This makes Bitcoin Cash a 'disinflationary' asset. The issuance rate is cut in half approximately every four years. The rate that new coins are added to the circulating supply gradually decreases along a defined schedule that is also built into the code. As a decentralized network, Bitcoin Cash users ultimately decide how the protocol evolves - and since it is not in the interests of participants to dilute their holdings by changing the protocol, the 21-million-coin limit will almost certainly remain in place forever. This is written into the code that defines the Bitcoin Cash protocol. The total supply of Bitcoin Cash will never exceed 21 million coins. More philosophically, these two use cases combine with the decentralized and open nature of the protocol to make Bitcoin Cash (the network) a method for supporting and enhancing global economic freedom. This makes it an effective alternative to payment networks like Visa and Mastercard.īitcoin Cash's above-described core features make it both a long-term store of value and a highly effective medium of exchange. Bitcoin Cash enables reliable, fast, and affordable transactions of any value and regardless of location (including cross-border transactions). This makes Bitcoin Cash a hard asset, like land or gold, providing an opportunity for people to store value in digital realm over long periods of time. Only 21 million coins will ever be created. The hardware and energy costs associated with PoW mining contribute to the security of the network along game-theory driven principles such that attacking the network is both prohibitively expensive and guarantees the attacker cannot profit directly. Through a process known as Proof of Work (PoW), 'miners' compete to add new blocks to the chain that constitutes the ledger (again, the blockchain). The technology deployed means that, once recorded in the blockchain, transactions effectively cannot be altered. This makes Bitcoin Cash a quasi-political system, with participants forming a kind of social contract. The protocol, however, can evolve as participants demand - although there is high-degree of consensus required to make changes. This consensus is what constitutes the 'truth' as to who owns what. Nodes follow a set of rules (a protocol) to achieve consensus on the state of the ledger. The public ledger (blockchain) is stored voluntarily by a network of participants known as 'nodes.' This helps to ensure the longevity of information. This allows anyone to easily see the full history of ownership, and helps to eliminate the potential for fraud. The ledger is updated at regular intervals in blocks that are connected to form a chain. All transactions are recorded on a global public ledger called the blockchain. This helps to ensure that Bitcoin Cash remains free to be used by anyone, without censorship. There's no CEO, and you don't need to ask for permission to use it. As such, it represents a fundamental redesign of the very nature of money. Bitcoin Cash is a decentralized peer-to-peer electronic cash system that does not rely on any central authority like a government or financial institution.
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