BTC Wires

What One Thing Can Bitcoin And Bitcoin Cash Take From Each Other To Improve Upon Existing Consensus?

Bitcoin Cash(BCH) hard forked from the main Bitcoin network because of the conflict of interest, the BCH community wanted to increase the block size amid growing concerns of scalability issue. Bitcoin Cash community wanted to increase the block size to 8MB, which was even criticized by many given BCH network despite its advantages and better scalability never reached the intended block size.

Bitcoin community, on the other hand, have decided to go old school and not make significant changes to the original protocols created by Satoshi Nakamoto. There have been suggestions to decrease the block size to 300 kb, but there haven’t been many takers of the idea. Instead, Bitcoin Blockchain has decided to go for an off-chain solution in the form of the lightning network, to help it resolve its scalability issues.

The lightning network is still under development and despite many renowned names of the decentralized space rallying behind it, the LN has been criticized for its centralization, technical faults, and even excess transaction fee.

While Bitcoin Cash is steadily gaining momentum both in terms of price and popularity, the decentralization aspect comes back to haunt it. Mind you only Bitcoin and Ethereum is not considered security as per the SEC guidelines.

So, what can Bitcoin and Bitcoin Cash borrow from each other’s network to improve upon their existing consensus? We will try to analyze both the network’s strong point and see what changes both the network can incorporate to make their respective network more efficient.

You May Also Read: What Is Brian Kelly’s Prediction For Bitcoins?

Bitcoin’s Scalability Dilemma

Bitcoin has been facing the scalability dilemma for an eternity now, and since the network is so popular and dominates the trade market charts as well as trading volume across the globe, the slow transaction speed, and higher transaction fee have been haunting the Bitcoin Blockchain for quite some time now.

The off-chain solution Lightning network hasn’t really done much to bring in the confidence. The developers have promised numerous times that once the network is fully developed, it would take away a significant portion of the transaction volume form the mainnet. However, those who have used the current LN has called it technically flawed, extremely difficult to use and quite complicated.

The stance of developers to not make necessary protocol changes might come back to haunt them as other altcoins are making necessary changes and making them fast to make their respective network not just scalable but lightning fast.

Bitcoin takes around 4860 seconds to complete a transaction which is still fast when we compare it to the traditional portals like Visa and Mastercard, but it pales in comparison with other altcoins like BCH which takes one-tenth of the Bitcoin Time, while Ripple does it in mere 4 seconds.

Bitcoin can take the scalability solutions from the BCH network so that it can keep up with the other blockchains in the decentralized space.

You May Also Read: Is Bitcoin A Ponzi Scheme?

Bitcoin Cash is Often Called Out For Not Being a True Cryptocurrency

Bitcoin Cash is not an original blockchain but a forked out version of Bitcoin which was created due to conflict of technical interest over increasing the block size. While BCH network has scaled tremendously, but it was not able to justify its block size as the network never reached the intended 8 MB.

BCH in recent months has initiated several new blockchain based projects on its network, like hosting of Dapps, tokenization through its SLP tokens and future contracts. However, just making the network scalable does not really make much sense if the token has no usability in the real world.

BCH network does promise to work on long term goals but it needs to create a much wider sense of acceptance and usability in the community.

You May Also Read: Is Algorithmic Trading Resurrecting Bitcoin From The Dead?

Final Thoughts

Bitcoin has turned a decade old and despite having such wide usability and tremendous daily trading volume, its scalability issue might bring a doom, as a new token is getting launched every other day, with much better functionality.

On the contrary, BCH has shown tremendous development on its network, but decentralization and not being an original blockchain might come back to haunt it in the long run.

Here Are Few Articles For You To Read Next: