Bitcoin Gold (BTG)
Bitcoin Gold is the fork of the Bitcoin block. At step 491407, Bitcoin Gold miners began to create blocks with a new health check algorithm, and this led to a bifurcation of the block chain of bitcoins.
The original bitcoin blockchain will continue unchanged, but the new branch of the blockchain will separate from the original chain. The new branch is a separate blockchain with the same transaction history as Bitcoin, up to the fork, but then deviates from it. As a result of this process, a new cryptocurrency was born.
The goal of Bitcoin Gold is to make the release of Bitcoin again decentralized. Satoshi Nakamoto’s idealistic vision of “one vote for one processor” was replaced by reality, when a very small number of entities predominate in the production and distribution of mining equipment, some of which engage in abusive practices with respect to individual miners of the network as a whole.
Changing the Bitcoin operation algorithm from SHA256 to Equihash, all specialized SHA256 mining equipment will be obsolete for mining the bitcoin gold blockchain.
Thus, Bitcoin Gold will provide an opportunity for countless new people around the world to participate in the mining process with widely available consumer equipment, which is produced and distributed by reputable large corporations. More decentralized.
Conflict of interest
Bitcoin Cash and B2X are hostile forks that use the same PoW algorithm as Bitcoin – SHA256, which leads to constant conflict over the finite amount of ASIC smart equipment that is required to solve the SHA256 verification task.
Bitcoin Gold, on the other hand, uses the Equihash PoW algorithm, which cannot be solved using ASICs that were developed for Bitcoin. This ensures that Bitcoin Gold does not compete with Bitcoin for limited resources.
Instead, Bitcoin Gold will have a completely different intellectual infrastructure consisting of general-purpose computer hardware (GPU).
Advantages and disadvantages
An undoubted advantage is the innovative element of Bitcoin Gold – this is a new algorithm called Equihash, thanks to which mining can be done exclusively on the GPU (video cards of home PCs).
The cryptocurrency has an increased degree of security, the algorithm allows ordinary users to have access to the pools of miners. Thus, not only professionals can mine, but also users who have low power personal computers.
The BTG network features enhanced and enhanced code to provide enhanced overall performance.
Despite all the above advantages, many investors report poor protection against duplication. For this reason, various services confuse Bitcoin Gold with Bitcoin, and as a result prohibit certain operations.
A lot of controversy in the cryptocurrency community has caused developers to decide to conduct premining. According to the project administration, this was necessary to provide the system with finances for the first time after launch. How much thanks to this procedure, the developers obtained coins for themselves, remains unknown.
Bitcoin Gold Support
On the official website of the Bitcoin Gold project, 28 crypto exchanges are listed that support transactions in BTG. Among them: Bittrex, HitBTC, Bitfinex, Binance, YoBit, Change Now, Tdax, as well as many other platforms.
Crypto wallets that support BTG: Trezor Wallet, Ledger Wallet, Coinomi, Bitpie, Guarda, Freewallet. By the way, on January 7, the announcement of the launch of your own wallet – BTGWallet.online – appeared on the official website.
Mining pools: Pool.gold, Minergate, BTGPool Pro, Happy2Mine, Cloudhash, Multipool, etc. There are 16 of them.
As well as 4 network browsers: BTG Exp, BTG Explorer, BTG Explorer and Insight.
According to the founder of BTG, Jack Liao, mining giants have too much influence on the network and pose a threat to bitcoin. His main idea was to make the network more decentralized than bitcoin.
Immediately after the fork, the new cryptocurrency had its own slogan – “Make Bitcoin decentalized again” (“Let’s make bitcoin decentralized again”). However, experts believe that GPU mining will not lead to greater decentralization, as large companies control the graphics card markets.
Currently, mining of bitcoins is completely dependent on equipment on ASIC processors, which are mainly produced by companies such as Bitmain, Bitfury and Canaan.
This is largely due to the use of the Proof-of-Work algorithm and the SHA-256 algorithm in the bitcoin network – it is quite simple and does not require much RAM for calculations, but requires productive processors.
The Equihash algorithm, by contrast, is a fairly complex hash function and requires a lot of RAM to execute. This means that the production of ASih processors for Equihash will be much more expensive, and their performance will be slightly higher than the GPU. This robs the benefits of ASIC in mining Bitcoin Gold.
The risk of a repeat attack is inherent in every fork of a cryptocurrency and should be taken into account to protect users from loss of funds.
Bitcoin Gold implements Sighash_Fork_Id solution as a protection against reproduction. This is an effective two-way protection mechanism that provides a new algorithm for calculating the hash so that all new Bitcoin transactions are invalid on the Bitcoin Gold network and vice versa.
Unique address format
By default, both sides of the fork will continue to use the same address format. To avoid confusion, a unique address format is planned. The prefix PUBKEY_ADDRESS and SCRIPT_ADDRESS will be changed to a new one (not yet defined), which can be easily distinguished from bitcoin addresses.
While some are skeptical of Bitcoin Gold, it may seem really attractive to others because of the main goal of the project – to create a truly decentralized bitcoin.
It is believed that replacing the original SHA256 bitcoin algorithm with Equihash, which is believed to open mining using graphic cards (GPUs), will attract more participants, which makes large miners less relevant.
In case of launch, BTG is likely to become a protection against “mining monopolists” – for example, companies such as Bitmain, which have been criticized for too much influence on the network.
However, according to Zhao Dong, a crypto trader and investor, mining on the GPU cannot serve as a means of preventing centralization, since the GPU markets are controlled by Nvidia and AMD.