The Paradigmatic Case: Bitcoin Cash

In 2017, part of the community proposed increasing the block size to allow a greater number of transactions per second. This proposal clashed with those who defended keeping small blocks and scaling through off-chain solutions, such as Lightning Network.

The lack of consensus led to a hard fork:

  • The original chain retained the name Bitcoin (BTC).

  • The new version adopted the name Bitcoin Cash (BCH), with larger blocks and a more transactional orientation.

Both share the same history up to block 478559, but their approaches are substantially different.

Scalability

Layer 2 (Lightning Network)

On-chain scaling (large blocks)

Philosophy

Store of value

Everyday medium of payment

Governance

More decentralized

More concentrated among developers

Narrative

“Digital Gold”

“P2P electronic Cash”

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