Bitcoin Cash allows CashTokens upgrade on its network

The Bitcoin Cash (BCH) network received a major upgrade on May 15, allowing developers to create tokens with the same properties as BCH. The tokens – called “CashTokens” – can be spent by anyone using the network.

The network successfully upgraded the blockchain at the block height of 792,772. According to BCH developer Jason Dreyzehner, the new upgrade includes support for CashTokens, which the developer believes is a “tool to increase financial access.” The upgrade also has features such as future-proof multi-party vaults and technical improvements for transaction validation.

Congratulations on the 2023 upgrade, Bitcoin Cash!

Starting with block #792773 (000000000000000002fc0cdadaef1857bbd2936d37ea94f80ba3db4a5e8353e8), $BCH supports #CashTokensmulti-party future-proof vaults (P2SH32) and several non-breaking technical improvements to TX validation.

— Jason Dreyzehner (@bitjson) May 15, 2023

The developer emphasized that CashTokens can be used for a variety of applications, from stablecoins for payments and commodities to gift cards and event tickets. Dreyzehner also said the underlying technology would enable advanced on-chain applications. This includes decentralized exchanges (DEXs), security vaults, and bridged side chains.

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The price of BCH tokens also increased on the same day due to the new update. Data shows that the tokens went from $114 to a high of $120 on May 15. Despite the hype, the price action was short-lived as the price bounced back to the $113 to $114 range almost immediately after the day of the upgrade.

The CashTokens upgrade on the Bitcoin Cash network comes as BRC-20 tokens became more and more popular. On May 9, BRC-20 tokens surpassed a market cap of $1 billion. The explosive growth came two months after the Bitcoin token fungibility protocol was created and was fueled by the growth of tokens such as ORDI, NALS, VMPX, PEPE, and MEME.

While the new development is proving exciting to many, it brought a new set of problems for the network. On May 10, CryptoQuant analyst Axel Adler Jr. that higher fees and a backlog of transactions have besieged the Bitcoin network because of the new token standard.

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