In this post we are going to discuss what is smartBCH. And how does this sidechain works and how it is beneficial for both investors and users of the Bitcoin Cash.
Image Credit: smartBCH
For those who are using Noisecash or Readcash, I am sure you have heard of the smartBCH testnet news few months back. Now that testnet is released and many dApps and the DeFi apps are likely to be released on this sidechain.
So let's first discuss what is smartBCH and how it benefits us.
What is smartBCH?
SmartBCH also smart bitcoin cash is a side chain designed to solve the gap in the feature set of the bitcoincash. Earlier in the mainnet there was no way for the possibility of smart contract. There were no means for making dApps and the DeFi hubs. So now that smartBCH is deployed the developers and the projects can deploy their dApps and DEFI on this sidechain.
What are the benefits of the smartBCH?
Here are some of the things that are now possible with the smartBCH.
- Ability to communicate between the sidechains using smartBCH messaging.
- It is compatible with Ethereum Virtual Machine and Web3 API
- Short block interval has designed to support for DEFI apps
- Sidechain miners will vote and elect validators for more rewards.
- Like Polkadot, smartBCH can allow more sidechain under ecosystem.
Feature of sidechain talking to each other single mainnet chain and then using the two way trustless custodian payment gateway for BCH transfer among them would be a good feature. Currently Polkadot masters this feature. As of now we don't know if the sidechains under smartBCH would be getting the slot like Polkadot or if anyone is allowed to pick up the place. We will see that in near future I assume.
How does this help Bitcoin Cash?
Unlike BTC and ETH, you may notice that you have very low amount of fees in the BCH ecosystem. More sidechains and the dApps being developed would increase the supply and demand in the ecosystem which in turn helps process more transactions for lesser cost. This helps many other blockchains to make use of the BCH for it's low cost transactions.
What to expect from smartBCH?
Bitcoin Cash is now moving ahead of being just a currency and it is now opening itself up for the DEFI and the dApps. Which any strong blockchain should do in the near future. Ability to connect with the other side chains, smart contracts and the faster transactions just getting better with the Bitcoin Cash.
I have BCH in my portfolio and it's not a big amount so I am just holding out on the hopes that it would get better after the smartBCH release. I am sure that it would have it's few quirks but considering it is meant to address my own concern and it's beneficial for me and others who choose to invest in it, then it has served it's purpose.
If you have any ideas on the future of the smartBCH, feel free to let me know about it in the comments.