It was just two months ago that we had the bitcoin blockchain split which gave rise to Bitcoin Cash (BCH) and in just a couple of weeks, we are likely to witness another split of the blockchain. Just like the earlier split, this split is expected to give rise to a new cryptocurrency – Bitcoin Gold.
Bitcoin gold is styled as a sort of rebellious currency and it aims to follow a similar launch pattern as bitcoin cash. The major objective of this new split to present an improved protocol, which is to particularly challenge bitcoin cash. Details about the split are however now emerging and shaping up.
Jack Liao, CEO of Hong Kong based mining firm LightingASIC is to be the lead of the project. Bitcoin gold is slated to be launched on the 25th of October and the currency is expected to start trading on exchanges by the 1st of November.
The news of this split is still not yet known by the wider cryptocurrency community but the few who are aware of it are already debating the essence of another split. Considering that bitcoin cash divided the community with its emergence some believe that another split is an unnecessary distraction that should not happen – especially because from indications, it seems bitcoin gold will be much smaller than bitcoin cash and considering that the later is currently only about 12 percent the value of the main bitcoin currency.
Bitcoin gold aims to create a truly decentralized bitcoin blockchain which some sections of the community might see as a welcome development. The developers behind it hope to open up its mining to a larger number of participants by replacing bitcoin’s mining algorithm with another that will make it possible to mine with graphic cards.
“Bitcoin gold will implement a proof-of-work change from bitcoin’s SHA256 to Equihash, a memory-hard algorithm that is ASIC-resistant and optimized for GPU mining” pseudonymous bitcoin gold developer “The Sorrow” stated.
It is rumored that the plan for bitcoin gold is being hatched in China and this adds another chapter to Liao’s endeavors since he is known to largely focus on litecoin mining. Liao believes that too few people seem to have too much influence on the existing bitcoin network as such a justified reason to have another split so as to considerably reduce the influence of such elements.
The project leaders for this bitcoin fork are yet to give full details about this split. The pseudonymous lead developer for the bitcoin gold project “h4x” said that the project is still evolving and details about block height for the hard fork are still being discussed.
One clear thing though is that just like the bitcoin cash split, every bitcoin owner at the time of the split will get an equal amount of bitcoin gold associated with their private key. The value of the bitcoin gold can however not be estimated yet.
“It is a minimalist fork for the Bitcoin Core codebase in the spirit of litecoin – only a few conservative modifications” h4x said. “Organisms derive benefits from creating offspring. With bitcoin gold we are conducting an experiment to see if that principle holds true in the world of blockchains” he added.
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