This paper is about the positive part $U^+_q$ of the quantum group $U_q(\widehat{\mathfrak{sl}}_2)$. The algebra $U^+_q$ has a presentation with two generators $A,B$ that satisfy the cubic $q$-Serre relations. Recently we introduced a type of element in $U^+_q$, said to be alternating. Each alternating element commutes with exactly one of $A$, $B$, $qBA-q^{-1}AB$, $qAB-q^{-1}BA$; this gives four types of alternating elements. There are infinitely many alternating elements of each type, and these mutually commute. In the present paper we use the alternating elements to obtain a central extension $\mathcal U^+_q$ of $U^+_q$. We define $\mathcal U^+_q$ by generators and relations. These generators, said to be alternating, are in bijection with the alternating elements of $U^+_q$. We display a surjective algebra homomorphism $\mathcal U^+_q \to U^+_q$ that sends each alternating generator of $\mathcal U^+_q$ to the corresponding alternating element in $U^+_q$. We adjust this homomorphism to obtain an algebra isomorphism $\mathcal U_q^+ \to U^+_q \otimes \mathbb F \lbrack z_1, z_2,\ldots\rbrack$ where $\mathbb F$ is the ground field and $\lbrace z_n\rbrace_{n=1}^\infty$ are mutually commuting indeterminates. We show that the alternating generators form a PBW basis for $\mathcal U_q^+$. We discuss how $\mathcal U^+_q$ is related to the work of Baseilhac, Koizumi, Shigechi concerning the $q$-Onsager algebra and integrable lattice models.