For many people, there is still a lot of uncertainty around digital currencies and blockchain technology.
A blockchain is a cutting-edge ledger-recording technology that is used to handle, verify, and store transactions involving virtual currencies like Bitcoin. It makes ledgers far more difficult to manipulate because it’s a majority-rule player that confirms the reality of what has occurred, rather than being verified by only a singular source. This network is also decentralized; it is present on computers all around the world.
Bitcoin (BTC)
Since its beginning, there have been doubts about Bitcoin’s capacity for efficient scaling, especially when taking into consideration investment opportunities.
The Bitcoin network’s blockchain technology has a speed issue, especially when compared to institutions that process credit card transactions. Well-known credit card businesses can process an average of 564 million transactions daily, or around 6,527 transactions per second.
How many transactions per second is the Bitcoin network able to handle? The answer is 4.43 per second as of January 31st, 2022.
It can take anywhere from under a minute to several minutes. And since there is a growing number of users on the Bitcoin network and no innovation or upgrades have been made to the underlying technology, the waiting time simply grows longer as time goes on.
The Big Issue
Because there are more transactions to process without a change in the underlying technology that processes them, waiting times have been longer as the network of Bitcoin users has expanded.
The central issue of scaling and accelerating the transaction verification process has been the subject of ongoing discussions over Bitcoin’s technology. The two main remedies that developers and bitcoin miners have proposed to this issue are: (1) creating blocks with smaller capacities for data for faster transactions or (2) creating bigger blocks that can process more data at one time.
Bitcoin Cash (BCH)
Bitcoin Cash was the solution developed to answer these issues, which was founded by developers and Bitcoin miners who shared a concern for the future and scalability of the digital currency.
BCH has a unique blockchain and set of specifications, which includes a crucial distinction from bitcoin. With a configurable level of difficulty to assure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it, BCH added an enhanced block size of 8 MB to speed up the verification process.
As a result, wait times are reduced and transaction processing costs are frequently lower on the Bitcoin Cash network than on the Bitcoin network. Compared to the Bitcoin network, the Bitcoin Cash network can process much more transactions per second. However, the quicker transaction verification time also has drawbacks. One possible drawback of BCH’s greater block size is that security in relation to the Bitcoin network might be jeopardized. BCH users may discover that liquidity and real-world usability are lower than they are for Bitcoin, which is still the most widely used cryptocurrency and the largest by market capitalization.
What the future holds
Financial investment companies in Dubai have already taken note of the shift to digital currencies. Some investment firms have started offering services in this niche field to their clients, especially after laws in Dubai have eased.
To know more about the best investment option available to you, reach out to expert financial advisors at AIX Investment, a top investment company in Dubai.
