Bitcoin Cash ABC is a digital asset that implements the Bitcoin Cash protocol. The Bitcoin Cash network was founded in 2017 after it splintered off from Bitcoin intending to process more transactions. According to LinkedIn data, the platform is headquartered in France, Paris. The supporters of Bitcoin Cash ABC include such famous companies as Gemini and Binance, which described the platform as innovative.
The history of the Bitcoin Cash network is full of controversy. The first split took place in 2018 when Bitcoin Cash SV emerged. In 2020, another split followed and a new coin with a ticker BCHN appeared. Most of the major cryptocurrency platforms support ABC and are wary of SV by alerting customers to the dangers this asset carries.
Bitcoin Cash has regular protocol upgrades that are necessary for its node operators. They are scheduled twice a year on November 15th and May 15th. The upgrade that took place in November 2020, brought the split into two separate entities and revealed fundamental disagreements in the community. The developers of the network have different views on how Bitcoin Cash should operate and what goals it should pursue.
On November 15, 2018, the planned update of the Bitcoin Cash cryptocurrency network took place, but during the hard fork, the traditional scenario was undermined. Two development teams have proposed incompatible clients, Bitcoin ABC and Bitcoin SV. As a result, the network was divided, and a split occurred in the community that was described as a civil war by cryptocurrency users. Two factions tried to take over the network and the name Bitcoin Cash, which was the 4th biggest cryptocurrency in the world at that time.
The Bitcoin SV team, led by Craig Wright, who is posing as Satoshi Nakamoto, attempted to attack the Bitcoin ABC network during the update. The developers are extremely hostile towards the competing blockchain. This affects the reputation of the ecosystem and tells upon its price that decreased significantly after the split. The head of Bitcoin.com Roger Ver, who supports the "original" Bitcoin Cash, is more engaged in promoting his own product, rather than trying to openly destroy others. The entrepreneur wrote on his Twitter account that there are no winners in the war, some simply lose less than others.
As it was mentioned above, the competing Bitcoin Cash camps received the names Bitcoin Cash ABC and Bitcoin Cash SV. Bitcoin Cash ABC is called this way as it promoted the software entitled Bitcoin ABC, which is short for Adjustable Blocksize Cap. The members of this camp support the idea that the block size should be maintained at 32 MB. The members of the rival camp stick to a different opinion and promote a software version called Bitcoin SV, which is short for Bitcoin Satoshi Vision. This version increases the block size limit to 128 MB.
The goals of Bitcoin Cash ABC
The developers of the Bitcoin Cash ABC network set the goal to develop solid software with stable performance. The team of developers is dedicated to solving the problem of Bitcoin Cash scaling to make the digital asset a mainstream cryptocurrency for users the world over.
Bitcoin Cash ABC platform and technologies
Bitcoin Cash ABC uses a proof-of-work algorithm for the generation of blocks. On average, it takes about 10 minutes to generate a new block. Similar to Bitcoin, Bitcoin Cash ABC employs DAA (difficulty adjustment algorithm) that is needed to adjust the difficulty of block generation keeping the time for block mining approximately equal for the stability of the system.
The roadmap of Bitcoin Cash ABC includes work over three directions such as scaling, usability, and extensibility. The technologies involved to achieve scaling include Canonical Transaction Ordering and Schnorr Signatures. Using them, the platform gets scalable block processing and batched signature validation. At the time of writing, the team of developers works over such technologies as Faster Block Propagation and UTXO commitment. It is also planned to complete Merklix-Metadata Tree and Adaptive Block Size. The main goal is to scale the network from about 100 transactions per second to over 5,000,000 transactions per second. A high level of transaction processing should be preserved even in conditions of mass parallelization.
The usability of the platform was improved thanks to CashAddr, which provides another format for Bitcoin Cash addresses and enables to avoid confusion. SigHash that was added by the team makes users’ hardware wallets more reliable. The developers try their best to make transactions low-cost and secure for Bitcoin Cash users.
As for extensibility, the platform employs the technologies Basic Codes, 223 bytes OP_RETURN, and OP_CHECKDATASIG to improve this parameter. With a quality extensible protocol, the network becomes more alluring and robust for developers and businesses.
A new type of funding model
The coin with a ticker BCHA presents a unique funding feature reinvesting 8% of each BCHA block reward for the development of the network. This type of funding model that was called a new coinbase rule provides rewards for tech talents who develop the network via predictable salary, while the BCH model is based on a donation funding model. 50% of the funds raised this way are used for the roadmap developments, while the other half is controlled by the Global Network Council that includes miners and cryptocurrency holders deciding what projects are worth financing to increase the network value.
Businesses can select one of the chains after the split or follow both chains using Bitcoin ABC software. Both versions (for the BCHA network and BCHN network) are provided on the official website of the cryptocurrency. BCHN edition was created to meet the demands of users as it gained popularity on several exchanges. Therefore, this version of software functions differently but is still compatible with the Bitcoin Cash ABC software.
Bitcoin Cash ABC team
According to the vision of developers who work over the Bitcoin Cash ABC platform, the development of the Bitcoin Cash protocol should be an open and collaborative process. Any developer can contribute to the development of the protocol. With a new coinbase rule, Bitcoin Cash ABC can spend more effort and finances on the upgrades and improvements in the network.