How does Bitcoin Cash address transaction speed

It was founded in 2017 as a fork of the original Bitcoin blockchain, aiming to address certain scalability issues and enhance transaction speeds. 

Transaction speed is a critical factor influencing user experience and the feasibility of digital currencies for everyday transactions. 

                     

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Guide of How Bitcoin Cash addresses transaction speed

• Increased Block Size

One of the primary solutions implemented by Bitcoin Cash to enhance transaction speed is the increase in block size. 

It has expanded this limit to 32 MB while Bitcoin (BTC) has a block size limit of 1 MB.

This allows for more transactions to be included in each block, significantly reducing the congestion that can occur when the number of transactions exceeds the block size capacity.

• Faster Confirmation Times

With the larger block size, Bitcoin Cash achieves faster confirmation times for transactions. 

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Bitcoin Cash's larger blocks enable a higher throughput which leads to quicker confirmation of transactions. 

This is particularly advantageous for merchants and users seeking to conduct fast and reliable transactions.

• Low Transaction Fees

The larger block size not only facilitates faster transactions but also contributes to lower transaction fees. 

Bitcoin Cash aims to provide a cost-effective alternative to traditional payment methods and other cryptocurrencies by keeping fees minimal. 

Lower fees make microtransactions and everyday transactions more viable, aligning with the original vision of Bitcoin as a peer-to-peer electronic cash system.

• Simplified Signature Hashing Algorithm

Bitcoin Cash introduced a change in the signature hashing algorithm known as SigHash 

It separates the transaction signature from the rest of the transaction data. 

This modification enhances the efficiency of signature verification and enables further optimization for transaction processing. 

The simplified SigHash algorithm contributes to the overall improvement of transaction speed on the Bitcoin Cash network.

• On-Chain Scaling

Bitcoin Cash advocates for on-chain scaling, emphasizing the importance of handling increased transaction volume directly on the blockchain. 

This approach contrasts with solutions like the Lightning Network, which aims to address scalability off-chain. 

On-chain scaling aligns with the belief that larger block sizes and an optimized blockchain are key to accommodating a growing user base without compromising transaction speed.