What is Bitcoin Gold or BTG?
Developers are introducing and making preparations for the launch of their bitcoin gold cryptocurrency network.
Well, it’s simply an alt coin and will come to pass through a hard fork of the primary bitcoin blockchain. The reason behind this hard fork will be to improve and provide better value than the pioneering Bitcoin that is in the market today.
The primary way that they are going about trying to improve the structure of the existing BTC coin is to solve the miner centralization problem. They are seeking to do this with a proof-of-work change.
The problem with changing a fundamental aspect of the structure like proof-of-work is that will require a hard fork and the people at BTG have decided to take this path and see where it leads them.
Equihash, is an ASIC resistant, memory-hard algorithm used by ZCash. This is the proof-of-work that they have chosen.
They believe that this will empower the individual and he/she can start mining using his CPU and GPU. Stating “Bitcoin Gold is a community-activated hard fork of Bitcoin to make mining decentralized again.
They also state that “Bitcoin Gold is also a real blockchain to pilot Bitcoin upgrades.”
The developers are pondering the idea of a premine which would have a limit of 1%. What are the modes of execution for this idea? There really isn’t much information on this at the moment. They are seeking to keep BTG at a 21 million limit.
Where did it come from?
There was no community consensus building or any voting that took place in this hard fork proposal. This is done by a group in the community of their own accord moving forward with the cause of decentralizing the mining system. They believe this is so because ASIC mining is prohibitive for the average user due to costs.
They also believe that something may happen to BTC in the future and believe they will be a good fall back.
So, who is behind this interesting idea?
A man named Jack Liao, Jack is a 42 year old, Chinese educated man and he’s the chief executive of a bitcoin mining operation called LightningASIC.
Exchanges such as Bittrex and Coinbase have both stated in the middle of October of this year that they foresaw problems with them being involved in this plan. This was a major concern, if major exchanges can’t support the fork due to a variety of reasons, then BTC gold wouldn’t really be ready to launch.
There were also other problems relating to the code that needed to be fixed such as the threat of replay attacks. There were concerns earlier that the code didn’t have sufficient protection to ward off replay attacks. Replay attacks happen when a transaction that happens on the new chain is replayed on the old bitcoin chain. This means that people that are seeking to transact with their BTG may be placing their BTC in jeopardy.
Stemming from the prior concern is that even though BTG transactions may not have an effect on the original code on the original chain, bad actors can still have some reach that has negative impacts on the old chain via their replay attacks.
Remember that increasing the amount of coins does not correspondingly increase the value due to the fact that after the hard fork the value of the original and latter is based on the economics of demand and supply and human behavior.
The BTG group are planning to go ahead and launch on November 12 2017.
A hard fork of this sort needs care from a lot of parties, users, miners, and other services to stay afloat and be present over the long haul.
This is still not something that is fully established as this is being done a small group within the space and not with the go ahead of the general community.
The Bitcoin cash group were able to get all the parties together but many are questioning how many forks of this nature will be tolerated by the community. There are more concerns that all this forking can dilute the brand value of bitcoin and the general concept of decentralization stunting growth of the crypto space in general.
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