What is Bitcoin Cash (BCH)?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
Bitcoin Cash split from Bitcoin in a hard fork in August 2017. It raised the block size limit, choosing to handle transactions directly on-chain and keep fees low. It shares Bitcoin's supply cap and Proof of Work but runs as an entirely separate network.
Key points
- Created in 2017 by a fork following the dispute over block size limits
- Pursues on-chain scaling — handling transactions directly in blocks
- Uses the same SHA-256 Proof of Work as Bitcoin, with far less hashpower
- Bitcoin SV split off in 2018; token functionality was added in 2023
Definition
A blockchain forked from Bitcoin that raised the block size limit in order to process transactions on-chain.
Around 2017, rising usage on Bitcoin pushed fees up and confirmations out. Two remedies were proposed — enlarge blocks, or compress transaction data and settle elsewhere, such as on the Lightning Network — and no agreement was reached. Bitcoin Cash was created by a hard fork led by the first camp.
The core technical difference is block size. Against Bitcoin's roughly 1MB constraint, Bitcoin Cash permits far larger blocks. More transactions fit per block, so congestion is rare and fees stay low. Consensus is the same SHA-256 Proof of Work, and it inherits the same 21 million cap.
Disagreements continued after the split: Bitcoin SV forked away in November 2018. In 2023 a mechanism called CashTokens was added, enabling custom tokens and simple contracts.
In practice it is used for low-cost transfers and small payments, with payment processors and wallets supporting it and merchant pilots over the years. The essential point is that it is a separate network with different philosophy and engineering choices from Bitcoin.
Watch out for
- · Far lower hashpower than Bitcoin means weaker resistance to a 51% attack
- · The similar name invites confusion, but it is an incompatible, separate chain
- · Several hard forks have occurred, so other tokens claim the same lineage
Frequently asked questions
Can I send BCH to a Bitcoin address?
No — they are different networks. Address formats can look similar and mistaken sends do happen, so always confirm the network.