What is bitcoin cash block time? The Bitcoin Cash block time is about 10 minutes. What is Bitcoin Cash? The founders of Bitcoin Cash created the alternative cryptocurrency on August 1, to combat the rise in transaction wait times and fees on the original Bitcoin network. Bitcoin Cash increases the number of transactions that can be processed per block.
Why Create Bitcoin Cash? As the currency has grown in popularity, so have the number of transactions taking place on the network, and Bitcoin is currently pushing the limits of its software. The main problem is Bitcoin imposes a hard limit on the size of a block, the place where transaction information gets stored.
Currently, blocks on the Bitcoin blockchain are limited to 1 MB in size. Transactions on Bitcoin Over Time Why would Bitcoin limit the number of transactions the network can process? Well, since Bitcoin uses a distributed ledger, every user on the network needs to download and keep a copy of the entire Bitcoin transaction history. If unlimited transactions were allowed, Bitcoin would become the domain of a centralized few organizations with enough processing power to handle tens of thousands of new transactions per second.
New users can easily download the transaction history and join Bitcoin. However, this block limit also means that there are more demands for transactions than there is space in the block to fit them all. As a result, Bitcoin miners are charging fees to have your transactions prioritized and included sooner.
If you decide not to pay the fees, as of Novemberyour transaction takes on average a little over 2 hours to get confirmed. With fiat transfers, you pay fees to a bank.
The founders and community of Bitcoin Cash believe that block size does need a limit, but the 1 MB limit is arbitrary. Instead, they proposed a system with a block size of 8MB, still reasonable for new users to download but large enough that the new system could accommodate many times the number of transactions per second as the original Bitcoin blockchain!
Bitcoin Alternatives and a Divided Community Before deciding to create a new currency, the folks behind Bitcoin Cash appealed to the original Bitcoin community for an increase in block size.
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Those in favor of the increase cited greater accessibility and room to grow for the burgeoning Bitcoin user base. However, there were many opposed to the increase, including miners who would miss the fees for transactions, leading to a decrease in overall mining on the blockchain and lowered security as a result.
Opponents also believed that such an increase in network capacity would still lead to storage, bandwidth, and computing requirements outside the reach of the ordinary user. While the two camps did reach a small compromise in the form of BIP 91 and Segregated Witnessupgrades targeted at reducing the amount of information needed inside the block, the argument over increased block size dragged on for over two years.
Ultimately the two camps decided to part ways in the form of a hard fork on the Bitcoin network. The original Bitcoin would continue to exist with its 1 MB block limit.
A hard fork means that Bitcoin Cash kept the same transaction history as Bitcoin up until the moment of the fork. While technically almost identical, the two networks are not interchangeable.