What Exactly Is ECash (XEC)? Learn with MEXC Academy
ECash or XEC, a Bitcoin hard fork that allows for payment of products and services, was once known as Bitcoin Cash ABC. You might be familiar with eCash if you have been investing in Bitcoin over the past few years. This cryptocurrency presents itself as a decentralized network based on sound financial principles.
How Does ECash Work?
By employing a multi-layered architecture, the eCash makes it simple for developers to produce smart contracts and decentralized apps (dApps). With this technique, an Ethereum Virtual Machine (EVM) subchain is integrated with a privacy-focused blockchain. If smart contract functionality is entirely segregated, the network can expand without encountering recurring problems. Let's examine the main characteristics of eCash:
- Wallet. When you use eCash, it comes with a built-in wallet that uses Sighash to ensure security. The wallet's interface enables users to keep track of all transaction activities and stake rewards.
- Governance. Due to this platform's complete decentralization, stakeholders are encouraged to submit suggestions for new features or enhancements that would make the eCash network more inclusive. Cryptocurrency investors and aficionados like the independence of being able to directly or indirectly influence where the platform goes.
- CashFusion. Privacy is the most significant issue that affects all users. Customers' needs encouraged eCash to deploy the CashFusion protocol, a privacy technology. CashFusion is subject to the same legal limitations that apply to the Bitcoin blockchain because it makes use of the same technology. CashFusion is completely scalable and has an auditable supply cap.
How Does ECash Ensure Security?
Like Bitcoin, XEC runs on its own blockchain. In order to speed up transactions compared to the prior Bitcoin Cash ABC (BCHA) network, which was protected by a proof-of-work (PoW) consensus method, the developers of eCash sought to add proof-of-stake (PoS) to the network. It is known as the "Avalanche post-consensus," and it would include enhanced script capability, fork-free updates, and complex opcodes. The Avalanche layer was added on top of the present PoW technique to take advantage of the benefits of both.
Tokenomics of ECash
It follows many of the rules set forth by Bitcoin. The same supply and distribution principles as Bitcoin are used, therefore the reward for miners is halved every 210,000 blocks (roughly every four years). The supply cap for ECash is 2.1 quadrillion satoshi, just like Bitcoin. It was divided by 100 to create 21 trillion XEC rather than by 100 million to create 21 million BTC.