What is Bitcoin Gold?
Bitcoin Gold (BTG) is a forked offshoot of the famous Bitcoin protocol, and it was created by a group of bitcoin developers and miners in 2017. Bitcoin Gold’s price took a dive of over 60% since it began trading. Bitcoin Gold uses an equihash algorithm which takes up a lot of memory space; hence, the ASIC mining hardware cannot be used, which leaves miners the option of using the GPUs. The block size of 1MB remains unchanged, including the block time which remains at ten minutes between blocks. Also, the maximum supply remains unchanged at 21 million. According to the developers, it is likely that smart contracts will be integrated later.
Bitcoin Gold aims to change the way mining is done by making it such that the really potent mining machines used for mining Bitcoins will become useless, and also attract people to the Bitcoin Gold system, so as to release the bitcoin network from large companies that transact with these products. The Bitcoin Gold project aims to seek a redress for bitcoin’s technology. It intends to achieve this by changing how its contest for rewards is carried out. This redress is called a “hard fork”.
Main Features of Bitcoin Gold
Bitcoin Gold has some unique features which make it different from some other cryptocurrencies, some of the features are:
- Transparency: Volunteer developers built Bitcoin Gold, which is a free open source system that is supported by an ever-expanding community of bitcoin buffs, the world over.
- Fair Distribution: Bitcoin Gold as a hard forked offshoot of Bitcoin’s blockchain effectively allows for the distribution of new digital assets to people all around the world, who are interested in cryptocurrency. There are other methods involved, such as; the existence of centralized ownership in a small class, using the genesis block for the creation of coins.
- Decentralization: Equihash is the PoW algorithm adopted by Bitcoin Gold for decentralizing mining. This PoW algorithm’s speed on the ASIC miner is questionable, this is why GPUs are used instead.
- Replay Protection: Safety is a very important feature of the Bitcoin system, and as such, there has been the implementation of special wallet addresses and replay protection; these features are important, in that they protect the coins and their users from different types of malicious attacks and threats.
- Bitcoin Gold rather than scale bitcoin to garner more supporters has tweaked bitcoin with the aim of addressing the decentralization challenges bitcoin may be facing. However, there is an argument as to the proficiency of this; it is believed that the move by Bitcoin Gold will make the network easily accessible to others, including unwanted externals.
Difference between Bitcoin Gold and Bitcoin
- Bitcoin Gold and Bitcoin though operating on the same framework have their differences in distribution, and the differences include:
- The Bitcoin Gold developers prior to making the code publicly open sourced, have created the Bitcoin Gold cryptocurrency.
- The Bitcoin Gold development team will be paid 1 percent of the total amount of mined cryptocurrency tokens before the blockchain is made public.
- While Bitcoins difficulty adjustment takes 2 weeks, The Bitcoin Gold’s difficulty adjustment is in each block.
- The PoW type used by Bitcoin is the ASIC, while Bitcoin Gold uses a GPU; technically this means Bitcoin Gold’s development team tweaked bitcoin’s consensus algorithm such that miners will be able to use GPUs for their Bitcoin Gold mining activities. This move to GPU mining is aimed at having decentralization effects on Bitcoin gold. According to what is contained in the team’s white paper, indicates that frequent users will be able to mine using GPU miners, hence, making a redistribution of hash power from corporate operations.
- There are plans to have a unique address format in Bitcoin Gold’s future release. The same cannot be said about bitcoin.
- Mining bitcoin with the ASIC mining hardware is cost barring to minor league miners, unlike Bitcoin Gold’s GPU mining hardware that has a low entry price that makes it very possible for the average person to become a bitcoin gold miner.
Bitcoin Gold Pros and Cons
- There is no need for expensive mining equipment, as mining Bitcoin Gold requires a GPU miner in place of the ASIC miner. It is believed that GPUs have decentralization effects on the mining.
- Bitcoin Gold extends decentralization by ensuring those ASIC resistant algorithms are enabled. This is one of the flaws of SHA-256 discovered in Bitcoin.
- Similar framework with Bitcoin.
- Bitcoin Gold has been able to achieve so much in so little time, where collaboration with wallets and exchanges is concerned.
- Known brand, because of its name and association with Bitcoin.
- There have been reports of nefarious activities going on with the Bitcoin Gold development team. It is said that they were involved in a scandal that has to do with pre-mining. This development only portrays gross incompetence. There is evidence to show that the Bitcoin Gold team actually began pre-mining secretly and no feedback was given to the community.
- There is no support from Coinbase, due to the fact that the Bitcoin Gold team have declined to release the source codes for the project. Coinbase is refusing to support on grounds of security.
- With each bitcoin fork, the trusts in the forks reduce, and Bitcoin Gold is the third fork off of Bitcoin.
- The Bitcoin community is divided yet again.
- There have been sustained attacks on Bitcoin Gold, which implies a drop in the system’s reputation.
If your bitcoin was on an exchange when the Bitcoin Gold fork happened, you are advised to ensure you check to ascertain your exchange’s stand on Bitcoin Gold. You just may be lucky, if your exchange supported the split, hopefully, your Bitcoin Gold is right there in your account. However, if you had your bitcoin stored in a personal wallet, you are advised to check with your wallet provider’s customer care unit to guide you with information on how they have dealt with the split and how it affects your Bitcoins.