With trade advancing beyond peripheries of Nations , it becomes all the more important to think about some global currency. The business in global province is immensely challenged by different types of currencies being used in different countries. The currencies which have gained maximum popularity and momentum in the last decade – the cryptocurrency, holds the potential to revamp the world monetary system.
The Crypto allows its users a quick exchange of money at a very insignificant cost internationally. This all is further assisted by high level of security. And this can be done without a bank account.
Although markets abound with thousands of cryptocurrencies, the crypto coins which top the charts are Bitcoin and Ethereum. Bitcoin has grabbed a lion’s share in the market which is almost double to that of Ethereum. But when put together, they are enjoying almost 70 Percent of the total crypto market lot.
The raison d’être behind the creation of Bitcoin and Ethereum were altogether different. On one hand, Bitcoin was launched with a purpose to substitute the fiat currency with the digital one whereas Ethereum on the other hand was just a way to support its own smart contracts and apps with a currency of its own.
Bitcoin (BTC) Bitcoin cash (BCH)
Bitcoin and cryptocurrency are often used synonymously as it was the first of its kind in the field of digital world. Bitcoin has taken the world economy by storm since its inception and therefore enjoys a major chunk of crypto market capitalization. It still enjoys the market dominance and is often visualized as digital gold. Satoshi Nakamoto, the trailblazer behind crypto coins launched Bitcoin in 2009. It was equipped with all that was lacking in fiat currency. It is a peer to peer decentralized coin, secured on cryptographic technology of blockchain and verified by proof of work.
Today it is not controlled or possessed by any one person and is open for all. A new block is added to the existing blockchain every 10 minutes in Bitcoin. The maximum number of Bitcoins that can be ever mined can’t surpass 21 million. In the very beginning of Bitcoin mining, the miners were rewarded with 50 Bitcoins on addition of each block. But after the completion of every 210,000 blocks, the reward gets halved automatically and currently the miner gets only twelve and a half Bitcoins as his prize. This strategy is actually Bitcoin’s shield against deflation in the long run. As per the future projections the last set of Bitcoins will be mined by 2040.
Bitcoin Miners Are Divided into Two Parts
In 2017, the main blockchain of Bitcoin altered itself into another permanent blockchain, by hard forking, popular as Bitcoin Cash today. In the process of hard forking, the miners are divided into two parts, one which is following the older version – Bitcoin, and one which pursues the new protocol – Bitcoin Cash.
The Bitcoin blockchain in its original version is working with 1 MB data for each block, which allows only 4 to 7 transactions in a seconds time. This number is far behind the average transactions on Visa or PayPal network. As a result, a huge backlog of unverified transactions was created, with users eager to pay exorbitant rates to get their transactions confirmed. Henceforth, to fix the problem of speed and scalability, the Bitcoin followers bifurcated into BTC and BCH.
Now Bitcoin Cash is running on 32 MB data thereby not only bringing down the cost of transactions to fractions of a cent but also enhancing the processing speed to 200 transactions per second. But this appreciation of technology comes with a security lag which is almost impossible to breach in BTC.
