The launch of Bitcoin Gold (Bgold) came after almost a month of preparation and the off-shoot started officially on November 12th, 2017. However, this is not the first project based on Bitcoin to split from its parent cryptocurrency. Bitcoin Cash (Bcash) claims that spot and it launched on August 1st of 2017. The selling point for Bcash was the goal of offering a solution to scaling problems with an increase in the limit of block sizes for Bitcoin. On the other hand, Bitcoin gold tries to decentralize the mining of bitcoins. There is one crucial way in which these two digital currencies differ. Bgold has a novel algorithm that is used for proofing work. Bitcoin uses SHA256, while the gold version makes use of the Equihash protocol known from security and anonymity driven alternative Zcash. The practical implications of this are profound. The widely used mining hardware (ASIC) won’t be able to work with Bgold. Despite the official date, Bitcoin gold actually split from Bitcoin on the 25th of October, 2017. But, there’s some good news here. Anyone who had Bitcoin in their possession at that time received the same amount of Bgold. The private keys that came along with this change are available for transfer into a special wallet for Bitcoin gold. Assets within have been available for transactions since November 12th. Those who haven’t yet checked for Bgold tokens should first read up more about to prevent the loss of private keys from malware attacks. To be specific, it is Block number 491407 that is the first to fork off from Bitcoin. This is the spot where Bgold transforms into a cryptocurrency of its own. There is one issue, however. Namely, at least 8,000 of the first will go to the team behind Bitcoingold, as they’ll have exclusive mining access. Their explanation is that this need to be done so that the difficulty of mining is brought up to levels that are expected. But, once this is done, anyone interested will be able to dig for Bitcoin gold. The 8,000 blocks will amount to 100,000 in mining rewards and this will go to various projects for developers working on the platform. There are a few more modifications made for Bitcoin Gold, but in the majority of cases, these just help secure a safe split between the two currencies. Bgold will reconfigure how difficult it is to mine based on when a block is mined, instead of two times a month. Other changes include fail-safes that prevent users from spending Bitcoin when they want to actually spend Bitcoin gold. When it comes to exchanges, Bgold has good support. Among those who have accepted the fledgling currency are HitBTC and Bitfinex. There is already significant trading activity from users and thus from these services. That’s why Bitcoin gold is experiencing good growth, in spite of volatile fluctations that have become a hallmark of all cryptocurrencies.
September 6, 2019 0 Comments