Bitcoin is the world’s most popular cryptocurrency, but there are two rival coins emerging to challenge it.
BCH (formerly known as “BitCash”) was created by the original Bitcoin Cash developers and is scheduled to become a permanent fork on Nov. 15th, 2018.
Ethereum is another competitor that started with an ICO in 2014 and which runs smart contracts on its Ether coin.
This cryptocirclex.com will give information about BTC ,ETH and BCH.
What is BTC?
Bitcoin was the first cryptocurrency to emerge in 2009, following the financial crisis. It was conceived as an alternative to fiat currency.
Users can “mine” BTC right now, but there will be no more new coins created after 21 million coins are mined (probably around 2040).
These coins are created through competitive software solving, and its popularity has made it the world’s most popular cryptocurrency with a market cap of approx USD$110 billion at time of writing (Oct 2018).
The protocol that powers Bitcoin is also used by two other cryptocurrencies: Ethereum and BCH (formerly called “BitCash”). We’ll get to them later…
A Little About History
The first working blockchain is the one we know today as Bitcoin. It was originally conceived by a pseudonymous hacker (or collective) called Satoshi Nakamoto.
In October 2008, they published a whitepaper about an electronic cash system that allows peer-to-peer transfer of “bitcoins”, with no need for banks or governments to get involved.
A year later, they released the first software that allowed others to create their own “bitcoins” and start mining. The first transaction took place on January 12th, 2009.
What is ETH?
Ethereum was the first cryptocurrency to offer smart contract capabilities, without having to rely on third party services or centralized servers.
It started as an “ICO”, so called because it really is an ICO. It started with a whitepaper in 2013 by Vitalik Buterin, a Russian-Canadian programmer.
Initially, the project used one of Bitcoin’s key innovations: blockchain technology. However, Ethereum went further by using its own Turing-complete language that runs smart contracts inside the blockchain network.
The first transaction occurred in July 2015 when 60 million Ether coins were created by the developers of Ethereum, which now has its own official currency called Ether (ETH).
These coins are meant to be a form of credit for transactions on the Ethereum network.
The coin has a current market cap of USD$81 billion and is the second largest cryptocurrency by price.
How BCH Came About
Bitcoin Cash was created in August 2017 when two large Bitcoin mining companies, Antpool and Slush Pool, decided to fork the Bitcoin protocol due to frustration over scaling issues.
In order to solve these scaling issues, they decided to go further back in history and create a new version of the Bitcoin network that would have been more resistant to these issues from day one.
This new blockchain would not have to process tons of transactions, or reject big block transactions, which slows down the network.
The plan was called “Bcash” for short, and it created a new cryptocurrency called “Bitcoin Cash”. This new blockchain would not have to process tons of transactions, or reject big block transactions, which slows down the network.
The plan was called “Bcash” for short, and it created a new cryptocurrency called “Bitcoin Cash”.
The First Controversy About BCH
Not everyone was happy with this fork. There were some who felt that Bitcoin Cash was simply an attempt at spamming the market with cheap coins that could only be acquired through exchanges that listed BCH (such as Coinbase).
Several of the largest exchanges refused to list BCH, most notably Coinbase. This is because it violates their terms of service to list coins that were listed on another exchange first.
This would be a conflict of interest.
In June 2018, Coinbase started allowing withdrawals of BCH after a three month freeze, citing customer demand as the reason for the change in policy.
How BCH Compares to BTC and ETH – The Similarities Between BCH & BTC
BCH and BTC are similar in a lot of ways: they both use a form of smart contracts called “smart transactions”, and this was derived from Ethereum’s smart contracts technology.
They also both use Proof-of-Work as their mining algorithm…
Ethereum’s smart contracts are also able to run over the BCH blockchain. The BCH blockchain can be thought of as a “blockchain-as-a-service”, where smart contract developers can build code and deploy it in a decentralized way.
There is no need to create a new decentralized application, they just need to write a smart contract in a language called SCALA (similar to Solidity for Ethereum).
BCH has the advantage though, with its own protocol. This reduces complexity and gives developers more control of their transactions and systems on the BCH network.