On 15 May at 4 pm, the Bitcoin Cash network conducted a hard fork. The software upgrade brings old functions back into the BCH ecosystem and increases the block size to 32 megabytes.
The Bitcoin cash community planned a hard fork for May 15. The update was successful for Bitcoin Cash. Bitcoin Cash itself was created by a hard fork of the Bitcoin network on August 1, 2017.
A higher block limit
The biggest novelty of the Hard Fork was the fourfold increase of the block size. In August 2017 Bitcoin Cash had already raised the limit from 1 MegaByte to 8 MegaByte. Now these 8 MegaByte have been increased to 32 MegaByte. This should enable the Bitcoin Cash network to process over 60 transactions per second. With an average transaction size of 200 bytes, a block can therefore contain 160,000 transactions. This means that over 20 million transactions can now take place every day.
Currently there are about 20,000 transactions per day on the Bitcoin Cash Blockchain. Daily capacity is currently only 0.087 percent exhausted.
However, critics repeatedly point out that increasing the block size can lead to centralization. This increases the cost of running a full node and the distribution of mixed blocks is delayed (one MegaByte is downloaded faster than 32 MegaByte). Currently more transactions are processed in the Bitcoin network than in Bitcoin Cash.
In addition to the increased block size, the Bitcoin Cash Hard Fork also activates scripting commands such as OP_GROUP and OP_RETURN. OP_GROUP can be used to create your own tokens on the BCH blockchain itself. This means that Bitcoin Cash has a similar functionality to Ethereum. With OP_RETURN you can store additional information on the blockchain. This function could be used for Smart Contracts in BCH.
The price after the Hard Fork
Even though there was a lot of excitement about the hard fork in the Bitcoin Cash ecosystem, the price reacted negatively to the software upgrade and fell by about ten percent. However, we must not forget that the BCH price quickly doubled in April. However, the price level remained stable above the USD 1,000 mark.