Bitcoin fork how to get bitcoin gold

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Bitcoin Gold is a new, would be cryptocurrency denoted, as of now, as BTG or “bgold”. It will be a fork of the original Bitcoin that Satoshi Nakamoto invented in The Bitcoin Gold community defines BTG in the following fashion: Bitcoin Gold is a community-activated hard fork of Bitcoin to make mining decentralized again. How to Acquire Bitcoin Gold. Bitcoin Gold is not very popular at the moment, to say the least. The hard fork will occur on Oct 25th and to claim BGold you have to hold Bitcoin on your address at the time of the fork. If you hold 1 BTC on Oct 25th UTC, you should have 1BTG on the same address on November 1st (if all goes well). The Bitcoin split, otherwise known as the Bitcoin Gold fork, happened for the same reason as previous cryptocurrency forks. Some developers propose an upgrade to Bitcoin (BTC), but they need.

Bitcoin fork how to get bitcoin gold

Bitcoin Gold Fork Coming: How To Double Your Bitcoins

Here are some of the differences that BGold advertises on its website:. The main points of differences in Bitcoin Gold which catch our interest are: the Proof of Work PoW algorithm, mining hardware, difficulty adjustment, and replay protection. Proof of Work is the unit of measurement which protects the Bitcoin network from denial of service. The work done is the Bitcoin mining. The Bitcoin protocol is the one that decides what work must be done.

As you know, the work is to solve a math problem as fast as possible. Today, the math problem is to identify a block which, when hashed twice with SHA, gives us a specific number. This number must be smaller than what we call the difficulty target. The smaller the target, the more difficult the mining. This is a lot to take in and it is okay not to understand it immediately. What matters is to understand that this math problem requires very few steps.

The miners simply try out many combinations over and over again. If the bucket has 10 marbles, you might find the red marble after 3 or 8 picks. However, if the bucket has 1, marbles it will take longer.

Imagine that this game is Bitcoin mining, and the change of size of the bucket is the difficultly level adjustment. So people have designed specific pieces of hardware to perform this simple task over and over again. Many people have tried to think about how to make mining GPU accessible. Proof of stake is a very interesting alternative which was proposed for Bitcoin and is about to be implemented by Ethereum. Many people are opposed to it, so two researchers named Alex Biryukov Dmitry Khovratovich proposed a new Proof of Work algorithm called Equihash.

Equihash implements a memory-oriented Proof of Work. This means that how much mining you can do is mostly determined by how much RAM you have. In other words, you need a computer which can do many things to solve a problem. It can be more efficiently calculated on desktop computers with their multiple processing cores and gigabytes of memory.

ASICs can only do one thing so they cannot solve the problems Equihash gives them. Equihash is a so-called memory-hard problem, which can not be split up into smaller working packages.

Equihash is close to the Generalized Birthday problem GBP , an algorithm which requires memory in addition to computational power, and any memory reduction severely increases the necessary time. The Equihash algorithm makes a variable number of iterations over a large list. The list entries vary in size from one iteration to another, and various heuristic optimizations, like sorting and storing in a tree-like structure, can be applied at every step to linearly speed up the solution search as iteration increases.

Equihash is not limited to Zcash or Bitcoin Gold, it can be used in any cryptocurrency. It is worth pointing out that Equihash is similar to Ethash, the Proof of Work algorithm used by Ethereum. As you may know, Ethereum is trying to transition to a proof of stake system which would make a lot of the miners obsolete. Thus, it could happen that those miners would move their hashing power to a project like BGold instead of selling their graphics cards on eBay.

As explained in the marble example, the difficulty of mining is constantly adjusting. In Bitcoin, it is done in such a way that miners will solve a problem every ten minutes. What happens is that every two weeks the Bitcoin software looks at the average time it takes a miner to find a new block.

If it takes more than 10 minutes then the software will make it easier to find a block there will be less blue marbles in the box. If it takes less than 10 minutes, the software will make it harder to find the next block more blue marbles are added to the box.

Bitcoin cash does the same, but it has an emergency system which as explained above that creates a lot of instability. BGold on the other hand, wants to adjust its difficulty every single block to make sure that blocks are mined every ten minutes. The algorithm is called DigiShield V3 which was initially developed for another big cryptocurrency: DigiByte. The problem with this approach is that sometimes by chance someone can find the next block very fast by chance you can find the red marble on your first try.

Unlikely, but still possible. In that case, the software could think that many miners have arrived on the network, so it will make it much harder to find the next block. To remedy this problem, DigiShield has an asymmetrical logic where it will increase mining difficulty more slowly than it will decrease it. If we go back to the Equihash implementation, which is probably the most significant improvement to the Bitcoin protocol, we can see that Bitcoin miners are in trouble.

However, it might not be that simple. When you look at the instigator of Bitcoin Gold you can see that he is the founder of LightingAsics, which sells cryptocurrency miners.

These miners can be used to currently mine Bitcoin but also other cryptocurrencies such as ZCash. Something we should not forget about is that miners are very resourceful in terms of money, but maybe more importantly in brain power.

There are a few solutions that they can come up with to still be in the game in case of a great adoption of an algorithm such as Equihash. However, if the market is there then it is likely that specialized hardware will be developed and another Proof of Work algorithm will have to be developed.

A replay attack is a little bit a misnomer because it has a slightly different meaning in the Bitcoin world than it does in general IT. The risk of a replay attack is inherent to every hard fork and has to be taken into consideration in order to protect users from losing their funds.

You sent them 1 BGold for the transaction. How did that happen? Well as we know, BGold is an exact copy of the Bitcoin blockchain until the fork occurs. This means that all public and private keys are the same. So, when you send a transaction that you signed for with your private key on the BTC blockchain it will look exactly the same on the BGold blockchain if it is re-broadcasted by an attacker to that other blockchain.

Well, the easiest way not to lose money is to simply not transact until we are sure that we are fully protected against replay attacks.

So, we have to rely on the wallet providers or on the developers of the fork to implement a replay protection mechanism. Jack Liao has stated that BGold will have replay protection. Without replay protection, it is difficult to see any future for BGold; people would be too scared to use it and lose their much more valuable Bitcoins.

It is important to note though that this kind of attack only applies to BGold which are on the network right after the fork. This is maybe the biggest concern at the moment. Even if there is a quality team of developers, there seems to be a long way before BGold can be a usable cryptocurrency.

The team has pointed out to us that the Equihash implementation is ready, as well as the per-block difficulty adjustment and the testnet. They also have redirected us to some wallets, but none of them are working at the time of this writing.

You can check out the ecosystem section of their website. One element to ponder on here is that the progress of some of these features are difficult to implement. That being said, the team is indeed working very hard to make some progress. BGold is not going to be a simple hard fork. We can see that on their older website and older threads that they wanted to launch an ICO on top of their fork.

They would literally take full control of mining for a certain number of blocks and allocate all the rewards to their addresses. This operation is called pre-mining and can be done instantly. Then they would sell those newly mined BGold to the public. This is a very strange proposal. If there is a fork, the people with Bitcoin addresses will already have BGold.

Why would they then pay to get some more BGold? If they want it so badly they could just buy more Bitcoin before the fork. There has been back and forth and disagreements within the community.

These are the questions that matter to investors. The Bitcoin split, otherwise known as the Bitcoin Gold fork, happened for the same reason as previous cryptocurrency forks. Some developers propose an upgrade to Bitcoin BTC , but they need near-universal consensus to make it happen. The result is a splitting of the original blockchain. When the majority of developers laugh a proposed upgrade out of the room, the original blockchain carries on on like nothing happened,.

However, part of the blockchain splinters off, forming a new identity. Then, last month, rogue developers formed BTG by forking off the original blockchain. It does happen, to be honest. Not all Bitcoin splits come with replay protection, but this one did. I generally advise investors to take this approach, as exchanges have been hacked in the past. Cryptocurrency exchanges are generally more vulnerable than wallets.

Other wallets require technical steps. You can find guides for using Bitcoin Core, Electrum, Mycellum, hardware wallets, and paper wallets on the Bitcoin Gold web site. Bear in mind, not all of these guides are posted yet; they are works in progress. Welcome to the ground floor! Mining was the core reason for this Bitcoin split. Individual miners complained that deep-pocketed mining operations were gathering huge amounts of power in the system, effectively making them rulers of Bitcoin.

However, we certainly know that the core development team for BTG will do well. Bitcoin Gold has significant upside, but it is a volatile proposition. Bitcoin Cash has been on a roller-coaster ride since it forked in August. Investors with a lot to lose should probably stay on the sidelines. You can unsubscribe at any time.

How to Get Bitcoin Gold? Should You Invest in BTG? Join CoinSutra Community

How to Acquire Bitcoin Gold. Bitcoin Gold is not very popular at the moment, to say the least. The hard fork will occur on Oct 25th and to claim BGold you have to hold Bitcoin on your address at the time of the fork. If you hold 1 BTC on Oct 25th UTC, you should have 1BTG on the same address on November 1st (if all goes well). Jan 02,  · Anyone who held Bitcoins before the time of the creation of Bitcoin Gold is eligible to receive an amount of Bitcoin Gold (BTG) equal to the amount of Bitcoins (BTC) they had. For example, if you had 1 Bitcoin before the split (aka the Bitcoin Gold fork), you’ll now have 1 Bitcoin . The Bitcoin split, otherwise known as the Bitcoin Gold fork, happened for the same reason as previous cryptocurrency forks. Some developers propose an upgrade to Bitcoin (BTC), but they need. Tags:How did you purchase bitcoin in 2010, Torrent client mining bitcoin, Will bitcoin be made illegal, Btc crash prediction, Kurs btc euro

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