Cryptocurrencies can be novel from the point of view that they bring their own nomenclature into existence, which makes users who do not know about these terms nervous or filled with anxiety. Add to this, the confusion that media generates surrounding certain events like hard forks, which are just a change to a protocol of a cryptocurrency that makes previous invalid blocks or transactions on the Blockchain valid. In a hard fork, there is a permanent moving away from a previous version of the Blockchain and the older version nodes would not be accepted by the newest version. So, in essence, there is a split in a cryptocurrency.
These splits are in a way a form of market democracy and supporters of various chains get a chance to take their own stance and stand. A famous hard fork for example was in Ethereum, post the DAO hack when the team of Ethereum (ETH) tried to rollback transactions to try to restore the stolen funds. The resulting disagreement led to the birth of the new cryptocurrency called Ethereum Classic (ETC). Bitcoin is not immune to such hard forks either. The latest hard fork being that gave birth to Bitcoin Diamond (BCD), which was forked at block 495866 and assumed its very own chain. The fork took place on Nov. 24, 2017, due to the efforts of Team EVEY and Team 007, two Bitcoin miners who, Reuters report, “were not happy with some of the major downsides of Bitcoin.”
What does Team BCD want?
Bitcoin (BTC) has been the most popular cryptocurrency of its times. However, it is not free from its shortcomings. BTC transactions have been taking notoriously long time to process and they have gone expensive over time. This is because BTC blocks have been limited to one megabyte in size, which translates into around three transactions per second. BCD, on the other hand, has now raised the block size limit to eight MB, this will improve transaction capacity and blocks will be generated five times faster. The cost of BTC transactions has been rising, which has been casting a shadow on its practical applications. BCD, on the other hand, seeks to bring down costs related to transactions. A BCD executive was quoted at a press conference as saying:
“Our primary objective is to lower the cost for participation thresholds by reducing the transaction fees and the cost of participation. The total amount of Bitcoin diamond is 10 times as much of Bitcoin, which translates into reduction of the cost for new participation and reduction of the thresholds.”
Finally, at the moment BTC transactions are visible in the public domain and anyone can see data related to how much amount is in another person’s wallet and their conducted transactions as well. BCD will encrypt the amount and balance, which will afford greater privacy to users of the new cryptocurrency…
Read Full: Is Bitcoin Diamond a Better Bitcoin?
