Things You Should Know About Bitcoin Gold Hard Fork Split!
Wake up, guys! There’s a new cryptocurrency in town… Announced in July, Bitcoin Gold would be available to anyone who owns a bitcoin, in a few hours. This new cryptocurrency will be available through a hard fork of block 491,407 in the bitcoin blockchain. So, let’s take a look at this bitcoin hard fork split and the skepticism related to it.
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Bitcoin Gold Hard Fork Split
An alternative version of the protocol will be launched at the block 491,407 on the bitcoin blockchain, and the new variant released is being called bitcoin gold (BTG).
The aim of this project is to improve the bitcoin’s technology and bring even more decentralization. It also wishes to tackle the observed problem of miners as a group having too much influence over the direction of the bitcoin network. In order to decrease this control, the new cryptocurrency will replace bitcoin’s current mining algorithm. Inexpensive GPUs will replace the ASICs.
What is a hard fork?
It refers to a permanent change in the blockchain making earlier invalid blocks/transactions (or vice-versa) valid. Or in simple words, a hard fork is a permanent deviation from the earlier versions of the blockchain. Therefore, the nodes from the older version will no longer be accepted in the new version. Hence, it creates two paths- one that continues on the older blockchain and other that carries on the new, upgraded blockchain.
What do you mean by blockchain?
A blockchain is simply a digitized, decentralized, public ledger of all cryptocurrency transactions. The chain acts as ‘completed’ blocks/transactions, recorded and added in a chronological order. Therefore, all the participants can keep an eye on all the cryptocurrency transactions, without a dedicated record-keeping.
What is Bitcoin Mining?
It is a peer-to-peer digital process of securing and verifying bitcoin transactions. The process includes miners to add transaction data to bitcoin’s global public ledger of past transactions. Each group of complete transactions forms a block.
And what is a bitcoin?
Bitcoin is a cryptocurrency and digital payment system that came into being in 2009. No one knows the identity of the person behind the currency. However, many speculate that it follows the ideas, defined in a white paper, of Satoshi Nakamoto (also unknown). It was released as open-source software. The whole system is peer-to-peer and users do direct transactions without any intermediary. Several network nodes verify each transaction and recorded in a blockchain. Do you know What Are The Best Alternatives To Bitcoin And Its Derivatives?
Why bother about bitcoin gold?
Bitcoin gold is the new alternate cryptocurrency to bitcoin. Its main two goals are:
- It wants to change the way mining works, leaving the most powerful mining machines (ASICs) redundant.
- It wants to attract more people to the new system over time. By doing so, the hope is to relieve the bitcoin network from large companies dominating the bitcoin network.
Bitcoin Gold – Good or bad?
The main reason behind bitcoin gold gaining popularity is the bitcoin’s name and transaction history. Moreover, each and every bitcoin owner will receive an equal number of bitcoin gold (1 Bitcoin=1 Bitcoin Gold) upon release.
However, many people are skeptical about the project. Satoshi Labs CEO, Marek Palatinus, who was behind bitcoin’s first ever mining pool, shares his concerns. He doubts if the project would be able to decentralize mining as planned.
And it’s not just him! The success of the project also depends on the support of business and mining groups. If they do, then how much value the alternate blockchain would create. If you are looking for more details, then check out Understanding Bitcoin Gold And The Philosophy Behind It!