The Bitcoin Cash network has completed its most recent upgrade, introducing the highly anticipated adaptive blocksize limit (ABL) algorithm. This innovative feature streamlines the process of adjusting the block size limit to meet the network's throughput demands effectively. At 9:24 a.m. Eastern Time on Wednesday, the network successfully mined five blocks under the new consensus rules.

Bitcoin Cash Implements ABL Algorithm in Network Upgrade
Bitcoin Cash has finalized its latest upgrade, incorporating "ac-0353f40e," also recognized as the adaptive blocksize limit (ABL) algorithm. This new implementation automatically modifies the block size limit using a specialized algorithm. The primary objective is to enhance the straightforward adjustment of block sizes in response to the actual transaction load on the network, eliminating the need for manual consensus, a process that can be time-consuming and susceptible to social attacks.

Since 2015, proponents of larger blocks have advocated for increasing the block size limit to scale the network effectively and realize widespread adoption as a peer-to-peer electronic cash system. Advocates of 'big blocks' assert that Satoshi Nakamoto's original vision for Bitcoin emphasized low transaction fees and quick confirmations, objectives that larger blocks can facilitate by accommodating more transactions per block. They argue that Bitcoin's existing 1MB block size limit creates congestion, resulting in higher fees and reduced transaction speed, making it less practical for daily use.

By enlarging the block size, Bitcoin Cash aims to provide a more efficient and scalable solution, ensuring continued accessibility and practicality for global transactions. The new algorithm enables Bitcoin Cash to dynamically adjust its block size, maintaining network robustness and responsiveness to fluctuations in usage without altering the underlying game theory or incentives. By automating this process, Bitcoin Cash reduces the 'meta costs' associated with manual adjustments and safeguards against potential disruptions during consensus.

The adjustment algorithm operates based on an exponentially weighted moving average (EWMA) of historical block sizes to ascertain the appropriate block size limit. This involves a 'control function' and an 'elastic buffer function' working in tandem to adapt the block size in real-time. The control function reacts to block size fluctuations by incrementally adjusting the block limit, ensuring smooth and predictable alterations. Simultaneously, the elastic buffer offers additional capacity to accommodate sudden spikes in block size demand without stressing the network.

These adjustments are rigorously defined and parameterized to ensure the block size adapts adeptly to real-world conditions, maintaining a balance between stability and flexibility. The algorithm establishes a minimum block size threshold and can upscale the limit in response to heightened block utilization while upholding network efficiency and security. On Reddit, Bitcoin Cash supporters expressed satisfaction with the recent upgrade, with one user suggesting that the change has potentially "solved the scaling debate, possibly forever." According to another Redditor, "[Bitcoin Cash] has resolved on-chain scaling."