Tokens24.com is your single stop for crypto

Bitcoin Diamond (BCD): A Complete Guide

Coin Guides

Bitcoin diamond (BCD) is a fork of bitcoin that takes the existing bitcoin infrastructure and enhances it to support more advanced privacy features and a new currency (BCD). The fork was pre-arranged with a specific block on the bitcoin blockchain set as the trigger point at which a new blockchain would be generated. It shares a history with the bitcoin up to the point of forking where the new network begins to register its own transactions and creates new blocks through mining.

History

The original bitcoin network was created by an anonymous person identified as Satoshi Nakamoto in August 2008 introducing the concept of trustless peer to peer transactions. The bitcoin has since seen a number of forks that have led to the creation of other cryptocurrencies focused on solving specific challenges faced by the bitcoin.

Bitcoin diamond was forked from the original bitcoin on November 24th, 2017 when it reached a block height of 495,866. The main net was updated in December 2017 with the main net lightning network expected to be available in the 3rd quarter of 2018.

Bitcoin diamond’s founders remain anonymous with the coin’s development governed through the bitcoin diamond foundation. There was no initial coin offering for the bitcoin diamond. Rather, holders of bitcoin at the time of the fork automatically became owners of the new BCD coins receiving 10 BCD coins for each BTC held.

How Bitcoin Diamond Works

The bitcoin diamond coin is bitcoin-based as its blockchain takes on all the characteristics of the bitcoin network during forking. However, it operates on its own blockchain that was launched shortly after the fork and which operates independently from Bitcoin’s blockchain.

Bitcoin diamond uses a new PoW algorithm different from that used by the bitcoin. With bitcoin diamond, there are only 1000 blocks to be mined with the PoW mechanism after which the platform will shift to use Proof-of-Stake which gives holders an opportunity to earn interest on their coins held in a BCD wallet.

BCD coins were created with a limit of 210 million units. 170 million units were distributed to bitcoin holders with each bitcoin held giving the investor 10 BCD units; the rest were allocated to the community to be distributed in the form of mining and reward pools.  

The BCD network uses larger block sizes and optimizes each block’s block-out speed to facilitate faster transactions compared to the BTC. The coin is intended for mass application and was created with a maximum supply of 4.6 billion units to be able to handle inflation.

Proof-of-Work Algorithm

Bitcoin diamond uses a new PoW algorithm different from that used by the bitcoin. With bitcoin diamond, there are only 1000 blocks to be mined with the PoW mechanism after which the platform will shift to use proof of Stake.

BCD coins were created with a limit of 210 million units. 170 million units were distributed to bitcoin holders with each bitcoin held giving the investor 10 BCD units; the rest were allocated to the community to be distributed in the form of mining and reward pools.

BCD uses larger block sizes and optimizes each block’s block-out speed to facilitate faster transactions compared to the BTC. The coin is intended for mass application and was created with a maximum supply of 4.6 billion units to be able to handle inflation.

Since inception, Bitcoin has continued to grow in value with transaction charges going up as well as limiting access to the coin. Other areas of concern from the growth of the original bitcoin have included lack of privacy protection, transaction confirmations that take time and a high thresh-hold for new members.

Bitcoin diamond coin was created to address these challenges. Privacy in bitcoin diamond based transactions is achieved by use of encryption techniques that mask details on the amount transacted.

Mining and Ownership

The introduction of bitcoin diamond coins through forking of the bitcoin mean those individuals that held bitcoin at the time of forking like many other cryptocurrencies, users are incentivized to participate in the validation of transactions in the blockchain earning bitcoin diamond as a reward (mining). This can be done either individually as a full node client or in public mining pools where members share tasks and split the rewards from mining activities amongst themselves.

BCD coins are available for trade in several crypto exchange platforms creating an avenue for interested parties to get bitcoin diamond by trading between BCD and other crypto assets or fiat currencies available for trade in the specific exchange platforms.

Besides mining, users can also make contributions towards the development of the ecosystem and receive rewards in the form of Bitcoin diamond.

Leave a Reply

Please Login to comment

Newsletter

Community

Tags