There’s a Bitcoin hard fork around the corner and it’s not 2x. Announced right before Bitcoin Metselspecie forked, Bitcoin Gold is scheduled to go live sometime te November. Ter this article, I’m going to explain what Bitcoin Gold is, how and when it will hard fork and what you’ll need to do to prepare.
What is Bitcoin Gold?
Bitcoin Gold is the brainchild of Jack Liao and is launching spil a hard fork of Bitcoin. The purpose of BTG is to become a better gold than Bitcoin. The chief way they have determined to do this is attempting to solve miner centralization through a proof-of-work switch.
Switching proof-of-work is generally going to require a hard fork and BTG has determined to go that route. The proof-of-work that they’ve chosen is Equihash, a memory-hard algorithm that’s fairly ASIC resistant and also used by ZCash. The idea is to give mining back to the users who can begin using CPUs and GPUs to mine.
BTG developers are also considering a premine of up to 1%. How that will be executed is unclear, but will very likely consist of taking some of the mining prize spil they’re committed to keeping BTG at the 21 million limit.
What’s so special about ASIC resistance?
ASICs are Application Specific Integrated Circuits. They’re different from CPUs te that they do only one thing, but they do it truly, truly well.
Bitcoin mining is presently fully predominated by ASICs, mostly produced by Bitmain, Bitfury and Canaan. This is largely due to the proof-of-work function (SHA256) being reasonably elementary and not requiring much RAM. Equihash, on the other palm, is a pretty sophisticated hashing function and requires a lotsbestemming of RAM to perform. That means it’s much more expensive to produce ASICs for Equihash and the speed build up isn’t almost spil much.
To give you an idea, a normal CPU can mine SHA256 at around 5–10 MH/s. An ASIC can mine SHA256 at around 5–10 TH/s, or about 1 million times more work vanaf 2nd than a CPU can. By comparison, a normal CPU can mine Equihash at around 10–30 H/s, where spil specialized equipment can do something like 1000–3000 H/s, or about 100 times more work vanaf 2nd.
Ter other words, the playing field is a lotsbestemming more level with Equihash than SHA256 due to the ASIC-resistance. Of course, it’s hard to know how much economics would switch if Equihash were to become spil profitable, but suffice it to say that the efficiency build up would still be much less than SHA256.
When are they going to Hard Fork?
Their project is to pick a block on October 25, 2018 to fork from, hence the date on their webpagina. That does not mean that their coin launches on that day, just that the Bitcoin blockchain gets frozen for the BTG chain on that day and fresh BTG blocks built on top zometeen.
Presently, they are programma an early November release, which means that their blockchain will have no blocks for a week or so ter inbetween.
The Bitcoin Gold developers project to create a testnet sometime te mid-to-late October. They’ll make their software available soon after.
What does it mean for mij?
Bitcoin Gold will only affect you if you own Bitcoin when they pick the hard fork block, that is, around October 25. You will receive the precies amount of Bitcoin Gold spil Bitcoin you hold at that block.
They are programma strong replay protection, so you very likely won’t have to worry about replay attacks. However, you will most likely need to download a wallet or construct transactions by hand to be able to stir your Bitcoin Gold tokens.
Basically, if Bitcoin Gold isn’t worth very much (less than 0.0001 BTC or so), it’s most likely not worth doing anything. If it’s actually worth something (say 0.01 BTC or higher), there will be contraptions that wallet developers will most likely write so you can access your Bitcoin Gold.
If you have your Bitcoins on an exchange, the exchange will likely credit you with your Bitcoin Gold eventually. This will especially be true if BTG has value above 0.01 BTC. Generally, it’s better to control your own private keys spil that gives you the most plasticity. That said, the fiduciary duty any exchange or merchant has when they take possession of your Bitcoin means they very likely have to give you the Bitcoin Gold due to you.
Bitcoin Gold is another hard fork that will bring some switches to the ecosystem. If you’re a holder, there isn’t that much to fear here, and there may be some free money ter it for you! If you’re a developer for any wallet or exchange, that’s another story.
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