What Is eCash? All You Need to Know About XEC

Bitcoin, the world’s first and most well-known cryptocurrency, has paved the way for the development of many other digital currencies. One notable development in the cryptocurrency space is the creation of forks, which are essentially new cryptocurrencies that branch off from the original Bitcoin network. These forks are created when there is a disagreement among the community about the future direction of the Bitcoin network. This disagreement can result in a split in the blockchain, with the original Bitcoin network continuing on one path and the newly created fork following a different path. Some notable examples of Bitcoin forks include Bitcoin Cash, Bitcoin SV, and Litecoin.

Each of these forks has its unique features, but they all share the same underlying technology that powers Bitcoin. As a result, they are often referred to as ‘altcoins’ or alternative cryptocurrencies. These altcoins offer a range of benefits over traditional currencies, such as faster transaction times, lower fees, and increased security.

Despite the growing number of altcoins in the market, Bitcoin remains the most popular and widely adopted cryptocurrency. Its success has paved the way for the development of new and innovative digital currencies like eCash (XEC), which builds upon the foundational technology of Bitcoin while offering additional privacy and, potentially, faster transactions.

What Is eCash (XEC)?

The history of eCash dates back to the first fork of the Bitcoin blockchain, dated August 1, 2017. The consequence of this fork led to the creation of Bitcoin Cash (BCH), which accommodated a larger block size of 8 megabytes (instead of one megabyte as Bitcoin). In November 2018, about a year after Bitcoin Cash was created, the blockchain split again through a hard fork update. This resulted in the introduction of a new blockchain called Bitcoin Cash SV (Satoshi Vision), which increased the block size limit to 128 megabytes. The original Bitcoin Cash blockchain, which maintained the original 8 megabyte block size, became known as Bitcoin Cash ABC. To avoid confusion, it colloquially branded itself as simply “Bitcoin Cash.” In November 2020, two years later, the Bitcoin Cash chain split one more time. A new chain called Bitcoin Cash ABC (BCHA) was introduced alongside the existing Bitcoin Cash (BCH) chain. Later on, in July 2021, the BCHA chain rebranded itself as eCash.

eCash introduces an absolute novelty, that is the Proof-of-Stake (PoS) consensus layer called “Avalanche,” which is designed to increase security and privacy on the network. eCash features faster transaction speeds, lower fees, and a more efficient block size limit compared to Bitcoin Cash ABC. The currency enables anonymous transactions, making it a popular choice for privacy-minded individuals and businesses.

How Does eCash Work? EVM Compatibility and Avalanche Consensus

eCash is designed to be compatible with the Ethereum Virtual Machine (EVM), which is the runtime environment for smart contracts on the Ethereum blockchain. This means that developers can write smart contracts in Solidity, the programming language used for Ethereum smart contracts, and deploy them on the eCash network.

By being EVM-compatible, eCash is able to tap into the vast network of developers and applications built on the Ethereum blockchain, which provides a wide range of possibilities for decentralized applications (dApps) and smart contracts on the eCash network. It is clear how the eCash project distinguished itself from other Bitcoin forks, such as Bitcoin Cash and Litecoin, by prioritizing different functionality and purpose for the coin. While the first two made only incremental changes to improve the Bitcoin mechanism, eCash took a more radical approach, aiming to compete with the hundreds of other projects focused on transaction speeds and operations in decentralized finance (DeFi).

Another feature that brings eCash closer to Ethereum is that, within the eCash ecosystem, developers can seamlessly design and deploy their own eCash-based tokens, known as eTokens. It is possible for anyone to launch eTokens using their preferred token title, symbol, decimal points, and image. Additionally, users have the flexibility to modify the tokenomic factors, such as selecting the maximum amount and distribution model. These tokens work just like Ethereum ERC-20 tokens and they are fully compatible with decentralized finance (DeFi) applications and payments.

The eCash project incorporates a consensus layer known as “Avalanche,” which is a novel consensus protocol that utilizes the proof-of-stake (PoS) mechanism, allowing for fast and secure transaction processing. It is important to note that this is distinct from the blockchain known as Avalanche (AVAX).

Avalanche utilizes four interoperable mechanisms (Slush, Snowflake, Snowball, and Avalanche) to provide quick and decisive transaction finality with a high degree of throughput, low latency, and seamless code upgrades that eliminate forks. Additionally, the Avalanche algorithm plays a key role in enabling the decentralized governance mechanisms that underpin the eCash platform. One key feature of Avalanche is that it utilizes a system of subnets that enables the network to scale more effectively. Each subnet has its own validator set and is able to process transactions in parallel, which helps to increase the overall throughput of the network. Another important feature of Avalanche is its use of a probabilistic finality mechanism. This means that instead of waiting for confirmations, transactions on the Avalanche network are considered final with a high degree of probability almost immediately after they are broadcast.

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Privacy and CashFusion

eCash places a high emphasis on privacy. One of the ways eCash achieves this is through the use of CashFusion, which is a privacy technology that’s similar to privacy coins. CashFusion enables users to combine their transactions with those of other users. It works by breaking up the inputs and outputs of transactions into smaller denominations and then mixing them with the inputs and outputs of other users in a way that makes it difficult to trace the flow of funds or link specific transactions to a particular user. The end result is that it significantly increases the level of privacy for eCash users. Additionally, CashFusion is an opt-in feature, which means that users can choose whether or not to use it for their transactions.

Currently, this technology is only provided via the Electrum ABC crypto wallet. However, eCash intends to expand compatibility with other popular crypto wallets in the near future.

eCash Use Cases

Overall, eCash can be used for various purposes, from everyday transactions to investments and cross-border payments. Below are three of its main use cases.

1. Peer-to-peer payments: eCash can be used for sending and receiving payments between individuals without the need for intermediaries such as banks. This makes transactions faster and cheaper.
2. Cross-border transactions: eCash can be used for cross-border transactions, as it is not subject to the same restrictions as traditional currencies. This can make it easier and cheaper to send money across borders.
3. Micropayments: eCash can be used for making small transactions, such as paying for online content or digital downloads. The low transaction fees make it a viable option for micropayments.

As eCash (XEC) continues to gain popularity and adoption, the possibilities for expanding its use cases are many. Additionally, as the technology behind eCash (XEC) continues to evolve and improve, new use cases may emerge, further expanding its potential applications.

What Is the XEC Token?

The XEC token is the native cryptocurrency of the eCash network. Its maximum supply is 21 trillion units, of which 19,332,117,173,303 (92%) are already in circulation (March 2023). The XEC token plays several important roles within the eCash network. First and foremost, it is used as a means of payment for transactions on the network, with users able to send and receive XEC in exchange for goods and services. Secondly, the XEC token is used to incentivize users to participate in the network and support its operations. This is achieved through a process called “staking,” whereby users hold XEC tokens in a wallet and use them to validate transactions on the network. In exchange for staking their tokens, users receive rewards in the form of newly minted XEC tokens.

The distribution and supply of eCash are similar to that of Bitcoin, with reward halvings for miners occurring approximately every four years after 210,000 blocks. The eCash network also shares the same maximum supply limit of 2.1 quadrillion satoshis as Bitcoin, although the XEC tokens were created by dividing this amount by 100 instead of 100 million, resulting in a total supply of 21 trillion XEC.

To achieve this goal of ensuring a user-friendly experience for its users, eCash has introduced the term “bits” to facilitate small XEC token payments. This means that instead of typing in a complex payment amount like 0.00001000 BTC, users can now simply send 10 bits instead.

eCash Ecosystem

The eCash ecosystem supports several major wallets for storing and managing eCash (XEC) coins. One of the official eCash wallets is CashTab, which is an open-source, non-custodial web wallet for eCash and eTokens. CashTab is highly secure and easy to use, and is also available as a browser extension for Google Chrome and Brave. Another eCash wallet is Electrum ABC, which is a fast and highly secure wallet for Windows, macOS, and Linux. Electrum ABC supports advanced features such as hardware wallets, multi-sig wallets, and importing private keys, making it ideal for power users. Finally, there is AbcPay, an advanced multi-currency crypto wallet for mobile devices that supports eCash and eTokens. AbcPay offers cutting-edge features such as multi-signature wallets, 2FA, and biometric authentication. The availability of multiple wallet options within the eCash ecosystem allows users to choose the wallet that best suits their needs and preferences, while ensuring that their eCash remains secure and easily accessible.

The eCash protocol has a roadmap outlining the direction of its technical development. The focus of the roadmap is on incremental improvements to the eCash protocol, which will help to scale transaction throughput, improve payment experience, and extend the protocol to support future upgrades. The goal of eCash developers is to produce high-quality software that serves the needs of users, miners, and merchants, and to constantly improve the eCash protocol.

Is eCash a Good Investment?

As with any cryptocurrency investment, eCash (XEC) carries a certain level of volatility that must be taken into account. However, eCash has implemented many features that could promote its mainstream adoption as a form of digital cash, including tackling issues of scalability, usability, and governance. The development team is committed to continuous technical improvements, such as increasing transaction throughput and improving user experience, which could increase the currency’s value over time. Additionally, the shift to proof of stake consensus is expected to improve usability, extensibility, and scalability, which should benefit eCash in the long run. However, it is important to note that eCash’s success ultimately depends on its acceptance by major institutions and payment merchants outside of the cryptocurrency landscape. As such, the future of eCash remains uncertain, and any investment in XEC should be made with careful consideration of the risks and rewards.

How to Own XEC?

To own XEC, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy XEC.

News on XEC

As announced by the development team on March 8, 2023, the eCash network is set to undergo a major upgrade on May 15. To activate the upgrade, all operators of a Bitcoin ABC full node must upgrade to the latest major version. The upgrade will include several changes, such as a consensus-enforced transaction version that restricts the version field of eCash transactions to versions 1 or 2, which will pave the way for a new transaction format.

Another change is that the miner fund, which funds eCash network development, will no longer be enforced by consensus, making it easier to update the miner fund parameters. After the upgrade, Bitcoin ABC nodes will also start accepting an unlimited number of chained transactions in the mempool. This policy change will have no impact on the consensus rules. Overall, the eCash network upgrade is aimed at improving the scalability and flexibility of the eCash blockchain.

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