Characteristics of Bitcoin Gold

Characteristics of Bitcoin Gold

As it is described in the webpage, the central features of this new cryptocurrency are decentralization, fair distribution, replay protection and transparency. With decentralization, as explained before, Bitcoin Gold “implements a new PoW algorithm, Equihash, that makes mining decentralized again. Special computer hardware designed for BTC mining is obsolete for mining BTG, giving ordinary users a chance to mine with GPUs”.

Fair distribution claims that, when a hard fork of Bitcoin occurs, new digital asset is distributed efficiently and fairly. Instead, cryptocurrencies created from a new genesis block are concentrated in a small group of people, leading to a distribution of coins that is not fair and efficient.

Replay protection is a mechanism used to ensure the safety of the Bitcoin ecosystem. This feature “protects users’ coins from being spent accidentally”. Consequently, if you make a transaction in the new blockchain, your coins are protected with this technology.

When Bitcoin Gold defenders claim that this new coin is transparent, it is because Bitcoin Gold is “a free open source software project that is built by volunteer developers and supported by a rapidly growing community of Bitcoin Enthusiasts”.