The Bitcoin Cash (BCH) network underwent a major update on May 15, allowing developers to create tokens with the same properties as BCH. The tokens – called “CashTokens” – can be issued by anyone using the network.
The network has successfully upgraded the blockchain to the block height of 792 772. According to BCH developer Jason Dreyzehner, the new upgrade includes support for CashTokens, which the developer sees as a “tool to expand financial access.” The upgrade also includes features such as scalable multiparty vaults and technical improvements for transaction validation.
Congratulations on the 2023 update, Bitcoin Cash!
Starting with block #792773 (000000000000000002fc0cdadaef1857bbd2936d37ea94f80ba3db4a5e8353e8), $BCH supports #CashTokensfuture-proof multi-party vaults (P2SH32) and several unbreakable technical improvements to TX validation.
—Jason Dreyzehner (@bitjson) May 15, 2023
The developer pointed out that CashTokens can be used for various applications, from payment stablecoins and commodities to gift cards and event tickets. Dreyzehner also mentioned that its underlying technology would make advanced on-chain applications possible. This includes decentralized exchanges (DEXs), security vaults, and bridged side chains.
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BCH price surged on the same day due to the new update. The data shows that the tokens fell from $114 to $120 on May 15. Despite the hype, the price action was short-lived as the price almost instantly snapped back into the $113-$114 range after the upgrade.
The upgrade of CashTokens on the Bitcoin Cash network comes as BRC-20 tokens are becoming increasingly popular. On May 9, BRC-20 tokens surpassed the market capitalization of $1 billion. The explosive growth came two months after the inception of the Bitcoin Token Fungibility Protocol and was fueled by the growth of tokens like Ordi (ORDI), Nals (NALS), VMPX (VMPX), Pepecoin (PEPE) and Meme (MEME ).
While the new development has proven exciting for many, it has come with a new set of problems for the network. On May 10, CryptoQuant analyst Axel Adler said rising fees and a backlog of transactions had beleaguered the Bitcoin network due to the new token standard.
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