Bitcoin Cash is a fork of the Bitcoin which set its block size to 8 MB. This allows the Coin to process much more transactions and therefore lower its transaction fees. However, there is no official number for the amount of transactions Bitcoin Cash can handle. Let’s calculate it ourselves:
How many transactions can it handle?
Note: This article is outdated, as it references the old Bitcoin Cash. For an updated article please check here.
To calculate the exact number of transactions, we need to understand how Bitcoin Cash processes transactions.
How it works
When a transaction is made, it gets broadcasted to all the Bitcoin Cash Nodes, who store this transaction in their Mempool. This Mempool is the “waiting area” until the transactions get added to the next block. However, a Block has a limit on its size, which can cause jams. If this is the case, the transactions with higher transaction fees get prioritized. A block will also only be created all 10 minutes, this time is defined by a currencies block time.
To calculate the transactions per second we need the following information:
Block Time: 10 Minutes = 600 seconds
Block Size: 8 MB = 8388608 Bytes
8388608 Bytes / 600 s = 13981.01 Bytes/s
Using this information we know that the Bitcoin Cash Network can process up to 13981.01 Bytes worth of transactions per second (on average).
How many transactions are this?
To calculate how many transactions can be fit into these 13kB we simply need the average transaction size, which is 226 bytes. (Source: https://bitcoinfees.earn.com/)
Average transaction size: 226 Bytes
226 bytes/tx / 13981.01 Bytes/s = 61.862 tx/s
Bitcoin Cash can handle up to 61 transactions per second (on average).
As a result, this is a great improvement compared to the BTC, but it adds new issues. Most noteworthy is the blockchain size problem.
If you’re interested in the problems of Bitcoin Cash, we recommend you check out this article: The Bitcoin Cash problem