Connect with us

Bitcoin

What is the Difference Between Bitcoin and Bitcoin Cash?

Published

on

Difference Between Bitcoin and Bitcoin Cash

The new digital currency bitcoin cash is the result of an ongoing debate between different factions of the bitcoin community on how to best scale the bitcoin network. Unable to come up with a single solution that would have helped the bitcoin cryptocurrency stay unified, the bitcoin blockchain split into two on August 1, 2017, to create bitcoin cash as a new digital currency alongside bitcoin.

What is Bitcoin and Bitcoin Cash?

Bitcoin was launched in 2009 as the world’s first cryptocurrency with the aim to provide a decentralized digital payment system that anyone can use without the need for a bank or any other financial intermediary.

Since its inception, bitcoin’s value has grown substantially and even surpassed the value of a troy ounce of gold in early 2017. In September 2017, the price of bitcoin rose an all-time high of more than $4,900.

Today, bitcoin is utilised as an alternative currency across the globe after having gotten the green light from various governments. Bitcoins market worth has also grown to more than $60 billion.

Besides being used as a currency to make purchases online, bitcoin is also used as an investment asset class, a storage of wealth and as a low-cost payment system.

Bitcoin cash, which carries the ticker BCH, was created after a fork of the popular bitcoin network on August 1, 2017. Therefore, any users who had bought or invested in bitcoin before the hard fork received an equal amount of bitcoin cash holdings in their bitcoin wallets, which is why bitcoin cash immediately became one of the biggest cryptocurrencies in terms of market capitalisation.

What is the Difference Between Bitcoin and Bitcoin Cash?

As mentioned earlier, bitcoin cash was created as an answer to the scalability faced by bitcoin.

The main and only notable difference between bitcoin and bitcoin cash as noted by users of both blockchain technologies, is that bitcoin’s block size remains at one megabyte allowing for around 250,000 transactions in a day while bitcoin cash increased its block size limit to eight megabytes allowing for the processing of close to two million transactions in a day.

Given the same hashrate, bitcoin cash is, therefore, able to allow for more transactions in any given second which makes its payments faster and cheaper. This means that in the long run, bitcoin cash may be viable and may less minimal scalability hurdles given its larger block size.

Even with the high speed and low cost of transactions, most of bitcoin’s infrastructure such as the remittance platforms, payment systems, and wallets have no support for bitcoin cash and see it as an altcoin. This limits the use of bitcoin cash as it does not go beyond certain purchases. Questions and doubts, therefore, arise on the value of bitcoin cash as there is little to no adoption by users and merchants.

Although there is some support for bitcoin cash from the bitcoin community members who wanted larger blocks, the vast majority of the community still supports the original bitcoin blockchain that has since undergone a SegWit upgrade to improve its scalability.

With the split, we can only join strategic investor and advisor at BTCXIndia, Linus Lindgren, in hoping that the two parties can stop arguing and “instead […] focus all their energy on developing their respective project, in whichever direction they deem best to achieve the goal that’s important for them.”

Bitcoin

Nigeria Wants Regulatory Framework for Cryptocurrencies

Published

on

Nigeria Regulatory Framework Cryptocurrencies

With cryptocurrency adoption soaring in Nigeria, it is no surprise that on April 25, 2018, members of the House of Representatives, urged the Central Bank of Nigeria (CBN) and the Nigerian Deposit Insurance Commission (NDIC) to create a legal framework for the regulation of blockchain technology.

The resolve was passed following the adoption of a continuous motion titled ‘Need to regulate blockchain applications and Internet technology’, which was supported by Solomon Adaelu, who emphasised the innovation that the blockchain brings such as the potential to accelerate payments in the country’s financial services industry.

Adaelu said: “Blockchain as a digital and decentralisation ledger technology that records all transactions without the need for financial intermediary bank is new to humanity and can be a core payment facilitator for financial services industry. A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography as an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.”

The blockchain was invented in 2008 for the cryptocurrency bitcoin. Since its establishment, it has helped solve the issue of double spending on digital currency transaction without the need for a central server or trusted authority.

Adaelu went on to state that the deadline for a unified cryptocurrency regulation had been set for July 2018 following the G20 Finance Ministers’ meeting in March.

He further added: “Countries such as the USA, the UK, Russia, Venezuela, and Kenya have [already] provided [a] framework for the regulations of this emerging technology,” and believes that Nigeria should be next in line to do so.

Other lawmakers supported the motion while acknowledging the warning given by the NDIC to be careful when trading cryptocurrencies, given the complexity and uncertainty surrounding them.

Continue Reading

Bitcoin

Binance Partners with Blockchain Innovation Hub in Uganda to Promote Economic Development

Published

on

Binance in Uganda
Image by Binance

Binance, a global cryptocurrency exchange, has partnered with Crypto Savannah, Made in Africa initiative, and Msingi East Africa to promote economic development and youth employment in Uganda using blockchain technology. The partnership aims to achieve these goals by “creating thousands of jobs and bringing investments to Uganda.”

Made in Africa initiative and Msingi East Africa are organisations that are dedicated to the economic transformation of African countries while Crypto Savannah is a newly created African blockchain innovation hub.

According to Trading Economics’ data, the employment rate in Uganda stood at 47.80 percent in 2012 compared to 88.30 percent in 2009. The broad use cases for blockchain technology have the potential to change these statistics for the better by providing innovation opportunities for young people.

Changpeng Zhao, CEO and founder of Binance, announced these plans on Twitter and hinted at the possibility of Binance getting more involved in African projects.

Binance’s initiative is believed to have peaked at a recent meeting with the Blockchain Association of Uganda (BAU) where Zhao interacted with the local blockchain community and promised to support and train young entrepreneurs leveraging the blockchain. He also advised young entrepreneurs to offer solutions that are going to improve the lives of the society.

“Binance is tailor-making partnerships according to the environment. We want to understand the landscape and grow our understanding of the market.”

Zhao’s meeting with BAU will be followed by the Africa Blockchain Conference 2018 which will be held in Kampala in May.

Blockchain Technology is Gaining Momentum in Africa

The Binance initiative is just one of the several upcoming blockchain-based projects that are taking place in Africa. For instance, the World Food Program recently announced a partnership with Devery to make food delivery to Tunisian school children safe. Furthermore, the World Blockchain Summit held in Nairobi last month has helped to open doors for global blockchain companies to establish themselves in Africa.

In view of the Binance initiative, Africa could attract more global blockchain companies in the future as the technology continues to take root on the continent.

Continue Reading

Bitcoin

BitMari Conducts First Test Remittance on the Bitcoin Lightning Network

Published

on

BitMari Bitcoin Lightening Network

Zimbabwean startup BitMari has managed to successfully conduct its first Bitcoin Lightning Network test transaction with Tanjalo, a bitcoin startup from Lagos, Nigeria. The transaction signals a shift for remittances in Africa as users can soon expect almost instant low-cost bitcoin remittances.

Fast Transactions, Low Fees

BitMari is a Zimbabwe-based bitcoin company that leverages blockchain technology to expand into new remittance markets for the African diaspora. The startup was founded in 2015 by Sinclair Skinner and Christopher Mapondera to address the challenges faced by Zimbabweans when sending money overseas and vice-versa. In 2017, the company made history by becoming the first bitcoin enterprise to receive a money transfer license from the Reserve Bank of Zimbabwe. The company also formed a strategic partnership with Agribank to handle remittances for their customers using bitcoin.

Tim Akinbo, the co-founder and CTO of Tanjalo, was able to transfer $15 from Nigeria to a recipient in Zimbabwe through the BitMari platform using bitcoin. He believes the almost instantaneous money transfer will be instrumental in transferring value and promote cohesion by bridging local communities. The company is excited about the new development especially after successfully setting up the Lightning nodes.

Skinner, who is an ardent supporter of the adoption of bitcoin and blockchain technology in Africa to solve everyday challenges, stated:

“BitMari’s quick adoption of Lightning is active use of Bitcoin and Blockchain technology to solve real World challenges facing Africans on the continent and in the diaspora; such as costly remittance fees.”

The Bitcoin Lightning Network

The Bitcoin Lightning Network (LN) is a system built on top of bitcoin that enables people to send and receive payments instantly, and lower transaction costs by bypassing the blockchain. The Lightning Network’s use of payment channels lets users transact with each other directly without having to broadcast their business to the entire network. Currently, the Lightning Network is growing after being launched a short while ago on main-net by the Lightning Labs team.

BitHub Africa, a Nairobi-based blockchain accelerator of which BitMari is a member, has published a guide on how someone can go about setting up a Bitcoin Lightning Node on a cheap computing device called Raspberry Pi. The device can be used to process transactions by anyone with the resources and skills to host the node.

For now, BitMari is searching for other Lightning nodes to connect to their own. The company is also focusing on improving its user experience to increase adoption of its services and pass on the benefits of fast and affordable remittances to its customers.

Continue Reading

Popular Posts