Bitcoin Cash prepares for upgrade: nChain on 32MB blocks, OP_Code resurrection for smart contracts
nChain likes big blocks and they cannot lie.
May 15 is a big day for Bitcoin Cash supporters as the community prepares for the first of a series of big upgrades for the blockchain. The upcoming hard fork will trigger the following upgrades:
• Increasing the size of blocks on the Bitcoin Cash blockchain from 8MB to 32MB;
• Restoring certain OP_Codes for advanced functionality; and
• Increasing OP_Return data carrier limit to 223 bytes.
The 32Mb increase in block size will supposedly enable a capacity of 100 transactions per second, or 8.64 million transactions per day. This is a precursor to the Terab project’s long-term goal of scaling to 1 terabyte blocks—which would theoretically bring in 7 million transactions per second, or a whopping 604.8 billion transactions per day.
In a press release, Jimmy Nguyen, CEO of leading blockchain R&D company, nChain, comments:
“Increasing the Bitcoin Cash block size from 8MB to 32MB begins to ignite the true power of the BCH network, significantly increasing throughput capacity, in terms of the number of transactions that can fit into each block.It will also keep transaction fees very low – and thus ensure the BCH network has capacity to operate efficiently as usage continues to increase as the global peer-to-peer electronic cash. After this May 2018 upgrade, expect more steps toward massive on-chain scaling of the Bitcoin Cash network. We envision a future with massive block of 1 gigabyte (1000 MBs), and even 1 terabyte (1 million MBs), to achieve a powerful BCH data network that will re-invent how global business is done.”
Reinstating previously deactivated OP_Codes from the original code of Bitcoin, according to Nguyen, has huge implications for Bitcoin Cash as it unleashes smart contract and tokenisation capabilities that would bring Bitcoin Cash on the forefront of the industry.
“The second key upgrade is restoring certain OP_codes that had been deactivated in the Bitcoin script language. These OP_codes are being brought back to Bitcoin Cash to enable the ability for tokenisation and smart contract execution on the BCH network. This will be a game-changer in the cryptocurrency space because it makes Bitcoin Cash the clear leader, with the ability to do all in one coin-efficient payments and advanced technical functions such as tokenisation and smart contracts – what many other coins and blockchains separately claim to do. We at nChain and other groups have already been working on new tokenisation solutions to implement on Bitcoin Cash.”
The press release also states that the upgrades will enable Bitcoin Cash to do what Ethereum does.
“The restoring of certain OP_codes in the Bitcoin scripting language will bring advanced technical functionality to the Bitcoin Cash network. In computing, operating codes are the section of automated language which dictates what operation must be performed. The restored OP_codes will enable tokenisation and smart contracts to be executed on the BCH blockchain. More advanced functions will be possible with future upgrades to the Bitcoin Cash network.
Tokenisation – of financial instruments, assets, rewards, or for Initial Coin Offering (ICO) purposes – and the ability to make use of smart contracts, means that Bitcoin Cash can be used to do anything that other blockchains such as Ethereum, can do. Bitcoin Cash is already a superior payment system, because it is fast, low-fee and allows borderless transactions to anywhere in the world. With these additional technical capabilities, Bitcoin Cash can be the all-in-one coin.”
Given these improvements, Nguyen says it’s a win overall. “These changes will make BCH faster, stronger and more powerful. Win, win, win,” Nguyen says. Using a bit of wordplay, he adds: “Bigger blocks are the only way to make Bitcoin a viable payment option for daily transacting. That is why, here at nChain, we like big blocks and we cannot lie!”