Bitcoin Cash Explained [Bitcoin Hard Fork] - Transcripts
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Bitcoin Cash started because of a hard fork in the Bitcoin blockchain. The Bitcoin Cash network supports a larger block size than Bitcoin.
Later on, Bitcoin Cash had another fork and turned into Bitcoin SV (increasing the size of the blocks again).
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Welcome back to the channel everybody, my name is Artie with coin caso one of the most advanced Cryptocurrency exchange platforms on the market in this Youtube series. We go over basic Cryptocurrency knowledge. We talk about Bitcoin, we talk about Blockchain, we talk about ethereum and this video will explain Bitcoin cash, 101, the absolute basics so that you can understand what Bitcoin cash is and it's explained in the easiest way possible. So if you want to get into the Cryptocurrency world and learn about all the basics in Cryptocurrency, please consider subscribing to the Youtube channel and check out this entire
Now most of us know what Bitcoin is but if you don't know how Bitcoin works, please watch this video for a full explainer. This video however is going to cover Bitcoin cash. Now if you think about the timeline of Bitcoin, Bitcoin was launched in 2000 and nine it had a very basic structure and as time progressed it became more and more popular. This led all the way up to the 2000 and 17 surge in Bitcoin price. Now if you think about the Bitcoin Blockchain and the program that was written for it, it was the most basic way to represent it but over time just like technology we get version two. Version three. Version 4.4 and as more people in the technology space started to see the flaws in Bitcoin and its limitations which became extremely apparent in the 2000 and 17 price increase. There was some people that realized that Bitcoin could be more efficient. Now Bitcoin is based on the Blockchain. Each one of these blocks in sequence only has a total allowed space of one megabyte. Now, all those transactions within a 10 minute timeframe need to fit in a one megabyte block. The reason they do this is to keep communications going quickly.
A one megabyte block can get sent out to the notes to get processed much faster Than larger blocks. But in 2017, as the price started going up, we saw more volume and trading, causing the block size is to get much larger. That's when a team of people decided that Bitcoin needed to be rewritten. Now, the only way that this can happen is if everybody on the network agrees to this increase in size of the blocks. So basically somebody proposed this change in the Bitcoin network. The only way that this change can occur is if everybody on the network agrees to this change, if they don't agree to this change, that's when a fork happens. So again, if you think about the timeline of Bitcoin and then a fork happening. So here's the Bitcoin Blockchain. A fork would break off of the Bitcoin timeline and run parallel to it. There are two types of forks, there's a hard fork and a soft fork. A soft fork is a very flexible version where if there is a break off, you can actually run both programs. A hard fork.
However, you have to choose which program you run either Bitcoin or the new version of Bitcoin called Bitcoin cash. So basically a fork is formed through a suggested update to the existing protocol. So if the network doesn't vote on it unanimously, a hard fork is created and new coins are produced on that parallel timeline. It's basically like every sci fi movie ever. How there are parallel universes. Now let's explain why they wanted larger block sizes as Bitcoin's price went up. More transaction volume happened, causing these block sizes to be larger. So people assumed in the future when we had incredible amounts of volume, the block sizes of one megabyte, we're going to be too small holding back the scalability of Bitcoin basically hindering it from growth. So there was two sides to this argument, there was the small block group and the large block group. Small blockers wanted the fast transaction speed, they wanted these one megabyte blocks because they're easier to send over the network. The large blockers wanted more transaction volume in each block, allowing Bitcoin to grow without any restrictions. Once this change was proposed, participants on the network get to vote which one they choose with their actions, not actually voting the way that they choose with their actions is deciding which program they run either the old Bitcoin or the new Bitcoin.
Bitcoin cash and basically the winner is the one with the highest volume of transactions on their Blockchain. Unfortunately the network didn't have a unanimous agreement. thus causing the hard fork to happen. And Bitcoin cash was created. Some users went Bitcoin cash and most users stayed with the original Bitcoin. But later on down the line once Bitcoin cash had gained some momentum. One year later an additional fork happened. This time they wanted to increase the block size even more from eight megabytes two, MB and again there were people on both sides and another fork occurred and now we have Bitcoin Cash abc and Bitcoin Cash SV which stands for Satoshi is vision. All are widely spread and adopted forms of Cryptocurrency basically it's strictly opinion based. You choose whichever Cryptocurrency you think is most valuable for you. The winner however is the one with the most transaction volume still. Bitcoin people simply choose what they believe is best.
It doesn't make it better. It doesn't make it worse. All cryptocurrencies are even unless you look at the price. I hope you guys enjoyed this video. I hope you got some value out of it. I hope I was able to increase your knowledge in cryptocurrencies so please if you like this video definitely leave a thumbs up. Don't forget to subscribe to the YouTube channel and like the Facebook page make sure to turn on notifications to get updated every time we release a new video. Either. Educational like this one or talking about the 24 hour news in the Cryptocurrency world. Thanks for watching everybody and we'll see you in tomorrow's video. Bye bye.