Bitcoin Cash wants to conquer the market with this upgrade
BCH’s success on the crypto market has been limited over the past few years. Many places were lost to competitors. Bitcoin Cash now wants to recapture the market with a new upgrade. Above all, they want to prove themselves against smart contract platforms.
Bitcoin Cash wants to conquer the market with this upgrade
Today, Bitcoin Cash ranks 30th among cryptocurrencies with a market cap of $2.2 billion. Since its launch in August 2017, this value has deteriorated significantly. At the time, the Bitcoin fork was in the top 10 with a total value of $5 billion.
Now Bitcoin Cash wants to retake the market with a new upgrade and take the Bitcoin protocol into new markets where it hasn’t been able to compete so far. The CashTokens CHIP upgrade implements smart contracts , allowing the creation of decentralized crypto exchanges and sidechains that can be accessed via token bridges.
CashTokens will be published in exactly seven days, on May 15 at 2:00 p.m.. The name of the upgrade was chosen because it allows the creation of fungible tokens, known on Ethereum as ERC-20 tokens.
According to developer Jayson Dreylehner, Bitcoin Cash is more than 1,000 times as effective as a smart contract platform as Ethereum because the blockchain is significantly more scalable. BCH isn’t the first Bitcoin fork looking to make its mark in the DeFi space.
Bitcoin Satoshi Vision (BSV) has already implemented smart contracts. However, in terms of market capitalization, BCH is about four times bigger.
“Cash tokens can be spent by anyone, and they can represent physical assets as well as serve directly as currencies, stablecoins, commodities, securities, debt instruments, gift cards, receipts, event tickets and more.” Explains thirteen to Bitcoin.com. He continues further:
“The underlying technology also enables far more advanced on-chain applications such as highly secure vaults [crypto vaults], decentralized exchanges and bridged sidechains.”
Smart Contracts on BCH offer a wide range of possibilities
Dreyehner also explains that smart contracts on Bitcoin Cash allow for a wide range of options. Ethereum is currently working on allowing such options on its own blockchain.
Specifically, the developer cites account abstraction as an example. In addition, fee-free smart contracts are possible, network fees are deterministic and MEV resistance is given. In addition, users are offered more privacy than is possible with Ethereum by default.
Based on the success of the blockchain, further scaling solutions could be introduced that could make it suitable for the masses. A separate version of the Lightning Network for BCH, which would take over the smart contract functionality, is conceivable.
BCH implements smart contracts despite using UTXO-based funds. Ethereum had opted for an account model because UTXOs were considered disruptive after experiences with Bitcoin.
However, BCH is not the only blockchain that decided against Ethereum’s approach. Cardano, for example, uses the so-called Extended UTXOs.
