Bitcoin Diamond cryptocurrency review

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Bitcoin Diamond (BCD)

Bitcoin Diamond is another fork of Bitcoin. This cryptocurrency appeared as a result of the separation of the chain in November 2017 (after block 495866 in the Bitcoin blockchain). The purpose of the cryptocurrency is the same as that of the original Bitcoin, it is a means of payment with which it is convenient to pay on the network. Unlike basic Bitcoin, BCD resolved a number of critical issues. Official site btcd.io.

Bitcoin is the first successful cryptocurrency, it was created in 2009, it was created as a replacement for fiat currency. All his forks pursue the same goal, but are created due to the fact that the developers are unhappy with a number of shortcomings of the original Bitcoin. At the time of creation in 2009, these shortcomings did not seem critical, but as cryptocurrencies grew in popularity, they began to have a serious impact on the development of crypto. There are several key issues for network development.

Problem number 1. Low transactional capacity. Recall – transactions are grouped into blocks and then written to the blockchain. In the original Bitcoin, the block size is 1 MB, this is the reason for the low transactional capacity of the crypto.

Problem number 2. Problems with privacy protection. Bitcoin is designed in such a way that you can track the balance of other users’ wallets. When withdrawing money from a wallet to fiat, it is possible to establish the identity of the owner of the crypto wallet.

Problem number 3. High commissions. Compared with the beginning of 2018, the situation has now leveled off somewhat, but still the commission remains high. This holds back the development of the network and provokes the outflow of users to altcoins with lower commission fees.

Problem number 4. Long transaction confirmation. Now, according to statistics, you have to wait about 8-15 minutes. But in the past there were periods when transaction confirmation took up to several hours. Many payments have not been confirmed. In the future, this situation may happen again, there is a problem of network scalability. With the increase in the number of Bitcoin users, there are problems with the speed of transferring funds.

All forks are created to solve the above problems. In Bitcoin Diamond, they are going to solve them as follows.

The solution to problem number 1. The block size is increased to 8 MV, i.e. 8 times compared to the original Bitcoin.

The solution to the problem №2. New encryption methods are used, which should solve the privacy problem when using cryptocurrency.

Solving the problem number 3 and number 4. Increased blocking speed for each block. This should reduce transaction confirmation delays and lower their cost.

How is Bitcoin Diamond different from the original Bitcoin

Behind the hard fork there were three teams at once: Evey, 007 and another, who wished to remain anonymous. On November 24, 2017, at block No. 495866, they launched a new chain called Bitcoin Diamond (BCD). According to the developers, in the original network they were not happy with three things: low bandwidth, high fees, poor data protection. What have they changed?

  • They increased the block size to 8 MB, so the generation of blocks was accelerated 5 times.
  • Increased security. Introduced new encryption methods that hide personal data and transaction information. In particular, the BIP-44 standard, in which a master key is created for each wallet (only the owner knows it), which generates additional keys (used for transactions). In addition, they made built-in protection against double charges.
  • Implemented the Lightning Network protocol to increase transaction speed and network scalability.
  • Changed the mining algorithm to an optimized X13.

In December 2017, they launched a stable mainnet, and at the end of 2018, they started talking about a massive expansion of the infrastructure. The developers decided not just to eliminate the current problems of the blockchain, but to create a convenient payment tool on a global scale. In 2019, they presented BCD Pay – an international trading platform where any product or service can be sold and bought for BCD or BTC. In parallel with the site, they launched an application of the same name for online shopping, personal transfers and subscribing to newsletters.

The maximum issue is 210 million coins – ten times more than in the original network. Immediately after the hard fork, users with BTC balance received new coins for free – at a ratio of 1:10. Distribution took 80% of the coins. The remaining 20% ​​can be mined or bought.

How to mine Bitcoin Diamond and where to store cryptocurrency

According to the idea, cryptocurrency is sharpened for GPU mining. The block is generated in 10 minutes, the reward is 125 coins. The necessary software for mining is on Github – you can download it from the link. There is also a list of mining pools for collective mining.

Optimal equipment:

  • Video Cards: GTX 2080Ti, GTX 2080, GTX 1080Ti, Radeon Vega Frontier Edition.
  • ASIC miners (only models supporting X13 are suitable): Giant 900, Baikal mini.

If earlier it was possible to earn on mining, today this method is in doubt. Along with complexity, electricity costs have also risen. In order not to go into minus, pre-calculate the profitability of production using a special calculator.

It is much easier for investors to buy coins on cryptocurrency exchanges. The main trading is conducted at three sites: VinDax (43% of the total turnover, paired with ETH and BTC), Bw.com (21%, USDT and BTC), OKEX (20%, USDT). Many top exchanges – for example, Binance, Gate.io, Huobi Global, KuCoin – also added altcoin to the listing. But their share in the general auction is insignificant (from 0.1% to 4%).

Two crypto-wallets are provided for storing funds at once. You can download them in the “Download” section on the official website:

  • QT Wallet (for Windows, Linux, MacOS);
  • Electrum Wallet (same operating systems + Android).

BCD Token Cost

BCD is a token that was automatically accrued to all Bitcoin token holders automatically after the fork. In this case, the accrual was carried out in a proportion of 1:10. That is, if you had 10 Bitcoins on your wallet, you received 100 Bitcoin Diamond tokens.

So the maximum number of BCD tokens cannot exceed 210 million tokens. Moreover, 170 million tokens were issued immediately and distributed among Bitcoin holders. This is done because almost 17 million BTC tokens have already been extracted, given the proportion of the number of issued BCD coins and equal to 170 million.

At coinmarketcap.com, the capitalization of Bitcoin Diamond is $ 346.3 million. Moreover, the cost of tokens has been constantly decreasing since listing on crypto exchanges. If at the time of launching into circulation immediately after the fork, the rate reached $ 100 for 1 BCD token, then at the time of preparing the review for 1 coin they give only $ 2.26, that is, the rate fell almost 40 times. This indicates a distrust of the crypto community in cryptocurrency and a reluctance to invest in it.

 Conclusions

Forks of Bitcoin in theory carry a good purpose. They are created because the development team does not like to put up with the shortcomings of the underlying crypto. Some successful, but there are not too promising beginnings. Bitcoin Diamond is one such not-so-good example.

Attention should be paid to the comments of major cryptocurrency market players. For example, at the end of 2017, Ledger (a company that produces hardware crypto wallets) announced that Bitcoin Diamond was involved in fraudulent schemes. Clients go to sites related to cryptocurrencies, where they are asked to enter a passphrase and then simply steal the PTS tokens.

There is a theory that the BCD developers themselves are doing this. There is practically no information about this fork, there are no technical details, there is not even information about the developers. All that is offered is to believe the promises on the official website.

Given this, it is difficult to recommend Bitcoin Diamond as an object for investment. It’s better not to pay attention to this fork at all.

 

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