The blockchain of Bitcoin Cash (BCH) underwent a significant upgrade on May 15, which gives developers the ability to create tokens with the same attributes as BCH. The new tokens are called “CashTokens” and can be issued by anyone using the network. At the block height of 792,772, the blockchain was successfully upgraded, and according to BCH developer Jason Dreyzehner, the upgrade includes support for CashTokens. CashTokens is seen as a tool for expanding financial access, and the underlying technology could make advanced on-chain applications possible, including decentralized exchanges (DEXs), security vaults, and bridged sidechains.
Dreyzehner highlighted that CashTokens could be used for various applications, ranging from payment stablecoins and commodities to gift cards and event tickets. The upgrade also has features like future-proof multiparty vaults and technical improvements for transaction validation. On May 15, the price of BCH increased from $114 to a high of $120; however, the price movement was short-lived as the price almost immediately returned to the $113 to $114 range after the upgrade. The CashTokens upgrade on the BCH network comes as BRC-20 tokens become increasingly popular. The explosive growth of BRC-20 tokens came two months after the Bitcoin token fungibility protocol was created and was fueled by the growth of tokens like Ordi (ORDI), Nals (NALS), VMPX (VMPX), Pepecoin (PEPE), and Meme (MEME).
While the new development proved exciting for many, it came with a set of new problems for the network. The increased fees and backlog of transactions have besieged the Bitcoin network because of the new token standard. According to CryptoQuant analyst Axel Adler, this has resulted in new challenges for the Bitcoin network, and users should be aware of this issue. However, the upgrade has been a positive step for Bitcoin Cash in terms of improving its functionality and bringing it closer to its ultimate goal of being a global and accessible currency.