Bitcoin Cash (BCH)–Despite analysis by Satis Group earlier in the week, which gave an overwhelmingly negative price forecasting for Bitcoin Cash, BCH has managed to gain 14 percent in 24 hours from news of a successfully implemented stress test for the underlying cryptocurrency network.
According to information published through the blockchain metric-monitoring website Bitinfo, Bitcoin cash experienced over 2.1 million transactions on Saturday, September 1 in a scheduled stress test to push the limits of network capability. This particular stress test was a community driven effort to gauge the limitations of the BCH main net and prove the worth of the underlying blockchain capacity and scalability of the coin. The goal of the test was to create millions of minuscule-fee transactions in a single 24-hour period and observe how the network responded–such as whether transaction times would be slowed to a snail’s pace or transaction times surge to untenable prices. In addition to revealing information about the BCH main net as a source for transactions, it also provided data for developers looking to implement decentralized applications (DApps) via Bitcoin Cash.
To put the 2.1 million transactions into perspective, the stress test implemented for Bitcoin Cash accounted for 63 percent of total cryptocurrency transactions conducted during that 24-hour span, meaning that the network proved more than capable in handling the lion’s share of all crypto-based commerce if it came to that level of widespread use and adoption. Microtransactions on the BCH network also saw a marked increase during the test, climbing to 14300 per block at its peak, with transactions reaching a peak level of 25,783 per block (up from a typical transaction load of 90 – 150 per block–or a 17,000 percent increase).
Amazingly, and more importantly to the utility of BCH as a mercantile token, mining fees imposed per transaction did not increase during the surging network volume, with average fees actually showing a slight decline during that time period from $0.002 to $0.0017.
Jameson Lopp, a cryptocurrency software engineer, posted on his Twitter that the stress test was an overall success, giving more specifics on the breakthrough achievements,
BCH Stress test recap:
* Bottlenecks caused services such as the transaction generators to slow & error out, preventing mempool from exceeding 22 MB.
* Largest block: 21.35 MB
* Avg block size was ~3.6 MB: 11% of max capacity
* 16% of Bitcoin ABC nodes dropped off the network
– Jameson Lopp (@lopp) September 2, 2018
All of this comes as Bitcoin Cash continues to see a decline in user base and adoption, with Bitmain’s IPO controversy also being tied to news of the coin’s failing price performance. As reported by EWN last week, Satis Group, an ICO and cryptocurrency analytics firm, published an negative report on Bitcoin Cash (in addition to several other coins such as XRP), predicting the currency would fall to $258 within the next year, and only posting a 10-year outlook of $180 per coin–achieving nowhere near the price of the last all-time high. In August, CoinTelegraph reported on the decline in adoption for BCH, showing that the currency was losing holders relative to other coins such as Bitcoin and that use of the token in commerce was also in decline.
However, despite the previously mentioned negative news for the price and adoption of Bitcoin Cash, the coin managed to post a double-digit price increase following the results of the stress test, as the market responded to both BCH achieving headlines as well as proving its worth as a scalable currency.