity: Recent upgrades like CashTokens (native token standard) and proposals to reduce block times to 2 minutes signal ongoing innovation.
- Brand alignment: Positioned as “sound global money” rather than competing with BTC’s digital gold narrative (Levex).

Conclusion

Bitcoin Cash is a purpose-built payment network that diverged from Bitcoin to prioritize scalability and affordability. While it shares Bitcoin’s foundational principles, its technical roadmap and use-case focus set it apart. As BCH continues integrating smart contract capabilities, can it balance its payment-centric ethos with the demands of a evolving crypto ecosystem?