BITQUICK.CO Overall rating: 4.6 out of 5 based on 5 reviews.
Hard and soft cryptocurrency forks are not new in the cryptocurrency world. Thus, a new Bitcoin’s fork appeared not so long ago. Despite the fact that a number of forks have already been made last year and some more are expected in 2018, the most controversial is the new one – Bitcoin Gold fork.
BitcoinGold in most aspects has similar principles as Bitcoin. However, this network is based on the other algorithm known as proof-of-work and called Equihash. Proof-of-work means that the more work your machine does, the more chances you have to add a new block to the chain.
The main idea of Equihash is that it is limited by memory, not computing power. The process starts with a list of pseudo random bit strings derived from a block that a user wants to add to the chain. In turn, user’s machine tries to find a span of parameters of the strings. After that, the chosen strings are linked together and then hashed to the aim (getting a coin) of calculating the value below a pre-defined value.
The process requires memory to solve the problem – the more memory one can afford, the faster he will get the reward.
Due to the proof-of-work principle, Bitcoin Gold can be mined on home computers with more or less powerful GPUs. Developers believe that this is a nice way to make mining more democratic and accessible to everyone, who want to get some coins.
When Bitcoin Gold was launched in 2017, most community members were convinced that this project was inspired by developers’ greed, as they did a post-mine, retroactively mining the first 100,000 BTG coins on their own. According to the rumors, this currency was arrogated by the BTG founder, Jack Liao. However, the purpose of this was a necessity to make a side supply to grow and support the decentralization of the network.
Some of our readers may wonder if there were any reasons for developers to focus on decentralization as the main issue. Isn’t BTC already decentralized? Not only a BTC coin but the entire network is independent of the government, state regulations or major banks and financial systems. This currency is available anywhere in the world and uncontrollable by definition. That’s true, but the developers weren’t worried about the BTC output problem, instead, they were concerned about the accessibility of the mining process. The main problem is that the complexity of the mining grows, therefore only the largest ASIC farms may be efficient in this activity. These ASICS are expensive and difficult to procure. Therefore, the existing farms control the hash power within the network, decreasing decentralization, which is the central principle of cryptocurrencies.
Developers came up with a Bitcoin Gold fork idea to move the Equihash consensus algorithm and make BTC Gold ASIC more steadfast, returning the mining powers to general users.
Also, developers aim to add more transparency to the network, as well as to solve the distribution and protection issues inherent to Bitcoin. This way, more people interested in cryptos, may get an access to the mining process easily.
Plus, new security methods have been implemented, too. One of these measures is creating unique addresses for BTC Gold wallets, separately from Bitcoin.
As for the transparency nuance, Bitcoin Gold developers took care of making their project an open-source, created by enthusiasts from all over the world. This means that the source code of Bitcoin Gold is now available for investors and users.
In April 2018, BTG had 246 reachable nodes, with the highest concentration in USA, Germany, and France.
In February, BTG created the blockchain explorer to let the network run on a Bitcoin Gold Bitcore node, hosted by the Bitcoin Gold Organization and supported by SatoshiLabs.
Later, Bitcoin Gold experienced another controversial issue, as the developers included a hidden 0.5% fee in a BTG mining pool, however, some experts say that this action was politically motivated. Considering the fact that the code has an open source, the fee was not actually hidden. Moreover, it was lower than a standard 1-3% charge in most major pools. On the one hand, developers should have announced the fee publicly. On the other hand, the open code explains this overlook.
Being a relatively young coin, BTG maintains a $443 660 864 market cup and remains one of the most desirable coins at the market.
Realizing that Bitcoin Gold is connected to Bitcoin and the cryptocurrency world as a whole, developers have dedicated a lot of efforts to improve not only BTG, but the entire cryptocurrency system.
Despite some issues that emerged after BTG has been launched, the team of its founders and developers work hard to make this currency better and more accessible. Despite the fact that they may change their core goals in the process, they really are involved in the global issues faced by Bitcoin and other currencies.
We don’t know how exactly BTG’s future will look like, but we hope that the team of developers will incorporate even more smart tools to struggle decentralization problem and reach their ambitious goals.