Bitcoin Diamond (BCD) was one of the more contentious Bitcoin hard forks in 2017. There was various gossip that the coin was a trick at that point. Opinions varied; some suggested it aimed to capitalize on the BTC brand, while others cautioned that claiming the hard fork’s crypto might risk personal data loss. While potential pump-and-dump activity exists, no concrete evidence of fraud has emerged regarding BTC Diamond so far.
History of Bitcoin Diamond
On November 24, 2017, when the Bitcoin blockchain reached block 495,866, Bitcoin Diamond was first issued. The founders of this crypto had not yet revealed anything, which was an issue (or one of the concerns) at the moment. At that time, there was no whitepaper, community, minimal info, and no apparent blockchain or GitHub account with exposed source code. Despite all the uncertainties surrounding the latest BTC hard fork, the price soared up to $94 within a few days, which was also a record high for Bitcoin Diamond. Soon after the debut, the BCD team also released the source code, improved communication, and increased activity on social media. As a result, many of the doubts about the initiative that had characterized it as a hoax were dispelled.
Creators of Bitcoin Diamond
The founders of BCD are anonymous, which is a similarity between it and its parent cryptocurrency, Bitcoin. Satoshi Nakamoto, a pseudonym for a programmer or group of programmers, is credited with creating BTC. Similar to that, engineers who used aliases produced BCD. In this instance, there are three, two of whom identify as “Evey” and “007,” and the third who maintains complete anonymity. Later, it was revealed that the identities were those of development teams and that Singapore is probably where the BTC Diamond Foundation is located.
How Bitcoin Diamond works
BTC Diamond is a decentralized organization that plans to give clients a way to trade cash, like other blockchains. It has a few similitudes to BTC because it was a fork of that coin, however, it likewise has a few idiosyncrasies. Its use of mining and the Proof of Work algorithm for transaction and block verification is one commonality. Miners receive rewards in return for supplying the necessary computational power for verification processes. However, it is different from BTC in that it does not employ the SHA-256 algorithm. Because of the dominance of specialized ASIC miners, which have somewhat centralized BTC, the development team shifted away from SHA-256. Instead, BCD uses the X-13 algorithm, which is ASIC-resistant and enables miners to use inexpensive GPUs to offer network security and verifications. BTC aimed to be a fully decentralized digital currency, enabling faster, cheaper, reliable, and private transactions compared to traditional financial systems. Although Bitcoin succeeded in achieving those goals, it is undeniably imperfect, and there is always room for improvement. Three issues with the pioneer crypto are what BCD aims to address: poor privacy protection, a high entry bar for new users, and sluggish transaction speeds. The remaining 40 million BCDs were kept in reserve for mining incentives, leaving 170 million BCDs available at the time of the release. This crypto’s creators clarified it wasn’t a Bitcoin competitor but a dividend for Bitcoin holders, aiming to boost cryptocurrency adoption and usage.
Benefits of Bitcoin Diamond
To enhance some aspects of the first crypto, like network performance and transaction fees, Bitcoin Diamond was developed. The BCD team places a high priority on privacy. Decentralized mining has been aided by BCD. Although the centralization of Bitcoin miners has been an ongoing issue, BCD is unaffected. The main catalyst is its transition from the ASIC miner-dominated SHA-256 algorithm to an algorithm conducive to GPU mining. This alteration facilitates a faster and more cost-effective method of money transfer. Simplifying and reducing the cost of money transfers constituted a significant impetus behind the creation of Bitcoin. That has undoubtedly been done with BDC, which is also speedier and less expensive than Bitcoin. Its relatively modest value sets it apart, making it notably more budget-friendly than many other prominent cryptocurrencies.
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