Updated: Dec 20, 2019
Bitcoin Gold is a hard fork of Bitcoin, which was created in 2017, to reform the mining process by changing its algorithm, in an attempt to reduce centralization in Bitcoin. BTG is the currency used by Bitcoin Gold and is attracting tremendous interest because of its inherent usability. Also, it has gained traction since launch because of its branding as one of the superior Bitcoin altcoins.
This guide will explain what Bitcoin Gold is all about - the purpose of its creation, the team behind it, the way it works, and its uses and applications.
What Is Bitcoin Gold Designed For?
By 2016, Bitcoin was suffering from serious centralization issues, completely against the concept of cryptocurrencies. Bitcoin Gold was created with a more decentralized approach and democratic mining infrastructure, with a total supply of 17.1 million BTG tokens. The cryptocurrency was created to decentralize mining and validate Bitcoin transactions.
The fact that BTG cannot be mined by using ASICs designed for Bitcoin, suggests that the team behind the cryptocurrency had the intention to decrease competition, over limited Bitcoin resources. BTG is designed to offer users a fair opportunity to mine with ubiquitous GPUs.
Who Is the Team Behind Bitcoin Gold?
The Bitcoin Gold mainnet was successfully launched in November 2017, by founder Jack Liao and a group of 5 others. Liao is also the CEO of LightingAsic and BitExchange.
BTG is a community-led project and the core team is supported by a strong and active team of veteran software developers, helping by regularly posting updates.
Bitcoin Gold is being operated by some renowned industry names, such as Martin Kuvandzhiev (Operations Lead) who also helped co-found Crypto apps Ltd. Hang Yin (Lead Developer) is the co-founder of LibraChina and pLibra.
How Does Bitcoin Gold Work?
Bitcoin Gold employs a Proof of Work algorithm running Equihash, which is minable with any general-purpose computer hardware (GPUs). The team claims to be working on convincing the mainstream Bitcoin network to adopt Equihash as well.
Equihash is a memory-hard algorithm that allows GPU mining. It also prevents the centralization of the cryptocurrency’s value, by small groups of wealthy investors. New investors should be drawn to BTG since it offers widely available mining hardware.
The Bitcoin Gold PoW algorithm decentralizes mining on the coin’s blockchain, restricting the use of certain chips for mining. This allows users to mine BTG with the help of GPUs, which only works to make the platform completely decentralized.
The network also uses SIGHASH_FORK_ID replay protection, which protects users from malicious attacks by preventing transaction replays and funds losses. This is done by rendering the transactions made on one chain, as invalid, on the others.
Bitcoin Gold could soon dethrone mining companies of Bitcoin, by releasing a new alternative mining algorithm that is less susceptible to configurations and ASIC-based optimization. This will allow the amount of Bitcoin Gold earned by a user with their spare computing cycles to increase automatically.
BTG tokens are available to trade on multiple exchanges like Bitfinex, Bithumb, Changelly, Change Now, Evercoin, Tdax, Shapeshift, BitBay, Abucoins, Binance, and Gate.io, among others. To store them you should consider partner wallets from Trezor, Ledger, Bitpie, Guarda, Freewallet, Coldlar, and Exodus among others.
What are Current and Future Applications of Bitcoin Gold?
Bitcoin Gold has shot to popularity because of its inherent usability and multiple functions. The coin is highly accessible, as it is made available on multiple exchange platforms with numerous trading pairs.
Bitcoin Gold has a wide array of partners where you can purchase, store and trade BTG. However, they also have a BTGPay project in the pipeline, which is currently being beta-tested with a handful of vendor partners, including PayPal and Stripe. Once live, BTGPay will enable users to pay for everything, from daily groceries to big-ticket items and experiences.
The maximum supply of BTG is the same as BTC at 21 million, though the initial infrastructure stood at 17.1 million tokens. The future looks extremely promising for this coin with a market capitalization of $441 Million.
It is all set for a marathon on the market and exchanges because of democratic mining and altered block time. Bitcoin Gold can be mined by anyone with a computer with GPU graphics cards, which makes it particularly democratic.
Further, any glitches that were hampering the coin’s growth and success, such as transaction fee or scalability, have been taken care of by the Lightning Network integration.