May 3, 2018
Protocol upgrade set to take Bitcoin Cash to next level
On May 15, the Bitcoin Cash (BCH) network will undergo a protocol upgrade which will see the following three key changes:
- Increasing the size of blocks on the Bitcoin Cash blockchain from 8MB to 32MB;
- Restoring certain OP_Codes for advanced functionality; and
- Increasing OP_Return data carrier limit to 223 bytes.
This combination of upgrades will bring significantly greater capacity and functionality to the Bitcoin Cash network. The upgrade makes the Bitcoin Cash (BCH) block size significantly larger than Bitcoin Core (BTC)’s small 1 MB block, ensures BCH network usage can rapidly grow while maintaining throughput capacity to process greater volumes of transactions, at fast speeds and with very low transaction fees. The re-enabled OP_Codes are key to enabling technical tokenisation, smart contracts and other advanced technical functions. This protocol upgrade is the next step for the evolution of Bitcoin Cash, and will bring us closer to universal adoption as the drive towards a true bCommerce world picks up in earnest.
Post-upgrade, Bitcoin Cash becomes the “all-in-one” blockchain, providing an all-in-one coin that can service payment and advanced technology needs for major enterprises and individual users globally.
Jimmy Nguyen, CEO of leading blockchain R&D company, nChain, comments:
“Increasing the Bitcoin Cash block size from 8MB to 32MB begins to ignite the true power of the BCH network, significantly increasing throughput capacity, in terms of the number of transactions that can fit into each block. It will also keep transaction fees very low – and thus ensure the BCH network has capacity to operate efficiently as usage continues to increase as the global peer-to-peer electronic cash. After this May 2018 upgrade, expect more steps toward massive on-chain scaling of the Bitcoin Cash network. We envision a future with massive block of 1 gigabyte (1000 MBs), and even 1 terabyte (1 million MBs), to achieve a powerful BCH data network that will re-invent how global business is done.”
“The second key upgrade is restoring certain OP_codes that had been deactivated in the Bitcoin script language. These OP_codes are being brought back to Bitcoin Cash to enable the ability for tokenisation and smart contract execution on the BCH network. This will be a game-changer in the cryptocurrency space because it makes Bitcoin Cash the clear leader, with the ability to do all in one coin-efficient payments and advanced technical functions such as tokenisation and smart contracts – what many other coins and blockchains separately claim to do. We at nChain and other groups have already been working on new tokenisation solutions to implement on Bitcoin Cash.”
“These changes will make BCH faster, stronger and more powerful. Win, win, win.”
“Bigger blocks are the only way to make Bitcoin a viable payment option for daily transacting. That is why, here at nChain, we like big blocks and we cannot lie!”
Digging deeper into the upgrades
The restoring of certain OP_codes in the Bitcoin scripting language will bring advanced technical functionality to the Bitcoin Cash network. In computing, operating codes are the section of automated language which dictates what operation must be performed). The restored OP_codes will enable tokenisation and smart contracts to be executed on the BCH blockchain. More advanced functions will be possible with future upgrades to the Bitcoin Cash network.
Tokenisation – of financial instruments, assets, rewards, or for Initial Coin Offering (ICO) purposes – and the ability to make use of smart contracts, means that Bitcoin Cash can be used to do anything that other blockchains such as Ethereum, can do. Bitcoin Cash is already a superior payment system, because it is fast, low-fee and allows borderless transactions to anywhere in the world. With these additional technical capabilities, Bitcoin Cash can be the all-in-one coin.
Matthew Gilleard (Infinite Global, EMEA)
+44 207 269 1430