The Bitcoin Cash (BCH) network has undergone a major upgrade on May 15th. With the new upgrade, developers can now create tokens that have the same properties as BCH. These tokens, known as “CashTokens,” can be issued by anyone using the network.
The blockchain successfully upgraded at the block height of 792,772, paving the way for support for CashTokens and introducing technical improvements for transaction validation features like future-proof multiparty vaults. According to BCH developer Jason Dreyzehner, the use of CashTokens is a “tool for expanding financial access” and can be utilized for a variety of purposes, including payments for stablecoins, gift cards, and event tickets. Furthermore, CashToken’s underlying technology enables advanced on-chain applications like decentralized exchanges (DEXs), security vaults, and bridged sidechains.
The CashTokens upgrade initially led to a surge in the price of BCH tokens, which increased from $114 to a high of $120 on May 15, but the price soon returned to the $113 to $114 range after the upgrade.
The release of CashTokens on Bitcoin Cash comes as BRC-20 tokens continue to soar in popularity, with a market capitalization of more than $1 billion as of May 9. However, the new token standard has also led to heightened fees and transaction backlogs on the Bitcoin network, as noted by CryptoQuant analyst Axel Adler on May 10.