Last week, Bitcoin Gold (BTG) hard forked from Bitcoin (BTC). The slogan of the new cryptocurrency, “Make Bitcoin decentralized again”, shows very clearly the goal of BTG: to re-decentralize BTC.
“The intent behind the creation of Bitcoin Gold is to support true decentralization of Bitcoin, with the goal of the project being the same goal as any Bitcoin hard fork: to improve the protocol,” said Abhishek Pitti, CEO of cryptocurrency service provider Nucleus.
Even though BTC is already a decentralized cryptocurrency, many mining pool are gaining too much power with their too efficient mining equipment, putting the little miners out of competition. To re-decentralize Bitcoin mining again, BTG uses a new proof-of-work system with a new hash algorithm, Equihash, which would make obsolete all other mining equipment for SHA-256, the mining algorithm used for BTC. Miners now have to use GPUs to mine Bitcoin Gold, instead of the Application Specific Integrated Circuits, because GPUs mine Equihash about 100 faster that ASICS. However, the size of a BTG block is the same as BTC, which is still very small compared to Bitcoin Cash (BCC).
While the goal of BTG is to completely surpass BTC, it seems for now very unlikely. Right after the hard forked, BTG value dropped by more than 70%, and has now stabilized at $130. Bitcoin remains in the lead of the cryptocurrency market, as this week the cryptocurrency reached its all-time high of over $7000.
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