Robert Steinadler, 17 days ago

Bitcoin Cash is getting ready for CashTokens

Today the Bitcoin Cash network will go through a voluntary hard fork to implement an upgrade. One particular part of that upgrade is highly interesting since it introduces tokens on the Bitcoin Cash blockchain. Tokenization has been a topic for several years and it seems that Bitcoin Cash is late for the party. However, Ordinals have proven on Bitcoin that even a late arrival can still unleash a storm and create a billion-dollar market.

What are CashTokens and what options do they offer for Bitcoin Cash users?

Two types of CashTokens

CashTokens will not introduce any new tokens standard that we haven’t seen yet. Instead, they will arrive with two different types of tokens. Non-fungible tokens that will allow the creation, transfer, and trading of NFTs. The second is fungible tokens which means that Bitcoin Cash will soon offer the option to tokenize any kind of asset on its blockchain.

The proposal for CashTokens reaches back to late 2022 when Ordinals weren’t a hot topic. However, the upgrade is done at the right time. Ordinals peaked at an evaluation of about $1.5 billion in market capitalization. Of course, this is nowhere near the market cap of average DeFi chains but a huge success when looking at the fact that Bitcoin wasn’t capable of handling any other tokens than BTC.

This success also comes with a downside. Bitcoin has suffered from a clogged mempool and exploding prices for transaction fees. Critics argue that on-chain token trading is detrimental to the plans of using Bitcoin as a monetary network.

BRC-20 tokens are flourishing

Ordinals have introduced NFTs to Bitcoin and more recently BRC-20 tokens. CashTokens on the other hand don’t have to go through a lengthy process to make fungible tokens happen. They will offer this option from the very start. Over 18,000 BRC-20 tokens have been minted on Bitcoin at the time of writing.

Bitcoin Cash supporters can hope that CashTokens will create a similar success story. Meme coins like Pepe and derivatives of the frog-themed token are doing great even on Bitcoin. Bitcoin Cash is not the only cryptocurrency that recently dipped a toe into tokenization.

Litecoin implemented Ordinals in February and this fact alone reveals that token trading is perhaps the biggest use case aside from monetary transactions. Rising interest from users as well as from developers hints that this could turn out to be a long-term trend.   

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