• Bitcoin Cash (BCH) prices jumped ahead of a mainnet upgrade that will allow developers to issue tokens atop the network.
• The upgrade is scheduled for about noon time UTC on Monday and is set to bring added security and privacy, smaller transaction sizes and smart contracts functionality.
• Recently-launched ‘Bitcoin Request for Comment’ (BRC20) tokens have spurred a collection of digital artwork and meme tokens built on Bitcoin in recent weeks.
What Is Bitcoin Cash?
Bitcoin Cash (BCH) is a peer-to-peer electronic cash system that allows users to send payments directly from one party to another without going through a financial institution. It also offers low transaction fees, fast confirmation times, optional privacy features, and more.
What Is the Upgrade?
The upcoming Bitcoin Cash mainnet upgrade is set to go live at noon UTC on Monday. This upgrade will allow developers to issue tokens atop the network, among other enhancements such as improved security and privacy, smaller transaction sizes, and smart contracts functionality.
What Are BRC20 Tokens?
BRC20 tokens are standards that allow developers to issue tokens – as well as decentralized finance applications – natively on Bitcoin. These recently launched standards have sparked the creation of digital artwork and meme tokens built on Bitcoin in recent weeks. As of Monday, there are over 11,000 available BRC20 tokens with a cumulative market capitalization of $500 million USD.
How Will This Impact Prices?
The upcoming mainnet upgrade has caused an increase in prices for Bitcoin Cash (BCH). Prices have jumped as much as 6% ahead of the launch which could indicate high investor confidence regarding this new development.
Conclusion
The planned upgrades should lead to an increased demand for BCH due to its improved security features, faster transactions speeds, small transaction sizes and smart contract capabilities which could make it attractive for users who want access to DeFi applications natively on Bitcoin cash.