coinspress.com
The Bitcoin Cash (BCH) network recently underwent a significant upgrade, enabling developers to generate tokens with similar properties to BCH.
These tokens, known as “CashTokens,” can be created by any user on the network.
The blockchain upgrade was successfully implemented at the BCH block height of 792,772. According to Jason Dreyzehner, a BCH developer, the upgrade introduces support for CashTokens, which he sees as a means of enhancing financial accessibility.
Alongside CashTokens, the upgrade includes features such as future-proof multiparty vaults and technical enhancements for transaction validation.
Dreyzehner emphasized the versatility of CashTokens, stating that they can be employed for various purposes, including stablecoin payments, commodity transactions, gift cards, and event tickets.
Furthermore, he noted that the underlying technology allows for advanced on-chain applications such as decentralized exchanges (DEXs), security vaults, and bridged sidechains.
Coinciding with the upgrade, the price of BCH tokens experienced a surge. On May 15, the tokens rose from $114 to a peak of $120. However, the price increase was short-lived, as it quickly reverted back to the $113 to $114 range following the upgrade.
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The CashTokens upgrade on the Bitcoin Cash network comes at a time when BRC-20 tokens have gained popularity. On May 9, the market capitalization of BRC-20 tokens exceeded $1 billion.
This rapid growth occurred two months after the Bitcoin token fungibility protocol was introduced, fueled by the success of tokens like ORDI, NALS, VMPX, PEPE, and MEME.
While this new development is exciting, it has also challenged the network. On May 10, Axel Adler Jr, an analyst at CryptoQuant, expressed concerns about increased fees and a backlog of transactions affecting the Bitcoin network due to the new token standard.