Cryptocurrency Definitions: Bitcoin Gold

Cryptocurrency Definitions: Bitcoin Gold

Bitcoin Gold (BTG) was first suggested by Jack Liao in May 2017. This new version of Bitcoin involves the shifting of the hashing algorithm to utilize Ethereum’s installment, opening up mining capacities into consumer grade hardware, allowing everyday users to mine the new money. The goal of Bitcoin gold is to become a better “gold” compared to Bitcoin. The primary way they have resolved to do this is trying to resolve miner centralization via a proof-of-work shift. The fork took place on October 25th 2017.

This fork involves the shifting of the hashing algorithm to utilize Ethereum’s installment, opening up mining capacities into consumer grade hardware; consequently allowing everyday users to mine the new money. This, for starters, can lead to pressure on mining monopolies as fundamental powers and make the mining market more accessible. Through reducing the power of renowned mining platforms, it’s hoped that the market can be more open and decentralized. Whether or not consumer grade hardware will have the ability to efficiently output enough mining capability to present a significant obstacle and instigate this ‘break’ up remains to be seen.

Changing proof-of-work is generally likely to require a hard fork and bitcoin gold has made a decision to go that path. The proof-of-work that they’ve chosen is Equihash, a memory-hard algorithm that’s fairly ASIC resistant and also employed by ZCash. The concept is to give mining straight back to the users that can start utilizing CPUs and GPUs to mine. Bitcoin gold programmers are also contemplating a premine of around 1 percent. How that will be executed is uncertain, but will probably include taking some of their mining reward as they’re committed to keeping BTG in the 21 million limit.

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