Crypto community is about to witness an upcoming Bitcoin Cash Hard Fork that is set to take place on the 15th of May. What is about to change and how will Bitcoin ABC affect the cryptocurrency market?
26 April, AtoZ Markets – Reportedly, Bitcoin Cash is about to get an upgrade on the 15th of May. Bitcoin Cash is now standing as the fourth-largest cryptocurrency by market capitalization. The digital currency is about to experience what is known as a “hard fork” in the middle of May.
All you Need to Know about Upcoming Bitcoin Cash Hard Fork
The upgrade will quadruple the size of Bitcoin Cash blocks from eight megabytes to 32 megabytes. It also is expected to reactivate some of the operation codes that will enable the Bitcoin Cash’s Blockchain to be utilized for more than just BCH transactions.
Moreover, the update has been entitled Bitcoin Adjustable Blocksize Cap (Bitcoin ABC). It will modify the underlying code that Bitcoin cash is based on in a bid to solve some of the major problems that limit the broader adoption of Blockchain technology. The key issue that the fork is aiming to solve is scalability.
Back in 2009, when Bitcoin has been just launched, the cryptocurrency was only able to process approximately seven transactions per second. Then, in August 2017, Bitcoin Cash has forked off the original Bitcoin with the purpose of escalating Bitcoin transactions’ speed. Bitcoin ABC now stands as a continuation of that project and aims to reduce transactions times to 2.5 minutes. For comparison, the original Bitcoin network takes about 10 minutes to produce one block.
What are the benefits of Bitcoin Cash Hard Fork?
Following on this, the update will also allow more people to make transactions simultaneously. In addition, Bitcoin ABC will enable more types of transactions to be carried out on the Bitcoin Cash network. In fact, it is expected that users will be able to archive and track real-world assets and even CryptoKitties. The transactions would be stored in the Blockchain as so-called “colored coins.” These tokens can represent any of the real-world assets.
These colored coins would provide users with an opportunity to store some important data using all of the security benefits of Blockchain. Thanks to the expected larger size of Bitcoin Cash’s blocks, users will be able to use the network for more than just transferring cryptocurrencies. According to the online reports, the network could also be used to host legally binding contracts or some other important documents without the third-party involvement.
The Bitcoin Cash hard fork is anticipated to put BCH into the competition with other altcoins, such as Ethereum, in terms of the ability to enable users to host more than just money transactions. The block size upgrade will appear as a key step that will bring the network closer to solving the scalability problem.
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