Topics Altcoins
Bybit Learn
Bybit Learn
Beginner
Jul 25, 2022

eCash (XEC): The Answer to Privacy & a Fork-Free Future

If you've invested in Bitcoin over the past few years, you may have heard of eCash, which was originally termed Bitcoin Cash ABC following a hard fork from Bitcoin in November 2020. This cryptocurrency is advertising itself as a type of decentralized and secure network that centers around sound money policy.

The eCash ecosystem provides users with instantaneous transactions that have very low fees. If you're interested in making an investment into eCash, the following guide provides you with everything you need to know about this crypto asset and the benefits it provides.

What Is eCash?

ECash is a rebranded form of the Bitcoin Cash ABC fork from Bitcoin Cash and Bitcoin. This cryptocurrency is designed as electronic cash and is meant to be used in transactions for purchasing services and goods.

At the beginning of July 2021, the Bitcoin Cash ABC currency was rebranded as eCash (XEC). This platform is based on many technologies that are present in the Bitcoin protocol, the primary of which include Bitcoin's halving schedule as well as its fixed supply. You'll also notice that eCash uses a governance protocol as well as a proof of stake (PoS) consensus mechanism.

The purpose of the eCash platform is to become a payments service for international transactions that's fast, secure and easy-to-use. Eventually, the native eCash token should become sound money that can be used anywhere in the world.

History of eCash

As touched upon previously, eCash was created from a Bitcoin blockchain fork that occurred in late 2020. At that time, the Bitcoin Cash currency was forked to create Bitcoin Cash ABC. Soon thereafter, the currency was renamed to eCash to further improve its adoption.

How Does eCash Work?

The eCash platform takes a multi-layered approach to ensure developers are able to create smart contracts and decentralized apps (DApps) without issue. This approach combines an Ethereum Virtual Machine (EVM) subchain with a blockchain that's focused on privacy. By making sure that smart contract functionality is completely separate, blockchain networks can be scaled substantially without running into constant problems.

The use of the EVM subchain means that developers on Ethereum are able to expand or transfer their decentralized apps over to the eCash platform without first reconfiguring them. There are many features that eCash consists of, which include everything from eTokens to a governance protocol.

eTokens

To better understand what eTokens are, we can compare them with Ether, essentially a token for the Ethereum blockchain. However, Ethereum’s blockchain also hosts ERC-20 tokens that are based on it, the primary of which include Unilayer (LAYER), Cronos (CRO) and Basic Attention Token (BAT).

When taking the eCash platform into account, developers are able to design and create their own eCash-based tokens, which are known as eTokens. These tokens work just like Ethereum-based tokens. Keep in mind that eTokens are fully compatible with decentralized finance (DeFi) applications and payments. It's also possible to form eTokens with your own symbol, icon, decimal places and token name. The coin's tokenomic parameters can also be altered to suit your preferences.

You can easily develop your own tokens by making just one eCash transaction. It's important to understand that launching eTokens can be done with subcents, which means that anyone who wants to create an eToken will be able to do so without spending a considerable sum of money.

Staking

You are provided with rewards when staking XEC tokens. The staking process provides the eCash network with its security and allows users to obtain a passive income stream that comes with very little risk. In fact, staking is considered to have less risk when compared to trading, since rewards are predetermined based entirely on how many tokens are staked. When someone wants to earn consistent returns, all that's required is to stake XEC tokens with eCash.

Governance

Yet another key benefit of using this platform is the fact that it has a decentralized governance protocol, which means that stakers are incentivized to create proposals that help push the protocol in a specific direction. A decentralized governance protocol is highly advantageous because it allows users to determine many aspects of the platform's future.

CashFusion

The eCash platform’s primary goal is to make sure that users are able to obtain full privacy, which is necessary for sound money to retain its core characteristics. It's because of the need for privacy that eCash uses the CashFusion protocol, which is a privacy technology that's similar to privacy coins. Keep in mind that CashFusion is fully scalable with a supply cap that can be audited. The inclusion of this technology means that CashFusion falls under the same regulatory guidelines as the Bitcoin blockchain.

Because of how tracking technologies and data analytics have continued to advance in recent years, there are more privacy issues and vulnerabilities than ever. eCash aims to solve these vulnerabilities with CashFusion technology. The people behind eCash also understand that the increasing popularity of cryptocurrencies means that companies, governments and social media platforms will be searching for ways to view and analyze user data to make sure that their marketing techniques take user behavior into account. The adoption of CashFusion should keep this future at bay.

Even though CashFusion focuses on privacy, it provides you with the ability to opt in to the privacy features — which means that you can choose how transparent you want to be about your funds. This technology is only provided via the Electrum ABC crypto wallet. However, eCash intends to expand compatibility to other popular crypto wallets in the near future.

Wallet

The eCash platform comes with a native wallet that uses Sighash for enhanced security. With this system in place, you’ll be able to monitor all of your holdings and you can purchase, trade or sell them as well. It's also possible to monitor any staking rewards you receive through the wallet interface.

Consensus

The primary component of eCash is Avalanche, which is the platform's consensus protocol. The inclusion of this PoS system means that users can play a part in validation without needing to go through the process of buying costly mining rigs. Keep in mind that Avalanche contains modern features, primarily a fully adaptive block size that's able to increase to as much as 1TB.

To understand how large one terabyte is, Bitcoin's block size is just one megabyte. (A terabyte is one million megabytes.) Avalanche is also outfitted with Canonical Transaction Ordering, pre-consensus, and a Merklix-Metadata tree. With the inclusion of these technologies, the network is able to provide users with real-time transaction and processing finality.

Problems Fixed by eCash

The eCash platform was designed primarily to mitigate and solve many of the problems that exist in the cryptocurrency market. For instance, this particular project was formed to help users invest in an informed and knowledgeable manner. While Bitcoin can be confusing to use because of its distinct technical structure and format, the same isn't true with eCash. In fact, eCash uses a two-decimal layout to effectively mimic fiat currency.

Hard Forks

A primary issue that eCash is able to eliminate involves hard forks. Bitcoin has had several hard forks over the years, notably Bitcoin Cash. While some hard forks work out, they can also damage the primary currency for a lengthy period of time, which hurts investors in the original platform.

To make sure that network upgrades are streamlined and don't lead to hard forks, eCash was engineered with network extensibility in mind, which means that future improvements and upgrades can be made without causing ample disruption to the network. Hard forks are avoided by combining advanced security measures with the Avalanche post-consensus mechanism.

Lack of Privacy

The vast majority of crypto projects have reduced the amount of privacy they offer by taking an approach that appeases regulators. The main catch with this approach is that it's considerably easier for governments, social media platforms and companies to gain more knowledge about a user's investment activities. In comparison, eCash mitigates these issues entirely with the inclusion of the zero-knowledge subchain, which ensures ample amounts of privacy.

High Fees

Another problem that investors encounter when investing in digital assets of any kind is the high fee structure that most of these assets come with. Networks like Ethereum have exceedingly high gas fees because of network congestion, which means that users who don't have a considerable amount of assets to burn must look to alternative solutions. One such alternative is eCash, which has much lower transaction fees when compared to other options on the market.

XEC Price Prediction

If you're considering investing in XEC but are hesitant about what its future price will be, some sources estimate that it will reach a price of $0.000223 by the end of 2022. By 2025, the price of this currency could be higher than $0.000560, which is a substantial increase for any investor. As of now, eCash’s market cap is just below $800 million.

Where to Buy XEC

Looking to purchase XEC? You can do so through Bybit, which is among the fastest-growing crypto exchanges. Choose to purchase this cryptocurrency via smartphone or desktop computer. Using a smartphone is simple. The steps for buying XEC are as follows:

  • Search for the Bybit app on the Google Play Store or App Store, then download the app

  • Log in to your existing Bybit account, or create a new one after KYC verification

  • Click on the Buy Crypto button before choosing Express

  • Select the amount of XEC that you'd like to purchase with your fiat currency of choice

  • Complete the order once all of your necessary details and card info have been provided

If you're accessing Bybit from a computer, the steps for purchasing XEC are:

  • Make sure that you have a Bybit account, or create one

  • Choose Buy Crypto from the menu, then Express from the drop-down menu

  • Input the amount of XEC that you’d like to purchase with your fiat currency of choice

  • Verify the transaction to finalize your purchase

Is eCash a Good Investment?

When compared to similar digital assets, eCash is a strong platform that provides users with some fantastic features. For instance, eCash offers ample decentralization, such as staking tokens for high rewards. When comparing this platform to Bitcoin Cash and the Bitcoin blockchain in general, Bitcoin Cash doesn't contain the same decentralized features. While the eCash platform remains a proof of work (PoW) consensus in some regards, developers have been shifting to the PoS consensus.

The Future of eCash

Just like any other cryptocurrency you choose to invest in, there's a certain volatility that you need to take into account when you decide to invest in XEC. Because of this volatility, it's practically impossible to accurately predict if the currency will decrease or increase in value over an extended period of time.

Despite these challenges, eCash should be able to obtain a higher value once it’s fully shifted over to the proof of stake consensus. Since the PoS consensus offers better usability, extensibility and scalability, eCash should benefit from wider adoption in the months and years to come, meaning you should be able to invest in this digital asset without adding too much risk to your crypto portfolio.

Closing Thoughts

Even though the eCash network is relatively new, it's already grown to be among the more popular options among crypto investors searching for a platform that focuses on privacy and security above everything else. The XEC token is a proven digital asset that's available for purchase on most popular exchanges, including Bybit.