Bitcoin is built on something called a blockchain. The bitcoin blockchain is a public ledger containing all the transaction data from anyone who uses bitcoin. Transactions are added to “blocks” or the links of code that make up a chain, and each transaction must be recorded on a block. But these blocks are full, and it is slowing transactions way down.
Currently, there are an average of about 1,700 transactions that can be saved per bitcoin block, at about 3 transactions per second. (Example: Visa- handles thousands of transactions every second).
Because the bitcoin blockchain is becoming too congested, someone could pay for something with bitcoin, but it wouldn’t be approved for hours.
The bitcoin community tried to solve this problem by implementing the rule change to its software called “Segregated Witness”. The rule chamge would let people put more transactions on each block. This technical terms, is called a “soft pork”, and would not result in an entirely new cryptocurrency. The new rule is supposed be enacted this month.
For some, this was not enough, That’s where Bitcoin Cash come in.