Bitcoin (BTC) and Bitcoin Cash are the two primary varieties (BCH). The most popular and original form of Bitcoin is called BTC, while BCH is a fork of BTC that was made in 2017.
Both are decentralised digital currencies, but their protocols and mining algorithms differ. Additionally, several additional kinds of “altcoins,” or cryptocurrencies based on Bitcoin, have been developed over time. Among them are Bitcoin SV, Bitcoin Diamond (BCD), and Bitcoin Gold (BTG) (BSV).
Foundation of Bitcoin
The original Bitcoin, often known as “Bitcoin Core,” is represented by the symbol BTC. To process and validate transactions, it makes use of a proof-of-work consensus method and a decentralised ledger technology known as blockchain. The 21 million coin maximum supply for BTC is mined using the SHA-256 algorithm.
A fork of Bitcoin called Bitcoin Cash (BCH) was developed in 2017. It was developed to address BTC’s scalability problems, with the aim of boosting the block size limit and enhancing transaction processing speed. BCH makes use of a modified blockchain and a proof-of-work consensus algorithm. This cryptocurrency employs the SHA-256 mining method and has a maximum supply of 21 million coins.
Types of Bitcoin
A fork of Bitcoin called Bitcoin Gold (BTG) was developed in 2017. By employing a new mining method (Equihash) that is resistant to ASIC mining gear, it seeks to increase mining’s decentralisation. A new replay protection mechanism was also included by the Bitcoin Gold developers to stop unintentional transactions from being made on the incorrect chain following a fork and managing crypto portfolio.
A fork of Bitcoin called Bitcoin Diamond (BCD) was developed in 2017. By expanding the total number of coins from 21 million to 210 million and introducing a new mining method, it seeks to alleviate the problem of high transaction costs (X13). By utilising a novel encryption technique, it also seeks to enhance security and privacy.
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A split of Bitcoin Cash called Bitcoin SV (BSV) was made in 2018. By raising the block size restriction to 128MB and eliminating the block size limit entirely, it seeks to bring back the original idea of Bitcoin as a digital money for regular usage. A new replay protection mechanism was also included by the Bitcoin SV developers to stop unintentional transactions from being made on the incorrect chain following a fork and tax levied.
The “optimal” Bitcoin kind can’t be determined objectively because it varies on each person’s demands and tastes. What may be regarded as the greatest for one person may not be the best for another because each sort of Bitcoin has its own unique set of characteristics and objectives.
The first iteration of Bitcoin, known and used the most commonly is Bitcoin (BTC). It has the greatest proven network impact and the longest track record. Among all cryptocurrencies, it also boasts the most trading pairs and is the most liquid.
A fork of Bitcoin called Bitcoin Cash (BCH) intends to increase the block size limit in order to boost transaction processing capacity and speed.
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Binocs, a platform for tracking cryptocurrency portfolios and tax on cryptocurrency in india, has announced raising $4 million in a seed round from international institutional investors led by BEENEXT, as well as Arkam Ventures, Accel, Saison Capital, Premji Invest, Blume Ventures, and Better Capital. It is also backed by cryptocurrency-native angel investors from the US and India.
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