Nov 20, · This is the once-a-week free edition of The Diff, the newsletter about inflections in finance and technology. The free edition goes out to 16, subscribers, up week-over-week. In this issue: What’s Gold for? Bitcoin, Flows, Autochthony. Digital . Jun 16, · Bitcoin Cash. Bitcoin Cash is a different story. Bitcoin Cash was started by bitcoin miners and developers equally concerned with the future of the cryptocurrency and its ability to scale. Bitcoin Gold (BTG) is a fork of Bitcoin that occurred on 24 October on block Bitcoin Gold changed Bitcoin’s proof-of-work algorithm from SHA to Equihash rendering specialized mining equipment obsolete in an attempt to democratize the Bitcoin mining process.
Bitcoin gold diffWhat’s the Difference Between Bitcoin, Bitcoin Cash, Bitcoin Gold, and Others?
Critics have pointed out that Bitcoin Cash seems designed be confusing. Both bitcoin. Bitcoin Cash is the fourth most valuable coin after Bitcoin, Ethereum, and Ripple as of April 16, You can buy Bitcoin Cash on Coinbase just as easily as you can buy Bitcoin. This was the first big hard fork and took place on August 1, , inspiring other hard forks of Bitcoin.
Bitcoin Gold tackles another problem some see with Bitcoin: the increasing centralization of Bitcoin mining that requires specialized hardware and makes it impossible for the average person to mine. Specialized hardware known as application-specific integrated circuits ASICs is required to mine profitably. And those mining companies can wield power over the network thanks to their massive size. The Bitcoin Gold hard fork tackles this problem by swapping out the SHA mining algorithm in Bitcoin for another algorithm called Equihash.
Bitcoin Gold is designed so that average people—or at least average people with powerful graphics processors GPUs —can mine Bitcoin on their PCs once again, making the network more decentralized. As of April 16, , Bitcoin Gold was the 26th most valuable coin and the third most valuable Bitcoin hard fork after Bitcoin Cash and Bitcoin Diamond, according to Coinranking. It also promises some privacy by encrypting the values of each transaction. This is the 16th most valuable coin and second most valuable Bitcoin hard fork and as of April 16, , beating Bitcoin Gold.
So, if you had 10 Bitcoin and 10 Zclassic, you ended up with 20 Bitcoin Private as well. Get Rediff News in your Inbox: email. Print this article. Advice to investors: 'Stay away from short term gains'. Will this Budget lower income tax? Does Modi want small companies to fail? Below, we'll take a closer look at how bitcoin and BCH differ from one another. In July , mining pools and companies representing roughly 80 percent to 90 percent of bitcoin computing power voted to incorporate a technology known as a segregated witness , called SegWit2x.
Signature data has been estimated to account for up to 65 percent of data processed in each block, so this is not an insignificant technological shift. By January , however, block size has declined back toward 1 MB on average. In September , research released by cryptocurrency exchange BitMex showed that SegWit implementation had helped increase the block size, amid a steady adoption rate for the technology. Bitcoin Cash is a different story.
Bitcoin Cash was started by bitcoin miners and developers equally concerned with the future of the cryptocurrency and its ability to scale effectively. However, these individuals had their reservations about the adoption of a segregated witness technology. They felt as though SegWit2x did not address the fundamental problem of scalability in a meaningful way, nor did it follow the roadmap initially outlined by Satoshi Nakamoto , the anonymous party that first proposed the blockchain technology behind cryptocurrency.
Furthermore, the process of introducing SegWit2x as the road forward was anything but transparent, and there were concerns that its introduction undermined the decentralization and democratization of the currency.
In August , some miners and developers initiated what is known as a hard fork , effectively creating a new currency: BCH. BCH has its own blockchain and specifications, including one very important distinction from bitcoin.
Bitcoin Cash is thus able to process transactions more quickly than the Bitcoin network, meaning that wait times are shorter and transaction processing fees tend to be lower. The Bitcoin Cash network can handle many more transactions per second than the Bitcoin network can. However, with the faster transaction verification time comes downsides as well. One potential issue with the larger block size associated with BCH is that security could be compromised relative to the Bitcoin network.
Similarly, bitcoin remains the most popular cryptocurrency in the world as well as the largest by market cap, so users of BCH may find that liquidity and real-world usability is lower than for bitcoin.
The debate about scalability, transaction processing and blocks has continued beyond the fork which led to Bitcoin Cash. In November of , for example, the Bitcoin Cash network experienced its own hard fork, resulting in the creation of yet another derivation of bitcoin called Bitcoin SV.
Bitcoin SV was created in an effort to stay true to the original vision for bitcoin that Satoshi Nakamoto described in the bitcoin white paper while also making modifications to facilitate scalability and faster transaction speeds. Visa, Inc. Accessed Jan.