First it was Bitcoin, then came Bitcoin Cash, and now Bitcoin Gold – it’s astonishing to see how rapidly new forms of digital currency are being introduced. There could be maximum 4 cryptocurrencies that can bear the title of Bitcoin, if a small group of developers and miners execute a planned blockchain hard fork during this month.
For those who don’t know about what hard forking is, it means bringing about a big change that alters the protocol and makes previously invalid transactions and blocks valid. It can be the other way around as well. However, this requires all users or nodes to upgrade the protocol software to its latest version.
In August, we saw the hard fork that gave birth to Bitcoin Cash. A lot of bitcoiners have predicted or rather waiting for a fork to take place with their Segwit2x plan this November. However, most of bitcoin advocates are not aware of a new fork, known as Bitcoin Gold, that has been planned to be launched on October, 25.
Bitcoin Gold May Change the Consensus Mechanism
Bitcoin enthusiasts may likely to have another form of Bitcoin to invest in by the end of this October through another hard fork that will produce Bitcoin Gold. The founder of Lightning ASIC, Jack Liao, announced this project in July on Bitcointalk.org for the first time. The aim of the forked protocol is to bring about a change in the consensus algorithm of Bitcoin that will allow users to readily mine Bitcoins on a GPU interface, among other changes. Bitcoin Gold is going to be built on the latest Equihash algorithm that has been used by Zcash, instead of the original SHA256 of Bitcoin, according to the development team.
The website explains it as follows: ““Bitcoin Gold implements the UAHF (User Activated Hard Fork) proposal to accept GPU mining. Miners can choose the size of the blocks they want to mine, with a default of 1 MB. It includes replay and wipeout protection.”
The Unknows of Bitcoin Gold
Like most projects to date, the details pertaining to Bitcoin Gold are still a bit fuzzy, and even project leaders can’t clear out all the confusion in the air. Pseudonymous of Bitcoin Gold lead developer h4x said that there are still things need to be figured before exact details, like hard fork’s block height, can be disclosed.
According to the details mentioned on the website, an initial coin offering (ICO) was also being planned for Bitcoin Gold, which will allow the developer team to have 1 percent of the coins, but the text was removed shortly after. Amidst all the uncertainty, the funding part is quite clear. Considering the split nature, every user will be provided with the same amount of BTG related to their private key at the time.
With work on Bitcoin Gold going on at a steady pace, and another hard fork scheduled for the next month, a majority of the previously made predictions are slowly turning into reality.
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