How does Bitcoin Cash work?

Bitcoin Cash (BCH) is a cryptocurrency that was created in August 2017 as a hard fork of the original Bitcoin (BTC).

It was created to increase the block size limit of Bitcoin from 1MB to 8MB, allowing for more transactions to be processed on the network. The main purpose of Bitcoin Cash is to provide a more efficient and cost-effective way for users to send and receive payments. It also allows for faster transaction times, lower fees, and increased scalability.

Bitcoin Cash works by using a proof-of-work consensus algorithm. This means that miners must solve complex mathematical problems in order to add new blocks of transactions to the blockchain. When miners successfully add a new block, they are rewarded with newly minted BCH coins.

This process is known as mining. In addition, Bitcoin Cash uses a system called Segregated Witness (SegWit) which helps reduce transaction fees and speeds up transaction times by separating signature data from transaction data. This helps reduce the amount of data that needs to be stored on the blockchain, making it more efficient and cost-effective for users.

Finally, Bitcoin Cash also has replay protection which prevents transactions from being replayed on both chains after a hard fork occurs. This helps ensure that users can safely transact on either chain without worrying about their funds being stolen or lost due to replay attacks.