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Bitcoin Cash enables CashTokens upgrade on its network

Bitcoin Cash enables CashTokens upgrade on its network

The Bitcoin Cash (BCH) network underwent a major upgrade, allowing developers to create tokens with the same properties as BCH. These are called “CashTokens,” and they can be issued by anyone using the network. 

The network successfully upgraded the blockchain at the BCH block height of 792,772. According to BCH developer Jason Dreyzehner, the new upgrade includes support for CashTokens, which the developer believes to be a “tool for expanding financial access.” The upgrade also includes other features like future-proof multiparty vaults and technical improvements for transaction validation.

The developer highlighted that CashTokens can be used for various applications from payment stablecoins and commodities up to even gift cards and event tickets. Dreyzehner also mentioned that advanced on-chain applications will also become possible from its underlying technology. This includes decentralized exchanges (DEXs), security vaults and bridged sidechains. 

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The price of BCH tokens also surged on the same day due to the new update. Data shows that the tokens went from $114 to a high of $120 on May 15. Despite the hype, the price action was short-lived as the price almost instantly went back to the $113 to $114 range after the day of the upgrade.

Bitcoin Cash price index from May 14 to May 16. Source: Cointelegraph

The CashTokens upgrade on the Bitcoin Cash network comes as BRC-20 tokens became increasingly more popular. On May 9, BRC-20 tokens surpassed a $1 billion market capitalization. The explosive growth came two months after the Bitcoin token fungibility protocol was created, and was fueled by the growth of tokens like ORDI, NALS, VMPX, PEPE and MEME.

While the new development proves exciting for many, it came with a new set of problems for the network. On May 10, CryptoQuant analyst Axel Adler Jr expressed that increased fees and a backlog of transactions have besieged the Bitcoin network because of the new token standard.

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