The Development of Bitcoin Cash and Where BCH is Right Now
April 20, 2020
Bitcoin Cash made its presence felt when it initially split from the Bitcoin blockchain back in 2017. There was a point in time when it came very close to overthrowing Bitcoin and claiming the number one position based on the market cap.
However, all this hype about BCH overthrowing Bitcoin began to fade away. While the Bitcoin Cash network is faster than the Bitcoin network, people still prefer the latter. The BCH reward halving event rekindled this faded excitement in the project.
Bitcoin Cash completed its reward halving last month. The excitement of the future of this project just shot through the roof. However, everything didn’t go exactly as planned. To understand what went wrong we have to delve in deeper and explore the current situation post the halving event.
Current Situation: Post Reward Halving Event
Every four years, the Bitcoin Cash network undergoes a block reward halving event. This would cut the mining rewards precisely in half. This cut happens to prevent inflation of the coin. With the block halving in place, every four years, the supply of the coin is cut in half whereas the demand essentially remains the same.
This reduction, in turn, increases the value of every single BCH coin out there. The increase in the value of the coin also supports the miners who would now be making half the number of coins as before.
During the last BCH halving, this did not happen. While the block reward halved, BCH coins did not gain enough value to make up for the smaller rewards. With the mining difficulty also unaltered, miners ended up losing more money than they were making.
This is why a majority of BCH miners either turned off their machines or shifted to other coins. The result of which led to a decline in the hash power of the network. Consequently, the transaction confirmation time shot up.
With such high confirmation times, Bitcoin Cash is not as favourable as it previously was. Luckily, the core team behind the project has already started to make several developments to fix this issue and make this network a lot more usable.
Ongoing Development of Bitcoin Cash
The best part about the Bitcoin Cash project is its active development community. Developments to fix these issues have already been set in motion, and we can expect things to get a whole lot better very soon.
Some of the ongoing developments on the BCH network include:
One of the main bottlenecks of all digital assets is the unavailability of 0 confirmation or instant transactions. BCH makes use of POW (Proof of Work) Consensus to verify transactions on the network.
There are both strong as well as weak miners verifying the transactions. In such a scenario, weak blocks are a common occurrence. These blocks don’t have the required POW to be considered strong blocks. Until the strong block is not entirely mined, the transactions in the weak blocks are not verified.
With the new Storm implementation, these weak blocks are linked to the strong blocks, thereby allowing 0 confirmation verification of transactions. Once this feature has been implemented on the BCH network, instant transactions using digital assets will be possible.
This, combined with BCH’s existing low miner fee model, would undoubtedly make the regular usage of digital assets a possibility.
We are all familiar with Solidity, the programming language used to implement smart contracts on the Ethereum network. The BCH network aims to achieve the same with Cashscript.
Cashscript is a high-level programming language. Using this for smart contracts on the BCH network is going to be easy. Smart contracts were the essence of the Ethereum network. With the Cashscript implementation on the BCH network, we can expect a boost in interest to develop them on the BCH network as well.
The Infrastructure Funding Plan
This is a response by the BCH development team to the decline in hash power of the BCH network. In order to strengthen the BCH network, a specific ratio of the miner’s block reward would go directly to improve the infrastructure.
According to the funding plan, 2-3% donation till 2021 and 1% after that would be sufficient to strengthen it. This is an excellent move by the BCH team as it would undoubtedly help in making BCH a more reliable network in the future.
The development of the infrastructure funding plan has already been completed. It is said that this will be activated very soon.
This is a feature under development that mainly focuses on improving the performance of the Graphene protocol. The implementation of this will happen in two different phases. In the first phase, the performance of the Graphene protocol will get a boost. By improving the performance of the existing protocol, the speed would be significantly improved.
During the second phase of implementation, more extensions will be added to the Graphene protocol. This would help by adding more features and making it more useful in the BCH network.
The Future of Bitcoin Cash
Post the block reward halving; the BCH network had become extremely inconvenient to use. However, it has gotten a lot better over the past week. This situation is just going to get better as these developments go live.
There are several other features in progress on the Bitcoin Cash network. Increasing the number of chained transactions, reusable payment addresses, double-spend proof creation, and forwarding are some of the many features currently under development.
Additionally, there are several features in the discussion as well. This high development activity is a strong indicator of an upcoming bull run. It seems like the entire network is gearing up for another great push.
By having several features that make the BCH network more usable, the chances of being pushed even higher are great. The team is very optimistic about the upcoming bull run that they have also decided to reduce the ratio of donations towards the infrastructure development plan to 1% from 2021. BCH would undoubtedly be a great coin to watch out for in the coming future.