What is Bitcoin Cash?

What is Bitcoin?

If you don’t already know, Bitcoin is a decentralized digital currency system recorded on a public ledger called a blockchain. It was first created in 2008 by pseudonymous programmer Satoshi Nakamoto. Over the following years, Bitcoin became increasingly accepted amongst investors and technology enthusiasts. With its rise in popularity, people began to question whether Bitcoin was structured to support such largescale usage.

What is Blockchain?

So why would the increased adoption of Bitcoin be a problem? Understanding the theory surrounding this issue first requires you to understand blockchain. Put simply, a blockchain is a collection of “blocks,” and a block is something like a box that stores information. Each block is entirely unique, and stores its own information about transactions that have been made with cryptocurrency. These blocks are public, and anyone can view them.

Blockchain and Scalability

Now that we’ve established how blockchain works, let’s look at why it’s relevant to the issue of scalability.

Two Answers to One Problem

Two general groups formed in response, each with a different solution to the scaling issue:

  1. Another group thought the solution would be to simply increase the size of blocks so they didn’t become full as quickly.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Coin Cloud

Coin Cloud

169 Followers

The world’s leading operator of two-way Digital Currency Machines (DCMs), more advanced Bitcoin ATMs.