Bitcoin Cash has overtaken Litecoin to fourth position, gaining another circa 7% today after rising from $80 at the beginning of the year to now $300.
No spartan memes in BCH foras, but trading volumes have now risen to $1.3 billion, higher than XRP, with Bitcoin Cash gaining a market cap above $5 billion.
The cryptocurrency has seen on-chain transactions rise from about 10,000 to a high of 55,000, now standing at circa 40,000.
It has moved on-chain $1 billion worth of BCH, with $700 million of it moved by the 100 largest transactions at rock bottom fees.
The reason for this resurgence might be because Bitcoin Cash has recently shown to have some capable developers.
In a recent press conference, Vitalik Buterin, eth’s inventor who is known to have some BCH as well as BTC, said he was surprised to learn Bitcoin Cash is to implement Schnorr Signatures before Bitcoin Core. I thought their devs were jokers, Buterin said, but no they have some skilled developers.
They have recently launched a Simple Ledger Protocol (SLP) for tokens. As you know bitcoin, and thus Bitcoin Cash, has a very simple programming language with the project stating:
“You can think of SLP as a ‘transaction within a transaction’. SLP transactions live within a special output known as OP_RETURN, which is a part of a standard Bitcoin Cash transaction.
If Alice wants to send Bob some tokens, she sends a minimal (dust) amount of BCH, and the transaction also contains the data to transfer the tokens.”
In other words, it’s just a simple token that just moves and keeps accounts of balances, same as Stellar’s capabilities, with neither having a Virtual Machine like ethereum does.
Close to 1,000 BCH tokens have now been create with Roger Ver’s favorite so far being Liberland Merits (LLM). This is the currency of Liberland, an aspiring micro-state by the river Danube in Europe.
Liberland Merits have now reached a market cap of $1 million after trading for $1 each on a small crypto exchange called Altilly.
These tokens could potentially be a reason for the rise in transactions. Since fees, albeit small, are paid in BCH, then that might have led to some demand for what some call the real bitcoin.
There are many other developments at the protocol level, including Xthinner by Jonathan Toomim, a miner dev and a long-time supporter of on-chain scaling.
Xthinner is a compression method to reduce the amount of information transferred by 98.5%. So a 100MB block would need to only send about 1MB of data across the network and to all nodes, so solving the bandwidth problem, latency, and much of the rest, but not storage.
Storage is becoming very cheap however, but it may be the case public blockchains have no option, but to prune unneeded data such as very old history.
Doing so in a trustless manner is a difficult problem which Péter Szilágyi is trying to address in ethereum. We’re not sure if any other dev is doing the same in the top blockchains.
Overall, scalability is being tackled on all fronts. While eth is ahead in implementing sharding and the rest, BCH can no longer be discounted as months of work now bear some fruit.