Bitcoin Cash Specification
Bitcoin Cash is a decentralized cryptocurrency with a public distributed ledger. Transactions are validated and transmitted over the Bitcoin Cash peer-to-peer (P2P) network, and stored in the blockchain. Bitcoin Cash utilizes the Proof-of-work timestamping scheme with SHA-256 hash function, and targets a 10-minute block time. It also utilizes the secp256k1 parameters with ECDSA and Schnorr algorithm for digital signatures. The ticker symbol for Bitcoin Cash is BCH.
graph RL subgraph b0 [Block N-1] end subgraph b1 [Block N] hs1(Hash) ph1(Prev_Hash) ts1(Timestamp) mr1(Merkle Root) end subgraph b1_t [Merkle Tree] Hash0 Hash1 Hash2 Hash3 Hash01 Hash23 mr(Root) end subgraph b2[Block N+1] end classDef block fill: #AAA class b0,b1,b2 block b2 --> hs1 ph1 --> b0 mr --> mr1 Hash01 --> mr Hash23 --> mr Tx0 --> Hash0 Tx1 --> Hash1 Tx2 --> Hash2 Tx3 --> Hash3 Hash0 --> Hash01 Hash1 --> Hash01 Hash2 --> Hash23 Hash3 --> Hash23
Bitcoin Cash operates on the blockchain which is distributed among the Bitcoin Cash network. Transactions in Bitcoin are submitted to network nodes, which will validate the transaction against the transaction history in the blockchain. Once transactions are considered valid, they will be grouped into blocks through Merkle Trees. Through rigorous hash computation, blocks can be mined into the blockchain by the network nodes and are subsequently broadcast to the Bitcoin Cash network.
The blockchain serves as the public ledger for Bitcoin Cash. It consists of one single chain of blocks and each block contains the hash of its previous block. Due to the characteristics of hash functions, the content of any block cannot be altered without changes to all its subsequent blocks. The time and computation intensity of such change is near impossible. Therefore, the transaction history in the blockchain can be considered immutable even with public access.
The transactions on the Bitcoin Cash is pseudonymous. The blockchain does not keep records of coin ownerships for users. Instead, each transaction refers to the unspent outputs of previous transactions. The outputs of the transaction is then locked through locking scripts and whoever holds the correct unlocking scripts can use the outputs in their future transactions.
The Bitcoin Cash network is an ad-hoc decentralized network of volunteers, in which Bitcoin Cash transactions are transmitted and validated. Messages on the network are usually broadcast on a best-effort basis. The consensus of the blockchain is achieved through the proof-of-work mechanism, in which the chain with the most work is agreed on.