Bitcoin Cash Network Undergoes a Major Upgrade
On May 15, the Bitcoin Cash (BCH) network underwent a significant upgrade, a move that now allows developers to create tokens similar in properties to BCH itself. These newly introduced tokens, known as “CashTokens,” can be issued by anyone using the network.
Block Height 792,772: A New Era for Bitcoin Cash
The network successfully upgraded the blockchain at the block height of 792,772. Jason Dreyzehner, a renowned BCH developer, stated that this upgrade includes support for CashTokens. Dreyzehner sees these tokens as a “tool for expanding financial access,” providing a new avenue for financial inclusion.
CashTokens: More than Just a Currency
CashTokens are predicted to have various applications, from serving as payment stablecoins and commodities to functioning as gift cards and event tickets. Dreyzehner also emphasized that the underlying technology of these tokens could enable advanced on-chain applications, including decentralized exchanges (DEXs), security vaults, and bridged sidechains.
Price Movements and Market Responses
The BCH price experienced a surge on the day of the upgrade, with tokens going from $114 to a high of $120 on May 15. However, this price surge was short-lived, as the value almost instantly returned to the $113 to $114 range post-upgrade.
Bitcoin Cash and the Rise of BRC-20 Tokens
The introduction of CashTokens follows the increasing popularity of BRC-20 tokens, which surpassed a market capitalization of $1 billion on May 9. The exponential growth of these tokens, such as Ordi (ORDI), Nals (NALS), VMPX (VMPX), Pepecoin (PEPE), and Meme (MEME), has been fueled by the creation of the Bitcoin token fungibility protocol two months ago.
Challenges Following the Upgrade
While the upgrade has been met with much anticipation and excitement, it has also brought about new challenges for the network. CryptoQuant analyst Axel Adler highlighted on May 10 that increased fees and a backlog of transactions have become a significant issue for the Bitcoin network following the introduction of the new token standard.