Bitcoin Cash came out of the need to speed up transaction times on the Blockchain. The Blockchain is the global interlinked ledger that records every Bitcoin transaction. Unfortunately, inefficiencies in the Blockchain were starting to create chokepoints in the protocol that were beginning to cause problems with transactions.
In some cases, mining fees for sending Bitcoin in early 2017 were through the roof, making it impractical for anyone to use the currency. In December of 2017, the cryptocurrency reached a peak in transaction fees of $55. That’s a staggering cost of using Bitcoin. On top of that, problems with transaction times also started to cause issues. Some transactions were taking as long as 2-days to confirm on the Blockchain in 2017.
In later 2017, it was clear that Bitcoin was running into some serious issues.
To compensate, developers decided to create a new Bitcoin product born out of the original protocol. Bitcoin Cash was to feature 8MB blocks over Bitcoin Originals 1MB blocks. As a result, both transaction costs and timeframes would improve dramatically.
Today, BTC transaction fees are around $1, and it averages around 4-hours for a transaction to process. That’s partially thanks to the implementation of the Bitcoin Cash protocol that cleared up plenty of the problems affecting the leader of the cryptocurrency sector.