Bitcoin Cash is built on a decentralized network structure where transactions are verified by nodes and included in blocks that are added to a public blockchain. The main difference compared to Bitcoin is the block size, which is larger in the case of Bitcoin Cash. This means that more transactions can be included in each block, increasing capacity and reducing transaction costs. Transactions in Bitcoin Cash are usually confirmed faster than in the Bitcoin network, making it more suitable for daily payments. The network is powered by miners who solve complex mathematical problems to validate transactions on the network.

Why does Bitcoin Cash exist?

Bitcoin Cash was created to address the scalability issues that Bitcoin was facing. Over the years, the Bitcoin network had become overloaded, resulting in slower transaction times and higher fees. By increasing the block size, Bitcoin Cash enabled more transactions per block, reducing congestion and transaction costs. The purpose was to make the cryptocurrency more useful for everyday transactions and less prone to the bottlenecks that Bitcoin had experienced. However, critics argued that the increased block size would make the blockchain less secure compared to Bitcoin, partly because the blockchain becomes larger and more difficult to manage if the blocks are bigger.