The upcoming Bitcoin Cash network upgrade on May 15 will introduce Cashtokens. This new feature allows users to create and use tokens on the BCH blockchain with advanced functionality and scalability.
Bitcoin Cash Upgrade Brings Cashtokens, and Onchain Smart Contracts The upcoming Bitcoin Cash network upgrade on May 15 will introduce Cashtokens. This new feature allows users to create and use tokens on the BCH blockchain with advanced functionality and scalability.
Cashtokens: A New Way to Tokenize on Bitcoin Cash
Pro-freedom technologies advocate and software developer Jason Dreyzehner emailed Bitcoin.com News regarding the May 15 Bitcoin Cash network upgrade. The Cashtokens CHIP, which proponents say would boost economic freedom, is one of the most discussed improvements scheduled for that date.
Cashtokens employ Bitcoin Cash’s native UTXO architecture to create and use tokens on the blockchain. Cashtokens, unlike SLP tokens, are fully compatible with the BCH network and require no protocol upgrades. Any BCH wallet can send and receive cashtokens for smart contract and decentralized exchange transactions.
According to Dreyzehner, Cashtokens will enable “advanced on-chain applications like higher-security vaults, decentralized exchanges, and bridged sidechains,” comparable to Ethereum, more scalable, and cheaper.
He noted that covenants allow users to set spending conditions for Cashtokens. For instance, a user can generate a token that a specific address can only consume after a certain time or in exchange for another token.
Dreyzehner also said that Cashtokens would allow for interoperability with other blockchains, such as Ethereum and Binance Smart Chain, by using bridges that lock and unlock tokens across different chains.
This way, users can benefit from the best features of each chain without sacrificing security or decentralization.
BCH Tokyo weekly meetup organizer Big V told Bitcoin.com News: “The Cash Tokens upgrade is exciting because it is one small step for the protocol, but one giant leap for Bitcoin Cash, which now enables incredibly fast, efficient, and inexpensive decentralized permissionless financial products for everyone on Earth.”
The Cashtokens CHIP is one of several improvements that will be activated on the Bitcoin Cash network on May 15, along with other changes, such as removing the unconfirmed transaction chain limit and implementing double-spend proofs.
These upgrades are expected to make BCH more useful, scalable, and secure for its users worldwide.
