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The Bitcoin Cash (BCH) network has undergone a major upgrade, allowing developers to create tokens with the same properties as BCH. They are called “CashTokens” and they can be issued by any network user.
The network has successfully updated the blockchain to BCH block height 792,772. According to BCH developer Jason Dreizechner, the new update includes support for CashTokens, which the developer considers “a tool for expanding financial inclusion.” The update also includes other features such as forward-looking multi-way vaults and technical improvements for transaction verification.
Congrats on the 2023 upgrade, Bitcoin Cash!
Beginning with block #792773 (000000000000000002fc0cdadaef1857bbd2936d37ea94f80ba3db4a5e8353e8), $BCH supports #CashTokensfuture-proof multiparty vaults (P2SH32), and several non-breaking technical improvements to TX validation.
— Jason Dreyzehner (@bitjson) May 15, 2023
The developer emphasized that CashTokens can be used for a variety of applications, from stablecoin and merchandise payments to gift cards and event tickets. Dreizechner also mentioned that the technology behind it will also enable advanced web applications. This includes decentralized exchanges (DEXs), security vaults, and bridging sidechains.
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The price of BCH tokens also rose on the same day due to the new update. The data shows that on May 15, the tokens rose from $114 to $120. Despite the hype, the price move was short-lived as the price returned to the $113 to $114 range almost instantly after the refresh day.
The CashTokens update on the Bitcoin Cash network comes as BRC-20 tokens become more popular. On May 9, BRC-20 tokens surpassed a $1 billion market cap. The explosive growth occurred two months after the creation of the Bitcoin Token Fungibility Protocol and was driven by the growth of tokens such as ORDI, NALS, VMPX, PEPE and MEME.
While the new development is proving to be exciting for many, it comes with a new set of challenges for the network. On May 10, CryptoQuant analyst Axel Adler Jr. said that due to the new token standard, higher fees and transaction delays have besieged the Bitcoin network.