Bitcoin Cash (BCH) Overview: Faster, Cheaper, and More Scalable

LeeMaimai

/Oct 28, 2025

Key Takeaways

• Bitcoin Cash offers faster and cheaper transactions compared to Bitcoin.

• The network supports larger block sizes, allowing for higher throughput.

• Recent upgrades like CashTokens enhance the functionality of BCH.

• BCH is ideal for everyday spending, remittances, and micro-payments.

• A hardware wallet is recommended for secure storage of BCH.

Bitcoin Cash was born to be peer‑to‑peer electronic cash: everyday payments that feel instant and cost almost nothing. In contrast to Bitcoin’s conservative throughput, BCH embraces on‑chain scaling with larger blocks, streamlined transaction formats, and a development cadence focused on usability. This article explains how BCH achieves speed and low fees, what’s new across 2024–2025, where it fits in the broader crypto landscape, and how to hold it safely.

What is Bitcoin Cash?

Bitcoin Cash is a proof‑of‑work blockchain that shares Bitcoin’s 10‑minute block schedule and UTXO model but raises the block size limit to enable higher throughput and lower fees. The network’s block size ceiling is 32 MB, compared to Bitcoin’s ~1–4 MB range, enabling much more transaction capacity per block and making micro‑payments feasible during peak usage. See the project overview on BitcoinCash.org and background on the design trade‑offs on Wikipedia for more context. Reference: BitcoinCash.org overview; Bitcoin Cash block size on Wikipedia.

Bitcoin Cash overview: see What is Bitcoin Cash on the official site.
Design and history (including the larger block size): see Bitcoin Cash on Wikipedia.

Category	Project / Token	Description	Why It Matters in 2025	References
Layer 2 Payments	Lightning Network	A channel-based Bitcoin payment network for fast, low-fee transactions	Still the dominant BTC micro-payment solution in 2025	KuCoin Learn; BingX
Sidechain	Liquid Network (Blockstream)	A sidechain for exchanges and institutions, offering faster settlement and confidential assets	Supports token issuance and faster trading within BTC ecosystem	ASIC Marketplace; Samara
Smart Contract Layer	Stacks (STX)	Connects smart contracts to Bitcoin via Proof of Transfer (PoX)	Core to the “BTCFi” trend and expanding Bitcoin’s programmability	BingX; Samara
EVM-Compatible Layer	Rootstock (RSK / RIF)	Brings Ethereum-compatible DeFi to Bitcoin via merged mining	Key bridge for EVM tools and BTC-backed DeFi	BingX; Samara
Fungible Tokens	BRC-20 (e.g., ORDI, SATS)	Ordinals-based fungible token standard on Bitcoin	ORDI remains a leading token; SATS active in microeconomy	CoinGecko; Gate.io; Bullish; CoinMarketCap
Fungible Tokens (New)	Runes Protocol	A 2024-born protocol for native UTXO tokens on Bitcoin	Simpler and more efficient than BRC-20, rapidly growing in 2025	Trust Wallet; Ledger Academy; Tangem; Sovryn

How BCH delivers faster, cheaper payments

On‑chain scaling with larger blocks. Bigger blocks directly increase space for transactions, which keeps average fees low even when activity spikes. For a data point you can track, see the dynamic average transaction fee chart for BCH on BitInfoCharts.
Efficient signatures. BCH activated Schnorr signatures in 2019, reducing signature data size and enabling cleaner multi‑signature patterns, which further improves efficiency and paves the way for future optimizations. Reference: Schnorr activation on Reference.cash.
Simple, SPV‑friendly payments. BCH maintains a straightforward scripting system designed for rapid verification by lightweight wallets, supporting quick payment flows for merchants and mobile users. See the general getting‑started resources for merchants and users on BitcoinCash.org.

In practice, most BCH transactions cost a fraction of a cent and confirm within the next block; many real‑world payments are accepted instantly with standard risk controls used by merchants. For real‑time network conditions and fees, explorers like Blockchair’s Bitcoin Cash dashboard provide live data.

Upgrade highlights and technical milestones

BCH uses a predictable, consensus‑driven upgrade process that has introduced several notable features over the years:

Canonical Transaction Ordering (CTOR). Introduced to simplify block validation and scaling by enforcing a defined transaction ordering within blocks. Reference: CTOR on Reference.cash.
Schnorr signatures. More compact and flexible signatures that marginally reduce transaction size and enable more expressive constructions. Reference: Schnorr on Reference.cash.
ASERT difficulty adjustment algorithm. Stabilizes block times and improves responsiveness to hashrate changes, enhancing network reliability. Reference: ASERT DAA on Reference.cash.
CashTokens (2023). A native token and smart‑contract primitive for issuing fungible and non‑fungible tokens on BCH, enabling DEXs, stablecoins, and application‑specific contracts with covenant‑style logic. Reference: CashTokens.org.

Development discussions, proposals, and CHIPs (Cash Improvement Proposals) are coordinated in public forums such as Bitcoin Cash Research, where you can follow the roadmap and upcoming network changes.

2024–2025 snapshot: what users care about now

Post‑halving dynamics. Bitcoin Cash underwent its scheduled halving in April 2024, reducing miner rewards from 6.25 to 3.125 BCH per block. You can review countdowns and historical halving data on CoinWarz’s BCH halving tracker for context and expected timing of future events.
Fees remain low. Even during periods of elevated interest across crypto, BCH fees typically remain tiny compared with congested chains. You can monitor average fees and trends on BitInfoCharts’ BCH fee dashboard.
Tokens and on‑chain apps. With CashTokens live, the BCH ecosystem has seen growth in on‑chain tokens, stablecoin experiments, and DEX tooling, all while staying on‑chain without additional layers. Learn the design and security model at CashTokens.org.
Merchant adoption pathways. Payment processors and commerce platforms continue to support BCH for low‑fee settlements. For a merchant‑focused primer, see BitPay’s explainer on BCH payments.

Where BCH fits: payment rails, remittances, and micro‑economies

Bitcoin Cash excels in scenarios where cost and settlement finality matter:

Everyday spending and small purchases, where a few cents in fees would be material.
Cross‑border remittances where low fees and fast settlement times offer tangible savings.
Tipping, pay‑per‑use content, or machine‑to‑machine micro‑payments.
On‑chain token issuance and app‑specific logic via CashTokens without relying on external layers.

Risks and trade‑offs to understand

Bandwidth and propagation. Larger blocks demand more bandwidth and efficient propagation from nodes and miners. The trade‑off is a classic piece of the blockchain trilemma; higher throughput can increase operational requirements for nodes. For background, see the blockchain trilemma overview on Binance Academy.
Hashrate and profitability cycles. Post‑halving economics and BTC price cycles can influence miner allocation between BCH and other SHA‑256 chains. You can monitor BCH hashrate and difficulty on CoinWarz’s BCH hashrate page.
Token and app risk. While CashTokens enables flexible on‑chain assets, token projects carry market, smart‑contract, and issuer risks. Always research issuers and understand contract upgradeability or redemption terms before transacting.

None of this is financial advice; evaluate your own risk tolerance and do your own research.

Getting started with BCH (the right way)

Acquire BCH on a reputable exchange, then withdraw to self‑custody. On‑chain withdrawals put you in control of keys and reduce counterparty risk.
Verify addresses and small test sends. Send a small amount first to confirm you control the destination wallet.
Understand fees and UTXOs. Consolidate small outputs when fees are low and keep a tidy set of UTXOs; it improves privacy and reduces future fees.
Consider privacy tools when appropriate. BCH users sometimes use CoinJoin‑style protocols like CashFusion to improve transaction privacy. Read the security model and trade‑offs on the CashFusion site before using.
Back up your seed phrase securely. Store it offline; never type it into a website or share it with anyone.

Why a hardware wallet helps — and where OneKey fits

If you plan to hold BCH beyond short‑term spending balances, a hardware wallet adds a strong layer of protection:

Offline key storage and transaction signing protect against malware on everyday devices.
Clear‑signing and address verification on a secure screen help prevent man‑in‑the‑middle attacks.
Passphrase and multi‑account support reduce single‑point‑of‑failure risks.

OneKey supports BCH with offline signing, open‑source firmware and apps, and an intuitive flow for verifying receive addresses before you move funds. For BCH users experimenting with CashTokens, OneKey’s multi‑chain support and watch‑only mode in the companion app make it straightforward to monitor balances and interact via compatible software while keeping keys offline. Set up your device, verify your address on the screen, run a small test transaction, and only then migrate larger balances.

Final thoughts

Bitcoin Cash focuses relentlessly on being spendable money: fast, low‑fee, and simple to use. With recent upgrades like CashTokens and steady fee dynamics even through broader market cycles, BCH continues to offer a pragmatic payment rail for merchants, remitters, and micro‑app builders. If that matches your use case, pair BCH’s on‑chain scalability with solid key management. A hardware wallet such as OneKey gives you offline control, clear‑signing, and peace of mind while you take advantage of BCH’s faster and cheaper transactions.