Bitcoin Blockchain Forks: Bitcoin Gold

Bitcoin Forks

Bitcoins most valuable underlying asset

Bitcoins blockchain is renowned for its enhanced security protocols, digital signatures, and unique process used to confirm and store transactions. Every transaction is validated and recorded to the blockchain, through a secure and verifiable process called mining.

Mining is the process by which computers dedicate power to the network for validating cryptocurrency transactions. By distributing its ledger to thousands of validators combined with millions of miners, its impossible to predict which one will be the next to enter a block of transactions onto the ledger.

Decentralized mining is arguably Bitcoins most valuable perk; its peer to peer blockchain network is vital to bitcoins sustainability. It removes any need for third parties to facilitate transactions and takes the transaction fees out of the hands of the banks and into the hands of everyday people.

The process also solves double spending, a problem that crippled all other digital currencies before Bitcoins release. Double spending fraud from central bank accounts causes one of many issues in today’s world financial system. Optimists are hoping for cryptocurrencies to replace traditional payment systems within the next few years.

Skeptical Prediction

Bitcoin is the leading cryptocurrency in the modern age which has been successfully able to provide as much as 2000% ROI at its peak. Skepticism is the primary cause of bitcoins market value fluctuation, making it appear to be unstable. Some professionals see this as a perfect opportunity to capitalize on investing at today’s lower cost.

Hundreds of experts believe that the undisputed leader in cryptocurrency will break out again by July 2018, this time surpassing the December 2017 record price of $19,511 per bitcoin. Based on the research I’ve gathered, I logically trust that cryptocurrencies are the best investment option on any market, ever.

Even though Bitcoins price portrays a positive future, developers, investors, and enthusiasts will continue to debate opinions, flaws, and solutions among the vast crypto community. Branching points of view are the natural evolution of cryptocurrencies; this is how technology progresses and how new cryptos communities spring to life. Everyone is entitled to their perspective. On the one side, many see the glass half full, while those on the other side see it as half empty.

Centralized Exchanges

Decentralizing the crypto exchange system is a promising way to lower barriers to entry to use said services. Crypto exchanges enable easy trades between currencies, but the community cries out complaints, asking for more focused user experience. It’s possible that in the future decentralized exchanges may become the primary channels through which economic activity in the world economy trades.

Bitcoins Centralized Mining Problem

A major problem associated with decentralization was the inability to cash the shares frequently by the miners. This problem can be overcome by making payments off-blockchain through an off-chain payment channel. Opening individual channels for each miner will not only make small payments more flexible but miners will surely get paid each time the pool finds a block.

Centralized mining pools are formed, to gain a competitive edge and win more block rewards, These pools gather miners as a collective force of processing power and distribute block rewards based on the number of successful attempts each miner made at solving the block. Though mining pools allow miners to cash out shares into bitcoins there quickly, there are serious security risks that make it possible for pool operators to steal a deserving miners block reward easily.

Centralized mining farms are another huge problem for Bitcoin miners. It Requires special insider connections or a substantial amount of capital to purchase enough mining equipment to earn any profit without the help of a pool. Even if you have the equipment, you face more difficult challenges such as setting up the equipment, finding a sufficient source of electricity, and affording the costs of maintaining such an exhaustive operation.

Make Bitcoin Decentralized Again

In case your not familiar with the saying, it is the main reason why bitcoin split into two separate blockchains in late 2017. When bitcoin forked, the permanent record of the blockchain changed its course of direction from that block and onward. Thus, BitcoinGold was founded with an open invitation to them as they aim to “Make Bitcoin Decentralized Again!”

Bitcoin is making improvements, but still ignoring the “Elephant in the room.”

Bitcoin has recognized that these are serious issues, by taking some of the necessary steps in solving them with some protocol changes, including the SegWit and Lighting Network upgrades.

The lightning network is one is a trust-less payment technology used by Bitcoin. It’s capable of committing thousands of transactions per second. For Bitcoin, it is the second-layer(sidechain) solution to its Scalability problem. Microsoft has announced developments using Blockchain Technology with Second-layer Solutions. Claiming that the Lightning Network is necessary for Bitcoin to reach a global scale.

BitcoinGold point’s out the problem, even calling it out by name.

BGold continues to use SegWit and is upgrading to the Lightning Network soon. If you support decentralized money and the disruptive power of blockchain, then your values are aligned with the purpose of Bitcoin Gold. Bitcoin Gold empowers new people from around the world to get involved and profit from mining with only standard computer hardware.

Although in most ways Bitcoin Gold works the same as Bitcoin always has, there are some significant differences:

  • Bitcoin continues to centralize by enabling unfair ASIC mining devices.

  • Bitcoin Gold blocked ASIC devices by simply changing its algorithm from SHA256 to Equihash.

The Equihash algorithm relies more on memory rather than exhausting computing power, neutralizing the effect of ASICs ability to solve the algorithm faster. But on May 3, 2018, Chinese crypto-mining giant Bitmain announced the launched of the Antminer Z9 mini, a dedicated Equihash Miner, aimed to target the mining of Equihash based cryptocurrencies such as Zcash, Komodo, and bitcoin gold.

The very next day, the BTG team responded publicly to Bitmain, with this bold statement:

“This week, we learned that the dominant specialty crypto mining hardware maker (Bitmain) had released an “ASIC” miner for Equihash, which means it would be able to mine BTG if we were to allow that to happen. ” “We will not allow that to happen.”

BTG’s loyal ecosystem of developers from third-party wallets, mining pools, mining software, and exchanges responded quickly to confirm it will back the BTG team. Confidently announcing they will form a swift plan, by learning from the success of Monero’s success in blocking an attempt by Bitmain to develop similar hardware aimed to attack the CryptoNight algorithm.

“When a Monero-mining ASIC was being released by Bitmain in March, the Monero developers changed their code to make those miners ineffective. We applaud their actions – and their success!”

Finally, the team summed up the response, assuring the community that they will continue to stand firm in their determination and hold true to their values.

“We’ll ensure that the ability to mine BTG is always available to anyone with access to a GPU – staying true to our mission, and keeping our promise to the BTG Community.”

Bitcoin Gold Community

With a devoted community of nearly 150,000 members, 25,000 facebook followers, 70,000 twitter followers. On top of that, their dedicated contribution to the future of business and technology speaks volumes for their endowment. As official sponsors of CaseIT, BTG is helping the next generation of young entrepreneurs prepare to change the world, by encouraging them to redefine conventional business thinking, through an annual MIT business competition.

BTG RoadMap

2018 RoadMap update for more information click here or visit www.bitcoingold.org