Tuesday, 16 October 2018

What is Bitcoin Gold? All You Need to Know.

Bitcoin gold (BTG) is the result of Hard Fork of the Bitcoin Blockchain. Bitcoin Gold is the new branch of Bitcoin Blockchain at block 491407. There is no alteration in the original bitcoin Blockchain and this new branch split off to become a new cryptocurrency. According to the founders of Bitcoin Gold, the idea behind this new coin is to change the aspects of mining on Bitcoin Blockchain.

bitcoin-gold


Generally, most of the bitcoin mining is done by large companies. That being said, these giant companies are ruling bitcoin mining which has made bitcoin Blockchain too much centralized. Bitcoin gold is the attempt to implement changes in order to make mining fairer for all. With Bitcoin gold, anyone can start mining with basic system hardware and thus it is an attempt to make the system more decentralized. Not only larger companies will control the mining, but it is also now a wide network of miners.

Initial Bitcoin Gold


As we all know Bitcoin Gold is the hard fork of Bitcoin Blockchain, so founders decided to distribute the initial Bitcoin to everyone who owned bitcoin before the HardFork. Holders received the same amount of Bitcoin gold in 1:1 ratio. There is no steps or request required to get the Bitcoin Gold. After the coin distribution, the only tricky thing is to claim your coins. I said tricky because this depends on your wallet set up. You can trade Bitcoin gold in almost all the popular exchanges like Binance, HitBTC, Okex etc.

Bitcoin gold mining


For the miner, Bitcoin gold mining is good news. The set-up is quite simple, and you do not need ASICS to mine, just a GPU would be enough.

1. Join a mining pool among the top list.
2. Choose your popular option(pool.gold).
3. Download the mining software as per your pool.
4.Set up your BTG(Bitcoin gold) wallet. You can choose one from BTGwallet.online(https://btgwallet.online/) and Bitcoin Gold core wallet(https://github.com/BTCGPU/BTCGPU).
5. There will be separate instructions of mining based on your GPU


After the HardFork, we often assume that the new currency is the competitor to the base one. However, this is not true in the case of Bitcoin Gold. The algorithm of BTG is different and no current Bitcoin miner would want to switch to this anti-ASIC cryptocurrency. Bitcoin gold competes with other anti-ASIC cryptocurrencies like Ethereum and there are a lot of challenges too. BTG is having the advantage of its distribution and popularity due to bitcoin.

Replay protection


Bitcoin gold is an open source community driven project developed by volunteer developers. This project is completely transparent and growing at a very good pace. With everything going well there is a lack as well. When it comes to security Bitcoin Gold is not the choice of investors. BTG is still struggling with its security and protection. Replay protection is very much critical. BTG is the result of HardFork, and the shared wallet address and code makes it prone to replay attack. BTG team is working on a solution which involves SIGHASH_FORK_ID mechanism which limits the transaction to be transferred from BTC to BTG.

Final thoughts


Every new cryptocurrency is struggling to lead industry standards and promote decentralization mechanism. Bitcoin gold has the advantage of being popular and it is designed to promote decentralization in Blockchain network. However, there is nothing more exciting and new in Bitcoin Gold which makes it an individual investment. If you received your free BTG and you have faith in, there is no loss in holding your asset.

Bitcoin is still leading the chart and it is not easy to compete with such a strong history.