What are the key differences in the consensus algorithms of Bitcoin (BTC) and Bitcoin Cash (BCH)?

1 answers

• Nov 27, 2021 · 3 years ago
  Bitcoin (BTC) and Bitcoin Cash (BCH) have different consensus algorithms, which determine how transactions are validated and added to the blockchain. BTC uses the Proof of Work (PoW) algorithm, where miners compete to solve complex mathematical puzzles to earn the right to add new blocks. This algorithm is resource-intensive and requires significant computational power. On the other hand, BCH uses a modified version of PoW called the Emergency Difficulty Adjustment (EDA) algorithm. This algorithm adjusts the difficulty of mining based on the number of miners in the network, making it easier to mine blocks. While PoW ensures the security of BTC, it also limits its scalability. The EDA algorithm allows BCH to scale more easily, but it may compromise the security of the network. Overall, the consensus algorithms used by BTC and BCH have different trade-offs between security and scalability.
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