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Bitcoin Cash (BCH), a decentralized blockchain, has made a significant stride toward cementing its future relevance in the blockchain ecosystem.
In a recent X post, Jason Dreyzehner, Bitcoin Cash’s developer, confirmed that the much-anticipated May 2025 upgrade has officially launched on the mainnet.
He added that this activation is already live on Chipnet at block 227,228, delivering two monumental innovations.
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What’s New in Bitcoin Cash: The May 2025 Upgrade
The May 2025 upgrade introduces two pivotal features: the Targeted Virtual Machine Limits CHIP and the BigInt CHIP: High-Precision Arithmetic.
The first significant feature, the Targeted Virtual Machine Limits CHIP, is focused on boosting Bitcoin Cash’s smart contract capabilities.
This will be done by increasing computation capacity over 100 times while halving node compute utilization. This upgrade is designed to reduce system overhead and simplify contract execution and audits.
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More importantly, it enables the implementation of innovations such as post-quantum cryptography, zero-knowledge proofs, and homomorphic encryption. These technologies are crucial for Bitcoin Cash’s future security and competitiveness.
The BigInt CHIP introduces high-precision arithmetic to Bitcoin Cash, reducing contract lengths by over 10 times. It is built to make advanced use cases like automated market-making, decentralized stablecoins, and cross-chain bridges practical.
Unlike Ethereum, Bitcoin Cash now supports complex operations with cheaper, more efficient transactions, all while maintaining security and compatibility on low-cost hardware.
BCH’s Upgrade: Enhancing Network Performance and Security
These two upgrades enhance Bitcoin Cash’s contract capabilities and improve the network’s overall security and performance.
The new tooling and cross-implementation benchmarking technique introduced in this upgrade constantly verify node performance. This ensures that Bitcoin Cash nodes continue to operate optimally, even as the network evolves.
Optimizing the network for current and future use cases could make BCH a strong contender in the race for blockchain dominance.
It positions it as a powerful platform for developers and users alike, a competitive alternative to Ethereum and other blockchain platforms.
Bitcoin Cash Sees A Modest Response
Despite the major technological advances, the price of Bitcoin Cash (BCH) has only modestly risen following the upgrade announcement.
The latest data shows BCH has gained 5% in the last 24 hours, reaching $442. This marks the second consecutive day of gains, signaling a positive but cautious market response.
Investors may be waiting to see how the full impact of the upgrade unfolds before committing further.
Despite these innovation enhancements, the market reaction remains cautious, as Bitcoin Cash’s long-term potential has never been clearer.
However, the May 2025 upgrade sets the stage for a future in which Bitcoin Cash can lead in innovation and adoption.