The prices of Bitcoin Cash (BCH) surged by up to 6% in anticipation of a major upgrade to its mainnet. This upgrade will enable developers to create tokens on the network and introduce other improvements.
According to Wu Blockchain, the upgrade’s primary addition is the CashTokens issuance token mechanism, similar to ERC20. The upcoming upgrade of the Bitcoin Cash network, set to take place on May 15, will allow for the creation of smart contracts that are “comparable to Ethereum” but significantly more efficient, as stated by Jason Dreyzehner, a developer of BCH.
As per the Network update Specification document, the Bitcoin Cash network will alter for its update on May 15. The activation of CHIP-2021-01 Restrict Transaction Version, CHIP-2021-01 Minimum Transaction Size, CHIP-2022-02 CashTokens, and CHIP-2022-05 P2SH32 are among the modifications.
Bitcoin Cash’s upcoming May hard fork aims to enhance the security and privacy of the network. Developers plan to introduce “CashTokens” through this upgrade, allowing decentralized applications to operate directly on the Bitcoin Cash platform.
Bitcoin Cash Upgrade To Bring Smaller Transactions And Smart Contracts For Applications
Additional suggested enhancements have already been confirmed, such as reducing transaction sizes, which can improve transaction speed, and introducing smart contracts functionality. This could enable the development of Bitcoin Cash-based applications that provide various services to users, such as recurring payments, derivatives trading, and crowdfunding opportunities.
This progress results from the increasing attention on tokens issued on Bitcoin. One example is the newly-launched ‘Bitcoin Request for Comment’ (BRC20) tokens.
With the introduction of these standards, developers can now create tokens and DeFi applications natively on Bitcoin. This has led to the creation of various digital artwork and meme tokens built on the Bitcoin network in recent weeks.
According to OrdSpace, a platform that monitors BRC-20 data, more than 11,000 tokens have been issued on the Bitcoin network. They are currently available for trading on the open market as of Monday. These tokens have a combined market capitalization of $500 million, lower than the $1.5 billion figure reported earlier this week.
Bitcoin Cash Market Movement
Bitcoin Cash (BCH) is attempting to break free from a bearish trend that has been suppressing its price for several months. The price of BCH has been showing signs of improvement lately, with a series of higher highs and higher lows being established since last November when it gained support from buyers around the $90.00 mark.
Currently, Bitcoin Cash (BCH) is consolidating near the demand zone, despite the efforts of sellers to push its price lower. BCH is trying to bounce back from the trend line at $120, which could indicate a bullish trend soon.
At the time of writing, Bitcoin Cash trades at $119.50, with a 24-hour trading volume of $128,078,209. In the last 24 hours, Bitcoin Cash has gained 5.42%. With a live market cap of $2,330,935,311
Related Reading: | Cardano Continues To Soar With Node Upgrade, Lace Improvements, & More |