BitCash inherits Bitcoin's UTXO model and SHA-256 mining algorithm but modifies key parameters to optimize for payment use cases:

BitCash uses SHA-256 double-hash proof-of-work, identical to Bitcoin. Miners compete to find a nonce that produces a block hash with a required number of leading zeros. The difficulty adjusts dynamically to maintain the 60-second target block time.

Replay Protection: Every transaction is signed with a network-specific magic byte (BCASH01 for testnet, BCASH02 for mainnet). This prevents transactions from being replayed across networks or on the Bitcoin mainchain.

Block Validation: Each block header includes the height, previous block hash, merkle root, timestamp, nonce, and replay protection magic. The block hash is computed as doubleSHA256(height:prevHash:merkleRoot:timestamp:nonce:magic).

Transaction Fees: Fixed at 100 satoshis (0.000001 BC) per transaction — approximately $0.001 USD. This enables micropayments that are uneconomical on traditional payment rails.

Fee Burn: 1% of all transaction fees are permanently burned, creating deflationary pressure as network usage grows. The remaining 99% goes to the block miner.

Halving Schedule: Block rewards halve every 210,000 blocks (~146 days at 60-second blocks), following Bitcoin's proven scarcity model. The initial reward is 50 BC, halving to 25, 12.5, and so on until the 21M supply cap is reached.

Supply Cap: Hard-capped at 21,000,000 BC. Once total supply reaches this limit, miners are compensated entirely through transaction fees.

BitCash uses an internal bonding curve pricing model rather than relying on external exchange prices. The price is calculated based on the network's circulating supply and grows as adoption increases.

Formula: Price = Market Cap ÷ Circulating Supply

The market cap grows on a bonding curve as more coins enter circulation:

Why a bonding curve? Traditional cryptocurrencies rely on exchange listings for price discovery, which can be delayed and unpredictable. A bonding curve provides instant liquidity and transparent pricing from day one. As the network grows and more coins are mined, the price increases predictably based on adoption.

Note: The bonding curve is the current pricing model until BitCash is listed on exchanges. Once listed, market forces will determine the actual trading price. The bonding curve ensures there's always a base valuation tied to network growth.