How do approaches to global adoption differ in BTC and Bitcoin Cash?

From its inception, Bitcoin proponents harbored grand visions for global adoption. However, since Bitcoin (BTC) and Bitcoin Cash (BCH) split in 2017, their diverging approaches to achieving this goal differ significantly.

BTC's approach involves a bounded base layer, restricting block size to around seven transactions per second. BTC enthusiasts acknowledge that global adoption on the base layer is unlikely and look to the Lightning Network (LN) as the primary solution. The LN aims to overcome base layer limitations by creating a network of payment channels. Despite these ambitions, the LN faces challenges like liquidity issues, routing complexities, bugs, and attack vectors, making it an impractical path to global adoption within a reasonable timeframe. Some BTC proponents even advocate for custodial solutions, potentially recreating issues from the existing financial system.

Bitcoin Cash adheres to the original vision of global adoption by maintaining a focus on scaling at the base layer. Bitcoin Cash aims to accommodate the entire global population of users, envisioning a scalable future without a set block size cap. The mining clients incorporate a user-configurable excessive block size, currently set at 32 MB. Bitcoin Cash's scalability vision extends to exploring much larger blocks, such as 256 MB and 1 GB, with optimism that ongoing technological advancements will pave the way for achieving global-scale adoption.

In May of 2024, Bitcoin Cash will activate an adaptive block size limit algorithm. This algorithm will constantly adjust the block size, with a baseline of 32 MB, as the needs of the network evolve. The update will allow the block size on Bitcoin Cash to grow as much as 2x per year.

Bitcoin Cash remains committed to the principles of sound money, ensuring it is held directly by users, without reliance on intermediaries.

Learn more in our deep dive into the differences between BTC and Bitcoin Cash.