Bitcoin Cash upgrade adds new functions and maybe lower fees

Anthony Caruana 16 May 2018 NEWS

It's time for miners to upgrade their rigs and nodes as BCH steps things up.

The Bitcoin Cash (BCH) network has increased its block size to 32MB from 8MB. The change to the Bitcoin Cash consensus rules means the network will be able to process transactions through the network faster than before with lower transaction fees. For example, when the network shifted from 2MB to 8MB last August, a single 8MB block was able to process 37,000 transactions at the same time.

For this change, and for the others changes that were part of this upgrade to BCH, new consensus rules needed to come into effect. These came into effect at 1:53EDT, or 3:53pm in Melbourne and Sydney. The change was expected with mining clients receiving upgrades over recent weeks in anticipation of the change.

The move to 32MB truncation blocks means the blockchain should be able to handle increased transaction volumes for quite some time.

In addition to the increase in block size, the Default Data Carrier Size has been boosted to 220 bytes from its previous 80-byte threshold.

Bitcoin.com explains that the increase in this element will enable a script code called OP_Return to be used to enable "meta-protocols" over the blockchain which, in turn, will enable other innovations to take place.

The changes have also enabled the inclusion of “Satoshi OP_Codes" which had previously been disabled. These codes allow operations that can be programmed using the Script language to carry out mathematical operations and string managing techniques. It's anticipated that the codes will facilitate the implementation of new functionality to the Bitcoin Cash network.

An official announcement details which codes will be enabled as well as other information pertaining to the upgrade.

The implementation of the upgrade doesn't seem to have had any effect on BCH's price as it seems to be tracking with the rest of the market.

Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.
Ask a question
Go to site