Bitcoin is the most expensive and well-known cryptocurrency in the world, but it also has a few subsidiary tokens that have gained popularity in the market in recent years. Bitcoin Gold is one of those subsidiary tokens.
Bitcoin Gold (BTG) is a cryptocurrency hard forked from Bitcoin that was created in November of 2017. A hard fork happens when a blockchain is divided in two as a result of a significant change in the protocol.
As a result of this shift, a token cannot exist on the prior blockchain since it is incompatible with the blocks that came before. Because of this, it requires its own blockchain that is distinct from others. As a result, the blockchains for Bitcoin and Bitcoin Gold are distinct from one another.
In the instance of Bitcoin Gold, it used the architecture of the Bitcoin chain to build its own chain that aims to address some of the key faults that have plagued the cryptocurrency.
Bitcoin Diamond and Bitcoin Cash are two instances of Bitcoin hard-forks that have occurred in the past.
Security Issues with Bitcoin Gold
Bitcoin Gold has been the target of many security breaches since its inception. It was the subject of a significant distributed denial of service attack on the day of its launch.
The Bitcoin Gold miners blamed the cryptocurrency’s creators for increasing mining costs during the assault, resulting in growing hostility between the miners and the cryptocurrency’s developers.
Bitcoin vs. Bitcoin gold
The consensus model differs significantly between Bitcoin Gold and Bitcoin. When it comes to verifying transactions, however, Bitcoin relies largely on specialised equipment (typically ASIC miners) in its proof of work method.
Large organisations may obtain control of the network and make it harder for smaller miners to enter the market.
The goal of Bitcoin Gold is to lower the barrier to entry for smaller mining operations. GPU mining is more popular since it is more cost-effective for individuals with limited resources.
Since ASIC miners don’t have an edge over GPU miners in this new mining technique, it is possible. As a result, the verification network may spread out more and play a bigger role.
The Launch and Controversy of Bitcoin Gold
From the start, Bitcoin Gold has been a source of debate. On the same day as the debut, BTG’s cloud site was hit by a major DDoS assault, and miners suspected one of the developers of hiding a 0.5% mining charge.
There was also a concern that Bitcoin Gold’s security procedures were not as strong as they had been claimed to be, which would make it more vulnerable to attack.
Problems faced by Bitcoin Gold
Bitcoin Gold has faced many problems in the past. A smaller blockchain that uses a PoW algorithm is more vulnerable to 51% attacks.
A 51% attack occurs when a cybercriminal or cybercriminals control over 50% of a network’s computational capacity. To govern the network, a third-party frequently rents hash power.
A 51% attack can cause transactions to be blocked, reversed, and tokens to be double-spent. Sadly, the Bitcoin Gold network has been attacked many times in recent years, particularly in 2018 and 2019.
In spite of this, Bitcoin Gold has grown in popularity. The currency is presently worth roughly $43 and has a market valuation of around $750 million. So, it’s fair to assume the coin isn’t going away soon. ’
Bitcoin Gold makes cryptocurrency mining accessible to the general public
Although the Bitcoin mining environment is already populated by highly experienced professional miners, Bitcoin Gold provides an open door for individuals who wish to begin mining without incurring a significant upfront fee or requiring a great deal of prior expertise or experience.
Bitcoin Gold, another of Bitcoin’s several hard fork derivatives, also enjoys a strong position in the market and a hopeful future as a cryptocurrency.