The Bitcoin Gold has gained enormous popularity in the world of Cryptocurrency as of late due to its rapid growth of market value. The Bitcoin Gold is a cryptocurrency embedded within the Bitcoin blockchain. The primary difference between the much popular Bitcoin and Bitcoin Gold lies in the memory algorithm that each of them employs. The Bitcoin Gold cryptocurrency uses an equihash memory protocol as their first algorithm, whereas, the Bitcoin uses a traditional sha-256 memory protocol. Also, a minor difference lies in their name representation. The typical Bitcoin is represented as BTC, whereas, the Bitcoin Gold is represented as BTG. The total number of BTG coins in circulation at present is about 17.1 million.
Before Bitcoin Gold was officially released in the market, it went through an extensive test to ensure its functionality and stability. The experiment proved successful after running on various platforms and, hence was officially launched on 12th November 2017.
Jack Llao, who is the present CEO of LightingAsic and BitExchange also founded the Bitcoin Gold. He founded the BTG along with five other members, who still plays a vital role in the development of BTG. All the members of the founding team consisted of veteran and highly skilled software engineers.
The Bitcoin Gold team adopted a unique algorithm in the form of Equihash instead of using the sha-256 algorithm that traditional Bitcoin used. The organization states that the new algorithm is much more efficient and more straightforward and has also gone on to say that the conventional/ mainstream Bitcoin network may ditch their old algorithm to embrace its new and efficient algorithm.
Bitcoin Gold can be thought of like an updated version of Bitcoin (not precisely). It was designed originally to verify and validate all the transactions related to the Bitcoin network and also to decentralize the whole bitcoin mining system. Before the hard fork, all the operations that took place in the Bitcoin network were all retained, and all the owners of Bitcoin were compensated for the exact amount regarding Bitcoin Gold coins.
The most basic and probably the most crucial aspect of Bitcoin Gold involve the application of a hard memory algorithm known as the "Equihash algorithm.” This new and efficient algorithm allows the Bitcoin Gold network to prevent the centralization of Bitcoin Gold market value, hence, discouraging the participation of only some small number of Wealthy investors. The algorithm also allows GPU mining; what this means is that it makes the whole process of developing and securing the transaction much more efficient. This, in turn, helps in keeping the Bitcoin Gold market value more stable and profitable.
The protection system that the Bitcoin Gold employs is “Sighash-Fork-ID replay relay Protection .“ The primary function as the name suggests is somewhat related to the protection system that electronic relay provides. The relay protection system uses a new algorithm in tackling the ease of transactions and provides the method with a two-way relay protection operation mechanism. The relay system also verifies any Bitcoin Gold transactions performed on the Bitcoin platform or vice-versa.
To make Bitcoin Gold a more time-friendly process, the system uses a shield in the form of DigiShield v3. The shield system used is based on a “difficult adjustment algorithm.” This shield system allows the Bitcoin Gold network to keep an eye on the amount of time taken while making a recent transaction. The system maintains a fixed time interval of 10-minutes for the new block to adjust to its difficulty.
Decentralization of mining
The Proof of Work aka PoW algorithm enables the Bitcoin Gold network to decentralize its mining structure. This means that all the individual users of the Bitcoin Gold blockchain platform have their private access and can use their chips for developing their respective codes. Thus the drawback involved in using centralized chips or specialized chips for mining is eliminated. All the individual users are free to use their respective GPU's to mine BTG, hence, allowing a fully decentralized system to work on.
Unique Address Format
The confusion between the mainstream Bitcoin and the Bitcoin Gold seems to be never-ending for most users. This is one of the reasons why the Bitcoin Gold developers/ team decided to completely change the address format of Bitcoin Gold (BTG) to that of Bitcoin (BTC) address. Apart from helping users differentiate between the two cryptocurrencies, it also aims to prevent or minimize the unintended transaction of Bitcoin Gold to Bitcoin or vice-versa.
The basic concept of replay protection is to protect the Bitcoin Gold users from malicious cyber attacks. The word cyber attacks seem to be analogous with digital currencies aka cryptocurrencies. This is one of the primary reasons why many people remain skeptical of using digital token/coin system as an alternative to the fiat currency. The replay protection system also protects users from various other sources of cryptocurrency fraud that leads to funding loss. The protection unit works on the principle of making the transaction only valid in one chain.
Preventing the Big Swings
The hash power has to remain in the ideal or at least closest to the perfect value for any cryptocurrency to function to its full capacity. The Bitcoin Gold effectively prevents any deviation from the required amount of hash power by utilizing its difficulty algorithm.
There are various exchanges available that enable you to purchase or convert Bitcoin Gold coins (BTG). Buying BTG usually involves a two-step process (Buy and Sell).
You have first to sign up and buy Bitcoin (BTC) and Ethereum (ETH) at Coinbase (or any other exchange available). You can buy either of them from any exchange that accepts payment from your banking cards (Debit or Credit).
After buying BTC and ETH, you can proceed to exchange them for a Bitcoin Gold coin. You can convert them to BTG using any of the following exchanges: Gate.io, Bithumb, Bitfinex, Cryptopia, Coinone, and more. After conversion, you can store and spend your Bitcoin Gold using any of the following BTG wallets: Guarda Multi-Currency Wallet, Exodus, Free Wallet, Ledger Wallet, and Guarda Mobile Wallet.
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